Eurasia project participants held talks in Astana

ASTANA. KAZINFORM The first round of negotiations with the promising participants of the Eurasia project took place in Astana, the press service of the Energy Ministry informs.    

Minister of Energy of Kazakhstan Kanat Bozumbayev chaired the negotiations with JSC NC KazMunayGas, ENI, ROSNEFT, CNPC, SOCAR, NEOS Geosolutions companies.

According to experts, large-scale geological studies should be conducted to substantiate and start the geological explorations.

“The meeting participants highly appraised promising outlook of the project and expressed an intention to sign a memorandum of understanding aimed at negotiating the establishment of a Consortium and drafting a contract on geological studies,” a press release from the Ministry reads.

The implementation of the project will let: ensure oil and gas sector with stable resource base – some kind of a “strategic reserve” of hydrocarbons; avoid output decline which may occur within 15-20 years;  lay a foundation for ensuring the country’s energy security and be a defense mechanism in case of economic perturbations.

As per the project’s goal, a 15km super-deep well will be drilled in the Caspian Lowland. The project is estimated at $500mln and its implementation period will last till year 2020. The exploration will cover the territories of Atyrau, West Kazakhstan and Aktobe regions and adjusting regions of Russia – Astrakhan, Volgograd, Saratov and Orenburg regions.

From the Kazakh side, the initiators of the project are member of the Board of JSC KazMunayGas Uzakbay Karabalin, Advisor to Chairman of the National Bank Bolatbek Kuandykov and Director General of LLP PSA (belonging to JSC KazMunayGas) Kenzhebek Ibrashev.  The initiators promised to find 20 large and promising oil and gas resources whose reserves exceed 200-300mln tonnes. If the prediction of Eurasia project’s reserves turns out to be right, its total reserves will hit even the reserves of Kashagan deposit.