2010-09-28-2010-09-27

To buy Kazakh E&Ps NBK LLP from Eastern Gate and SapaBarlauService from Halyk Komir that develop Novobogatinskoe West Field.

Kazakhstan national oil company KazMunaiGas Exploration Production plans to acquire NBK LLP from Eastern Gate Management Ltd. for US$35 million and SapaBarlauService LLP from Halyk Komir LLP for $30 million.

The deals will be financed with KazMunaiGas' own funds.

NBK develops Novobogatinskoe West Field through a subsoil E&P contract expiring in 2027 with an option to extend. The field adjoins the license area of "Embamunaigas" and uses its existing infrastructure for oil treating, storage and transportation.

Currently, the field is at the production-testing stage. KazMunaiGas plans to merge the assets of NBK with the assets of Embamunaigas to synergize E&P.

SBS operates a subsoil exploration contract that expires at the end of 2012. This license area has significant exploration potential in subsalt structures. The company plans to drill a deep subsalt well.

The assets being acquired are in a close proximity to the assets of Kazakhoil Aktobe LLP and Kazakhturkmunai LLP, in which KazMunaiGas recently acquired interest.

KazMunaiGas chief executive Kenzhebek Ibrashev says, "KMG EP's exploration strategy and investment decisions, in particular related to drilling of subsalt wells, will be based on comparative analysis of the company's expanding exploration portfolio. Further to our recently announced acquisitions of shares in JSC Mangistaumunaigas, Kazakhturkmunai Ltd. and Kazakhoil Aktobe, we are pleased to announce the acquisitions of 100% stakes in NBK and SBS. These assets will enhance the quality of the company's onshore exploration portfolio and further strengthen our position as a top oil company in Kazakhstan."