Total, KazMunaiGas Team Up for Caspian Sea Project
Total has announced the signature of a Heads of Agreement (HOA) establishing the principles of a partnership with KazMunaiGas (KMG) for the development of the Khvalynskoye field, located offshore in the Caspian Sea on the border between Kazakhstan and Russia.
Khvalynskoye is a conventional gas condensate field located in water depths of 25 meters which will be developed by Lukoil (50%, operator). The gas produced from this field will be transported to Russia.
Under the terms of the HOA, Total and GdF-Suez will acquire a participation of 25% (Total 17%, GdF-Suez 8%) from the initial 50% stake held by KMG.
"This agreement provides the opportunity for Total to further strengthen its ties with KazMunaiGaz, with whom the Group is already a partner on the Kashagan project in Kazakhstan," stated Yves-Louis Darricarrère, President Exploration and Production. "Total will bring to the Khvalynskoye's partners the company's know-how in developing offshore projects in order to successfully develop the field."
The Khvalynskoye field is slated to come on stream in 2016 with an estimated production of 8-9 billion cubic meters of gas per year.
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