2010-08-31-2010-08-31

The license carries an outstanding commitment to drill one further exploration well and the partners plan to drill this well in 2011.

Kazakstan-based JSC KazMunaiGas Exploration Production (KMG EP) plans to acquire a 35% working interest in production license P1722 in the U.K. Central North Sea from BG Group Plc in exchange for funding drilling costs ranging from US$25- to $30 million.

KMG EP will farm-in to the BG Group-operated license, which contains the White Bear prospect. The White Bear prospect is close to the BG Group's existing Everest and Armada producing assets. BG will retain the remaining interests and will continue to operate the license on behalf of the partners.

The license carries an outstanding commitment to drill one further exploration well and the partners plan to drill this well in 2011.

This is the first official venture between KMG EP and BG Group following the upstream co-operation agreement signed in December 2008.

KMG EP chief executive Kenzhebek Ibrashev says, "This agreement marks the first entry of KMG EP into international operations outside Kazakhstan. It follows our strategic aims of developing a selected portfolio of quality exploration and production assets, not only within Kazakhstan, which we are continuing to do, but internationally."

BG Group senior vice president, Central Asia, and president, BG Kazakhstan, Mark Rollins says, "We are pleased to have reached this agreement and we are confident that the transfer of an interest in the White Bear prospect to KazMunaiGas Exploration Production will result in a new era of beneficial cooperation for the strategic partnership between BG Group and the Republic of Kazakhstan."