KazMunayGas, Tatneft to start geological exploration at Karaton Podsolevoy block in Nov

ASTANA. Oct 31 (Interfax) - Kazakhstan's KazMunayGas (KMG) and Russia's Tatneft will start geological exploration at the Karaton Podsolevoy block in November.

Askhat Khasenov, CEO of KMG, and Nail Maganov, the general director of Tatneft, have discussed preparations for drilling the first exploratory well at the Karaton Podsolevoy block, KMG said in a press release.

"Drilling equipment is being deployed on the site. Drilling operations are set to begin in November 2024," the press release says.

The depth of the exploratory well will be 5,500 meters, according to KMG.

Khasenov and Maganov also discussed prospects for cooperation in the petrochemical industry.

On February 21 of this year, the companies signed a purchase and sale agreement stipulating the acquisition by Tatneft of a 50% stake in project operator Karaton Operating Ltd., a shareholders agreement and financing agreement for the Karaton Podsolevoy project.

In June 2022, KMG and Tatneft signed an agreement of intent to jointly implement the Karaton-Sarkamys project in western Kazakhstan. The site is located in the Atyrau region near the operating fields of Tengiz, Korolev and a group of fields of Embamunaigas JSC.

It was reported that investment in the project could amount to $2.4 billion, on terms of carry-financing from Tatneft. This principle means that at the geological exploration stage the costs are borne by the investor: if the well turns out to be dry, then this risk will be on the Russian company, but if the well gives a positive result, the costs will be compensated.