RNS Number : 7114U
JSC KazMunaiGas Exploration Prod
20 October 2010
KMG EP and KOGAS awarded the rights to develop one of the largest gas fields in Iraq
Astana, 20 October 2010. JSC KazMunaiGas Exploration Production ("the Company" or "KMG EP") announces that in partnership with Korea Gas Corporation (KOGAS) it has been awarded the rights to develop the Akkas gas field in the Republic of Iraq in the Third Licensing Round organized by Petroleum Contracts & Licensing Directorate of the Iraqi Ministry of Oil. The terms of the proposed deal are $5.5/boe Remuneration Fee Bid and 400 MMSCFD Plateau Production Target.
In accordance with the conditions of the Third Licensing Round, the State Company owned by Iraqi Government will hold 25% equity share in the final consortium with the remainder equally split between KMG EP and KOGAS (37.5%/37.5%). Consortium members intend to conduct negotiations with the Government of the Republic of Iraq and sign the Akkas field development contract within the next few months.
The Akkas gas field is located in Anbar province, in the Western part of Iraq near the Syrian border. The Oil Ministry of Iraq estimates its gas reserves at 5.6 TSCF.
KMG EP Chief Executive Officer Kenzhebek Ibrashev said: "KMG EP actively participates in development of the oil and gas sector in Kazakhstan both by operating our own assets and by going into partnerships with other companies. At the same time we keep looking for attractive projects abroad. Iraq is one of the priority regions for us and we are happy to enter into a mutually beneficial cooperation with the Government of Iraq."
NOTES TO EDITORS
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The total volume of proved and probable reserves, as at the end of 2009 was 234mt (1.7bn bbl), including shares in the associates - about 2.2 bn barrels. The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. In December 2009, the International rating agency Standard & Poor's (S&P) assigned the Company a "GAMMA-6" rate and confirmed KMG EP's "BB+" corporate credit rating in July 2010.
KOGAS - Korea Gas Corporation is the world's largest LNG importer and the nation's sole LNG provider. KOGAS currently operates three LNG terminals and a nationwide pipeline network spanning over 2,739km.
For further details please contact us at:
KMG EP Public Relations (+7 7172 97 7600)
KMG EP Investor Relations (+7 7172 97 5433)
Pelham Bell Pottinger (+44 207 861 3147)
This document includes statements that are. or may be deemed to be. ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology. including. but not limited to. the terms ''believes''. ''estimates''. ''anticipates''. ''expects''. ''intends''. ''may''. ''target''. ''will''. or ''should'' or. in each case. their negative or other variations or comparable terminology. or by discussions of strategy. plans. objectives. goals. future events or intentions. These forward-looking statements include all matters that are not historical facts. They include. but are not limited to. statements regarding the Company's intentions. beliefs and statements of current expectations concerning. amongst other things. the Company's results of operations. financial condition. liquidity. prospects. growth. potential acquisitions. strategies and as to the industries in which the Company operates. By their nature. forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations. financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in. or suggested by. the forward-looking statements contained in this document. The Company does not intend. and does not assume any obligation. to update or revise any forward-looking statements or industry information set out in this document. whether as a result of new information. future events or otherwise. The Company does not make any representation. warranty or prediction that the results anticipated by such forward-looking statements will be achieved.
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