KazMunayGas (KMG) National Company and Shell (SPB: RDS.A) Kazakhstan signed a memorandum of understanding for the development of Kazakhstan’s oil and gas industry on mutually beneficial terms, the KMG press office said in a statement.
The document was signed by KMG Management Board Chairman Magzum Mirzagaliyev and Senior Vice President and Chair of Shell Kazakhstan Herman Burmeister.
Under the document, the sides expressed their intention to cooperate in the following areas: exploration and development, including a comprehensive geological study of promising areas and geological study of subsoil in Kazakhstan, synergy and opportunities for the joint development of projects in Kazakhstan and analysis of the latest trends in the extractive industry in terms of conclusion of contracts and procurement, environmental standards and similar aspects of regulation that can potentially improve and speed up growth opportunities in Kazakhstan.
“The signing of the memorandum of understanding will make an additional contribution to strengthening the strategic partnership and interaction between our companies. We hope to use the rich experience of the Shell concern in implementing joint projects in various areas of the oil and gas industry in Kazakhstan,” Mirzagaliyev was cited as saying in the statement.
KazMunayGas National Company is the national operator for exploration, production, processing and transportation of hydrocarbons. The company represents state interests in the oil and gas sector of Kazakhstan.
In Kazakhstan Shell owns stakes: 16.81% in the Kashagan oil field operator – North Caspian Operating Company (NCOC) through Shell Kazakhstan, 29.25% in Karachaganak Petroleum Operating (KPO) – a consortium developing the Karachaganak gas condensate field through BG Karachaganak Limited, (7.4%) in the Caspian Pipeline Consortium (CPC).