HOUSTON -- KazMunayGas (KMG), ConocoPhillips, and Mubadala Development Co. (Mubadala) have signed a Memorandum of Understanding to negotiate terms for the exploration and development of the N block, offshore Kazakhstan, under a new subsoil use contract.
The parties will now have until Dec. 31 to negotiate the definitive agreements for the assignment by KMG of a 49% interest in the subsoil use contract to be shared equally between ConocoPhillips and Mubadala. KMG will remain the majority partner in the venture.
The N block is located 30 km (18.6 mi) south southwest offshore Aktau, Kazakhstanin in the Caspian Sea. The block covers approximately 8,100 sq km (3,127 sq mi) and is considered highly prospective for both oil and gas.