Stay Connected

TotalFinaElf to buy Statoil's Kazakhstan holding


LONDON�French energy giant TotalFinaElf SA Monday said it would buy Statoil AS's 4.76% share of the potentially large Kashagan oil discovery off Kazakhstan, making it the largest shareholder in the development.

Should the deal be finalized, TotalFinaElf would have a 28.6% interest in the Offshore Kazakhstan International Operating Co. (OKIOC) consortium exploring in the Kazakhstan sector of the Caspian Sea.

A spokesman said although the deal was still preliminary, enlarging its holding in Kazakhstan, and specifically the "very promising" Kashagan development, was "in keeping with TotalFinaElf's strategic plans" for the region.

TotalFinaElf has been in Kazakhstan since 1993 when it inked a deal with the Caspian Sea Consortium to conduct geophysical surveys offshore. The company last week bought BP PLC's 9.5% holding in OKIOC, a stake some analysts at the time calculated to be worth around $400 million.

Statoil Regional Vice-Pres. for the Caspian Rolf Magne Larsen said the agreement with TotalFinaElf accorded with its international upstream strategy of "focusing personnel and resources on core assets and areas with operator potential.

"Even with the huge discovery, the position on Kashagan does not meet our criteria for maturity and governance," emphasized Larsen, "because our ownership interest is too small."

Larsen added that the divestment of its OKIOC holding did not change Statoil's strategy for the region.

"The Caspian remains a principal priority area for us," he said.

Determining the size of the Kashagan discovery has been difficult, but reserves estimates range from 25�60 billion bbl. A second exploration well was spudded last October, and appraisal should take place early this summer.

Partners in OKIOC are Agip SpA, BG PLC, ExxonMobil Corp., Royal Dutch/Shell Group, Phillips Petroleum Co., and Inpex Masela Ltd.

Last October TotalFinaElf was chosen by the Kazakhstan government to undertake a feasibility study for a "southern route" pipeline to transport oil from Kashagan field via Turkmenistan to Iran. The proposed export line, the Kazakh Turkmen Iran Oil Pipeline, would cost $1.6 billion to construct and would carry 500,000 b/d to refineries in northern Iran. Capacity could be raised to 1 million b/d at a cost of a further $500 million. TotalFinaElf had no progress update on this study.

Related Articles

McDermott wins Middle East offshore field expansion contract

Nov 27, 2013

McDermott International has won an EPCI contract valued at around $200 million for an offshore project in the Middle East.

Occidental contracts third offshore Qatar jackup

Nov 27, 2013

Occidental Petroleum of Qatar has signed a contract to take Gulf Drilling International’s newest jackup for a five-year program.

Trending News

Oil & Gas UK comments on Scottish referendum result

Sep 19, 2014

In light of the “No” vote in the Scottish referendum, Oil & Gas UK says that it looks forward to continuing working closely with both the UK and Scottish governments toward the shared ambition of maximizing economic recovery of the UK’s offshore oil and gas resource.

Searcher Seismic begins 2D survey offshore Philippines

Sep 19, 2014

Searcher Seismic, in cooperation with the Philippines Department of Energy, and in conjunction with SeaBird Exploration, has begun its Mialara 2D seismic survey, east of Palawan in the Philippines.

FPSO Petrojarl Knarr arrives in Norway

Sep 19, 2014

The FPSO Petrojarl Knarr left South Korea and has successfully arrived in Norway.

Petrobras inks deal for Libra FPSO

Sep 19, 2014

Petroleo Brasileiro SA ( Petrobras) will sign a contract to build and lease a floating production ship for the Libra project.  

EMGS secures new survey work in Norwegian Sea

Sep 19, 2014

Earlier this month, Electromagnetic Geoservices ASA (EMGS) secured an agreement from Statoil Petroleum AS for its services in the Norwegian Sea. EMGS has now received a new contract from another oil and gas company worth $1 million for acquisition of 3D EM data in a nearby area.

  Offshore
Digital Magazine
Look Inside
Cover
Current Issue

Oil & Gas Jobs

View more Job Listings >>