KazMunayGas and Statoil signed HOA on Abay block in the Kazakhstani sector of the Caspian Sea

ASTANA. March 30. KAZINFORM JSC NC "KazMunayGas" and Statoil have signed the Heads of Agreement (HOA) on the Abay block located in the Kazakhstani sector of the Caspian Sea on 16 March this year.

According to the press service of JSC NC "KazMunayGas", under the HoA, the parties plan to conduct work on agreeing the terms of cooperation in implementing the Abay project. In addition, the parties have agreed Statoil's participation in the construction of a jack-up drilling rig that will be used to develop the block on the Caspian shelf in the future.

"We are interested in cooperation with Statoil, in attracting and using their experience and technologies in operating international offshore oil and gas projects. HoA signing confirms the intentions of the Parties about the strategic partnership of our two companies on the joint activities in the Caspian Sea" - said Kairgeldy Kabyldin, Chairman of the Board of JSC NC "KazMunayGas".

"Joint cooperation in the Abay block is an important strategic step for Statoil as we continue our international growth. This agreement marks an important milestone - Statoil's re-entry into Kazakhstan - and I am very pleased that we have secured a strong partnership with National Company "KazMunayGas"," says Tim Dodson, Executive Vice President for Exploration in Statoil.

Shortly JSC NC "KazMunayGas" is planning to start direct negotiations with the Ministry of Oil and Gas of Kazakhstan on getting the subsoil user rights on the Abay block. In the implementation of the project, the parties will assume obligations on training the local personnel and financing social projects.