Kazakh state oil and gas company KazMunaiGas, or KMG, Thursday signed memorandums of understanding with France's Total SA (TOT) and Norway's Statoil ASA (STO) to jointly assess the exploration potential of hydrocarbons at two blocks in the Caspian Sea.
KMG and Total "will jointly assess the exploration potential of hydrocarbons on Zhenis block," which is in the southern part of the sea, 80 kilometers from the coast at a depth of 75-100 meters, KMG said in a statement.
Zhenis is forecast to have 615 million tons of oil equivalent, with anticipated recoverable oil reserves of 179 million tons.
KMG and Statoil "determined the Abai area as a potential project for co-operation in Kazakhstan," the Kazakh company said.
Abai is located in the northern section of the Kazakh part of the Caspian Sea, 65 kilometers from the coast, at a depth of 8-10 meters, KMG said.
"Under the memorandum of understanding, the parties plan to conduct evaluation of the hydrocarbon upstream potential both on the territory of the Republic of Kazakhstan and in other countries," KMG said.
"An additional condition for admission of Statoil to the Abai project is its participation in the organization of a drilling club with the interested potential users on the construction and operation of a jack-up type of drilling rig in the Kazakh sector of the Caspian Sea," KMG said.
"Total will also participate with KMG in setting up a Rig Club with interested potential users for use of a jack up drilling unit."