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.
- Lukoil Taps SNC-Lavalin for Iraq Contract (Sep 06)
- Lukoil Reports 20% Rise In 2Q Profit On Stronger Oil, Weaker Rouble (Aug 29)
- Romania Closes One Case Against Russia's Lukoil, Related Trial Still On (Nov 17)
Company: Total S.A. more info
- Oil CEOs Jostle for Global Natgas Crown Under Putin's Gaze (Oct 04)
- Uganda Expects to Miss Target for First Oil (Sep 24)
- Total Joins Tullow-operated Block Offshore Guyana (Sep 13)
Company: KazMunayGas more info
- Shell Said to Drop Plan to Buy Stake in Kazakh State Oil Company (Oct 09)
- Caspian Pipeline Consortium Cuts CPC Blend Export Plan by 10 Pct (Aug 21)
- New UK Listing Rules Set to Attract State Companies Beyond Aramco (Jul 17)