6 Oct 2009 11:50

KazMunayGas, Total and GDF ink Khvalynskoye oil deal

ASTANA. Oct 6 (Interfax) - KazMunayGas, Total and GDF Suez signed an agreement on the principles of the joint development of the Khvalynskoye oil field in the Caspian Sea during French President Nicola Sarkozy's visit to Astana on Tuesday.

Kazakhstan and Russia signed a protocol to the 1998 agreement on the Caspian's demarcation in May 2002. Khvalynskoye, as well as the Tsentralnaya section fell under Russian jurisdiction, and the Kurmangazy block under Kazakhstan's. The countries agreed to develop the fields on a parity basis.

Khvalynskoye was recognized as an oil field in 2002. It is located in 260 kilometers from the Russian city of Astrakhan at a depth of 25-30 meters.

KazMunayGas and Russia's Lukoil signed an agreement to create the Caspian Oil & Gas Company to develop the field in 2005.

The company has identified four gas condensate beds and one oil bed as the result of 3D surveying and drilling. The Russian Natural Resources Ministry has approved C1+C2 reserves of 332 bcm gas, 17 million tonnes condensate and 36 million tonnes oil.