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

DNO reports oil shows from Jawhara appraisal well offshore Tunisia

Jan 2, 2015

Drilling has concluded on the Jawhara-3 well in Tunisia’s Sfax offshore exploration permit, according to operator DNO.

Iran to redevelop offshore Hendijan field

Jan 2, 2015

Development is progressing to expand facilities at the Hendijan oil field in the northwestern Persian Gulf, according to Iranian news service Shana.

Israel blocks passage of Leviathan proposals

Dec 30, 2014

Israel’s Anti-Trust Authority has decided not to submit a Consent Decree concerning the offshore Leviathan gas field to the country’s Anti-trust Tribunal.

Nexans dispatches first Shah Deniz Stage 2 DEH cables

Dec 18, 2014

Nexans has delivered its first subsea direct electrical heating (DEH) system consignment to BP for use in the Shah Deniz Stage 2 project in the Azeri sector of the Caspian Sea.

NDC receives latest newbuild jackup

Dec 18, 2014

Lamprell has completed construction of the jackup Shuwehat within budget, and has delivered the rig to Abu Dhabi’s National Drilling Co. (NDC).  

Trending News

Development planning progresses at Gazelle offshore Côte d’Ivoire

Jan 30, 2015

Azonto Petroleum says the Côte d’Ivoire government has approved a revised development plan for the shallow-water Gazelle field.

Norway issues permits for Vega transfer, Barents Sea well

Jan 30, 2015

Petroleum Safety Authority Norway has sanctioned Wintershall Norge’s use of the subsea production facilities on the Vega field in the Norwegian Sea.

Total prolongs contract for accommodation vessel offshore West Africa

Jan 30, 2015

Exmar says Total has signed an extension of its contract for the accommodation barge OTTO 5 until mid-2017.

Price squeeze will impact deepwater Africa ambitions, analyst claims

Jan 30, 2015

Wood Mackenzie predicts a 30% reduction in spending on exploration and appraisal offshore Africa this year.

EMGS secures Barents Sea 3D data deal

Jan 30, 2015

Electromagnetic Geoservices (EMGS) has a data licensing agreement with an unnamed oil company to supply 3D EM data for Norway’s 23rd licensing round in the Barents Sea.

  Offshore
Digital Magazine
Look Inside
Cover
Current Issue

Oil & Gas Jobs

Search More Job Listings >>