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BG/Agip to sell Texaco stake in Karachaganak

Aug. 25, 1997

Kazakhstan's government has approved a move by BG plc and Agip SpA to sell a 20% interest in supergiant producing Karachaganak oil and gas field to Texaco Inc. Although the value of the deal was not disclosed, Texaco said it is joining the group as it negotiates a final production-sharing agreement, expected to be completed by yearend. BG and Agip have been seeking to farm out some interests in the project for some time, and BG is reorganizing its portfolio in the final stage of

Kazakhstan's government has approved a move by BG plc and Agip SpA to sell a 20% interest in supergiant producing Karachaganak oil and gas field to Texaco Inc.

Although the value of the deal was not disclosed, Texaco said it is joining the group as it negotiates a final production-sharing agreement, expected to be completed by yearend.

BG and Agip have been seeking to farm out some interests in the project for some time, and BG is reorganizing its portfolio in the final stage of transformation from state-owned monopoly to private firm (OGJ, June 23, 1997, p. 26).

Karachaganak currently produces more than 50,000 b/d of condensate and 210 MMcfd of gas. But total reserves are estimated at 2 billion bbl of liquids and 20 tcf of gas.

BG and Agip hope to produce 700 bcf/year of gas and 78 million bbl/year of liquids from the field, following a $6 billion development program spread over 10 years (OGJ, July 13, 1992, p. 24).