KazMunaiGas EP to start drilling at White Bear block in H2 2011
ALMATY. May 17 (Interfax) - JSC KazMunaiGas Exploration Production (KMG EP) plans to start drilling an exploration well at White Bear block in the North Sea in the second half of 2011, said KMG EP business development director of Dastan Adbulgafarov.
"We have scheduled drilling for the second half of this year. We look forward to its success," he said at the annual event, "RD Open."
KazMunaiGas EP and BG signed an agreement on joint exploration of the White Bear prospect in the Central North Sea. KMG EP is acquired a 35% interest in the license.
The agreement marked the first official venture between KMG EP and BG Group under the terms and conditions of the Upstream Co-operation agreement signed in December 2008.
The transfer of an interest meets terms and conditions of the cooperation agreement signed in 2008. KMG EP farm-in financial risks including drilling costs and other project liabilities at the HC pre-discovery stage are estimated at USD 25-30 million.
The White Bear prospect, within the P1722 license, is located close to the BG Group's existing Everest and Armada producing assets. BG will retain the remaining interests and will continue to operate the license on behalf of the partners.