In 2005, Dostan-Temir LLP successfully participated in a Government tender and was awarded the right to sign the exploration contract with the Government of Kazakhstan. The acquisition is subject to fulfilment of certain conditions, with completion expected within the next few months.
East Akzhar, a 602-square-kilometer exploration block, is located to the south of Aktobe in a region home to numerous oil and gas operations on the eastern fringe of the Caspian depression. East Akzhar is in close proximity to the Loktibai-Kenkiyak oil pipeline and the Kenkiyak-Atyrau gas pipeline.
A number of 2D and 3D seismic surveys and other exploration activities have been performed on the block including the drilling of exploration wells. Further exploration work will be carried out to determine the block's full potential.
This transaction represents Kazakhmys' first entry into the petroleum sector, in line with its stated strategy to seek growth opportunities across natural resources within Kazakhstan and the region. The Board is considering a number of options for the development of East Akzhar.
Dostan-Temir LLP is a Kazakhstan registered company with gross assets of $0.1 million. It has been acquired from Total Commerce Solutions Limited, a privately owned company.
Vladimir Kim, Kazakhmys Executive Chairman said:
"I am excited by this move into the oil and gas sector. It is a first step to delivering on our strategy of diversification of our business. Kazakhstan is a country rich in natural resources and we will continue to seek out further opportunities for our shareholders."
Kazakhmys is a London-listed natural resources company with operations in Kazakhstan. Its principal business is the mining, processing, smelting, refining and sale of copper and copper products, including copper cathode and copper rod, and is carried on by the Company's main subsidiary Kazakhmys Corporation LLC. The Group's operations are vertically integrated. Kazakhmys operates 19 open-pit and underground mines and two smelting and refining complexes in the Republic of Kazakhstan. Kazakhmys also owns significant rail infrastructure in Kazakhstan and MKM, a copper products fabrication company in Germany.
Most Popular Articles
From the Career Center
Jobs that may interest you