KazMunayGas, and Tatneft start drilling first exploration well at Karaton Podsolevoy block

ASTANA. Nov 25 (Interfax) - Kazakhstan's KazMunayGas (KMG) and Russia's Tatneft have started drilling the first exploration well at the Karaton Podsolevoy block in Kazakhstan, KMG said.

The well's planned depth is 5,500 meters.

The ceremony to launch the drilling was attended by KMG CEO Askhat Khasenov, Tatneft General Director Nail Maganov and KMG First Deputy CEO Kurmangazy Iskaziyev.

"The launch of drilling at Karaton Podsolevoy is a milestone in bolstering Kazakhstan's resource base. This project highlights our dedication to strategic priorities aimed at expanding reserves and exploring complex subsoil areas. We are confident that our collaboration with Tatneft will deliver impactful results and play a key role in enhancing the country's oil and gas potential," Khasenov said.

In February 2024, the two companies signed an agreement for Tatneft to acquire a 50% stake in Karaton Operating Ltd., the operator of the Karaton Podsolevoy project. The agreement also includes a shareholder agreement and financing terms for the Karaton Podsolevoy project.

The Karaton Podsolevoy block is part of the broader Karaton-Sarkamys project in western Kazakhstan, outlined in a memorandum of intent signed by KMG and Tatneft in June 2022. Located in the Atyrau and Mangistau regions, the block is near the operating fields of Tengiz, Korolev and Embamunaigas fields. Its geological resources are estimated at 353 million tonnes of oil, with a 50% probability of confirmation.

The project, requiring an estimated $2.4 billion in investments, will follow a carry-financing model. Under this arrangement, Tatneft will cover exploration costs, bearing the risk if the well is dry. If successful, costs will be reimbursed through production revenues.