A unit of Exxon Corp. has entered industry's exploration program in Kazakhstan.
The vehicle is an Exxon Ventures (CIS) Inc. agreement to acquire an interest in Oryx Kazakhstan Energy Co.'s Mertvyi Kultuk block. The 12,200 sq km tract lies just south of giant Tengiz field on the northeast shore of the Caspian Sea (see map, OGJ, Aug. 15, 1994, p. 36).
Under the terms of the agreement, Exxon Ventures affiliate Exxon Mertvyi Kultuk Ltd. will acquire a 50% interest in Oryx's Mertvyi Kultuk exploration block and an associated production sharing contract. The current agreement is subject to negotiation and execution of definitive agreements, including farmout and joint operating contracts.
The exploration period of the contract runs 4 years with options covering two additional periods of 3 and 2 years.
Oryx will be operator for the venture during initial exploration activity. A joint operating company will be set up in the event of a commercial discovery and development. Terry Koonce, president of Exxon Ventures and Exxon Mertvyi Kultuk, said, "Exxon has been seeking an investment opportunity in Kazakhstan for some time, and this represents a significant first step." Copyright 1995 Oil & Gas Journal. All Rights Reserved.