On the commencement of first exploration well drilling on Atashskiy area

«Atash Company» LLP announced the commencement of the first exploration well drilling on Atashskiy area.
Drilling jack up rig Astra will be used to drill the well with the depth of 2 500 m. Construction works on this well will last about 100 days.

«Atashkiy» area located in the central part of the North Caspian Sea contains such structures as «Atash», «Kazakhstan» and «Maral». To assess oil and gas potential, seismic, electric and engineering works were carried out in 2004-2006 in this area.

The 2007 public hearings on «Environmental Impact Assessment of the first exploration well Atash» resulted in approving the intentions of «Atash Company» LLP to construct the exploration well.

Drilling operations will be carried out in compliance with the environmental laws of the Republic of Kazakhstan and will adhere to the zero discharge principle with a minimum impact on the ecosystem of the Caspian Sea.

Drilling Contractor will transfer all industrial and domestic wastes to the onshore base for their further treatment. Emergency Action Plan has been developed to prevent and response to emergencies including skimming. Environment will be constantly monitored during drilling operations.

On December 29, 2003 a Contract for exploration of Atashkiy area was made between Ministry of Energy and Mineral Resources of the Republic of Kazakhstan and JSC NC «KazMunayGas».

In 2004 the subsoil use rights of JSC NC «KazMunayGas» were assigned to «Atash Company» LLP, the founders of which are JSC OOC «KazMunayTeniz» and «LUKOIL Overseas Shelf  B. V.».

JSC OOC «KazMunayTeniz», established on March 14, 2003 is a 100% subsidiary of JSC NC «KazMunayGas».

«LUKOIL Overseas Shelf  B. V.», a 100% subsidiary of «LUKOIL Overseas Holding Ltd», was established to implement oil projects on the shelf of the Caspian Sea.