Talks Btwn Kazakhstan & BG on Kashagan Planned for Feb. 24th

According to Vladimir Shkolnik, Minister of energy and mineral resources, the next round of the talks between the government of Kazakhstan and BG on the purchase of the latter's share in the Kashagan field development project is due to take place on 24 February in London.

Mr. Shkolnik believes that "the last finer points will be agreed upon." At the meeting. "We are to complete the documents before late March," he added.

The Minister has given a positive answer to the question of whether Kazakhstan consented to purchase only half of the BG share. Earlier it was reported that Kazakhstan was going to complete its purchase of 8.33% of the BG share in Kashagan field development project before late March. The market value of BG's 16.67% share is estimated at $1.23 billion: consequently half of the share being purchased is estimated at $615 million.

The proven Kashagan reserves are estimated at 1.5 billion tons. The consortium plans to start commercial production at Kashagan between 2007 and 2008.