CMOC Makes Find at Khazar-1 in the Caspian

CMOC commenced operations on the Khazar-1 exploration well in late August 2007 and has shown presence of hydrocarbons. More information will be available after the well is completed.

The Pearls contract area is located in the North Caspian sector approximately 90km from Bautino (Mangistau Region). The jack-up rig "Astra" conducted exploration drilling.

Caspi Meruerty Operating Company B.V. is the Joint Operating Company for Pearls project within Kazakhstan Sector of the Caspian Sea. The company conducted drilling operations in full compliance with the environmental and safety legislation of the Republic of Kazakhstan. During the drilling operations the company also complied with the principle of zero discharge of pollutants. Ecological monitoring followed drilling operations.

Production Sharing Agreement (PSA) in the Pearls Contract Area allocated in Kazakhstan Sector of the North Caspian Sea was signed on 14 December 2005. Signatories to the PSA are the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, which represents the Republic of Kazakhstan, as well as subsoil users JSC OOC KazMunayTeniz - 25%, Shell EP Offshore Ventures Limited - 55% and Oman Pearls Company Limited - 20%.