ALMATY: KazMunaiGas Exploration Production said on Monday it had agreed with its parent company KazMunaiGas to acquire four of its hydrocarbon exploration contracts for a total of $40 million.
KMG EP acquires the following four contracts:
Temir, Teresken, Karaton-Sarkamys and the territory adjacent to Uzen and Karamandybas, the company said in a disclosure statement.
"According to the Company's estimates, the geological resources on the four blocks are around 1.5 billion barrels of oil equivalent," it said.
London-listed GMG EP, Kazakhstan's second-largest oil producer, said the deal would be financed from its own funds.
"The acquisition of these contracts is another step towards the implementation of the company's strategy to grow via acquisitions and expansion of exploration," KMG EP quoted its CEO Askar Balzhanov as saying.
"The company will continue its search for highly promising assets, acquisition of which will serve the interests of all shareholders."
KMG EP said last Friday its oil output was 3.17 million tonnes, or 259,000 barrels per day, in the first three months of 2011, or 0.3 percent below the level of the same period of 2010.
The company raised crude oil output 16 percent last year to 13.29 million tonnes, or 270,000 barrels per day, mainly due to its December 2009 acquisition of a 33 percent stake in PetroKazakhstan Inc, majority owned by China's state-run CNPC.
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