Kazakh firms, BG Group agree to study E&P deals

KazMunayGas, KazMunaiGas EP, and BG Group have agreed to study upstream opportunities in Kazakhstan and other countries under a cooperation agreement signed Dec. 5 in Almaty.

Dec 9th, 2008

Uchenna Izundu
International Editor

LONDON, Dec. 9 -- Kazakh state-owned JSC KazMunayGas, KazMunaiGas EP (KMG EP), and BG Group PLC have agreed to study upstream opportunities in Kazakhstan and other countries under a cooperation agreement signed Dec. 5 in Almaty.

The firms will form a joint venture to focus on specific regions and suggest prospective acreage to pursue.

BG operates the large Karachaganak gas-condensate field in Kazakhstan with other companies but has postponed the third expansion phase due to higher operating costs. Phase 3 was expected to cost $8 billion and to come on stream in 2012.

The postponement could block the government's ambition to be one the world's top energy producers by 2015.

Contact Uchenna Izundu at uchennai@pennwell.com.

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