KMG EP purchases remaining shares in Karpovskiy Severniy

JSC KazMunaiGas Exploration Production (KMG EP) reported acquiring 49% share in Karpovskiy Severniy LLP (KS) from MOL Hungarian Oil & Gas PLC for $1. KMG EP now owns a 100% interest in KS after exercising its priority right to purchase a share in KS in accordance with the shareholder agreement.

All regulatory approvals also have been received.

KS is a subsoil use right holder under contract for the exploration of oil, gas, and condensate in the Karpovskiy Severniy contract area in western Kazakhstan. The Karpovskiy Severniy block is about 40 km northwest of Uralsk in the vicinity of the Fedorovskiy block and other existing discoveries.

KMG EP is among the top three Kazakh oil producers based on 2016 results. Overall production in 2016 reached 245,000 b/d of crude oil, including the company’s share in Kazgermunai, CCEL, and PKI. The company’s volume of proved and probable reserves, excluding shares in the associates, at yearend 2016 was 1,327 million bbl.