BG Group Increases Stake in Caspian Sea Project
BG Group announces that the pre-emption process for interests in the North Caspian Sea Production Sharing Agreement (PSA) has been completed. The Group's shareholding in the PSA, which includes the Kashagan discovery, increases from 14.29 percent to 16.67 percent. The pre-emption process was started after BP and Statoil notified their intention to dispose of their interests in 2001.
David McManus, Executive Vice President, BG Group plc, said: "Positive results from the recent appraisal drilling on Kashagan and the continuing appraisal program scheduled this year adds value to BG Group's investment in the North Caspian Sea."
The North Caspian Sea PSA covers 5,600 square kilometers of the Kazakhstan sector of the Caspian Sea. It is operated by ENI-Agip, with the other members of the consortium comprising BG Group, Exxon Mobil, Shell, TotalFinaElf, Phillips and Inpex. The first exploration well, Kashagan East-1, was announced as a discovery on June 30 2000. Two wells, Kashagan West-1 and Kashagan East-2, were tested successfully in April 2001 and October 2001, respectively. An appraisal program, agreed by the Kazakhstan authorities, is currently underway, and up to five wells may be drilled by 2003.