Cooperation between Kazakhstan and NorwayKazMunayGas and Equinor Sign the Joint Study Agreement. Source: KMG

Cooperation between Kazakhstan and Norway

KazMunayGas and Equinor have signed a Joint Study Agreement that provides geological and geophysical studies in order to assess the hydrocarbon potential in Kazakhstan.

On September 24th, Alik Aidarbayev, Chairman of the Management Board at JSC NC “KazMunayGas” (“KMG”) met with Tore Løseth, Senior Vice President for Exploration at Equinor ASA (“Equinor”).

The meeting attendees expressed their interest in a joint study of some oil and gas areas in the Republic of Kazakhstan in order to be awarded subsoil use contracts going forwards.

KMG’s geography of assets. Source: Annual Report 2018

To that effect, the companies signed a Joint Study Agreement as part of their long-term mutually beneficial cooperation. The document was signed by Dastan Abdulgafarov, Chief of Staff, Managing Director for Development at KMG and Tore Løseth, Senior Vice President for Exploration at Equinor.

“We expect that this Agreement will serve as the basis of successful cooperation in future. Both companies are ready to consider Equinor as a strategic partner under exploration and production contracts in Kazakhstan,” Alik Aidarbayev said.

National Company “KazMunayGas is Kazakhstan’s national operator for exploration, production, refining and transportation of hydrocarbons, representing the state in Kazakhstan’s petroleum sector. The Group of JSC “National Company “KazMunayGas”, founded in 2002, includes over 180 entities.

The National Company accounts for 25% of crude oil and gas condensate production, as well as 15% of natural and associated gas production domestically.

In 2018, KMG produced 173 MMboe oil and 1.5 MMboe gas condensate.

KMG’s geologic exploration project portfolio consists of 23 projects (joint and independently led), of which 14 are being implemented onshore, and 9 – offshore.

According to KMG, as of 1 January 2019, proven recoverable reserves of oil and condensate in place (inclusive of its stakes) are approx. 4.9 BBoe.

KMG’s operating results in 2018. Source: Annual Report 2018