Press-release concerning works on construction of the second exploration well on «Kurmangazy» contract area

On the 26th of March, 2009 «Kurmangazy Petroleum» LLP, being the Operator of «Kurmangazy» project, starts works on construction of the second exploration well on «Kurmangazy» contract area.

«Kurmangazy» contract area is situated in north-end of Kazakhstani sector of the Caspian Sea, 80km to the North-West from Bautino port. The area of the territory is 3512m2. Sea depth in operations area is 5 — 5,5m.
The purpose of construction of the second exploration well is revised geological model of «Kurmangazy» contract area and search of oil and gas accumulations in chalk-stone and Jurassic deposits.
The drilling contractor is ««„BKE Shelf“ LLC with the usage of „Astra“ self-elevating drilling rig (SEDR). The drilling will be performed according to „Technical project for construction of exploration well № 2 on Kurmangazy structure“, developed by „Nedra“ Consulting center» LLP and EIE (estimation of the influence on the environment), agreed by Authorized State bodies of the Republic of Kazakhstan and approved by the Ministry of energy and mineral resources of the Republic of Kazakhstan.

On the 26th of November, 2008 in Aktau city «Kurmangazy Petroleum» LLP carried out Public consultations concerning the project of estimation of the influence on the environment of exploration well № 2 construction on «Kurmangazy» contract area. This measure is a mandatory procedure, preceding State ecological expertise and corresponds to the requirements of national and international environmental protection legislation concerning providing of public access to the information, and public participation in the process of decision making concerning the issues of environmental protection. In accordance with public consultations, positive decision with the approval of EIE project during construction of exploration well № 2 was taken.

The drilling rig is equipped with modern main and supplemental drilling equipment, means of mechanization, automation and technological process control. All production and domestic waste will be taken out on the shore and recovered on specialized area.
«Kurmangazy» structure is situated in preserved area of the Caspian Sea, in consequence of which ecological issues have primary importance. In the period of work performance constant ecological monitoring of environmental state will be performed. During drilling and testing of the well modern technique and advanced technologies that exclude possibility of environment contamination will be applied. In accordance with the requirements of acting Kazakhstani legislation drilling works will be performed according to the principle of «zero discharge». All risks of drilling, including ecological, are insured.

Plan of safe work performance is developed. Presence of means and equipment for prevention of outflows at the surface of the sea, localization and liquidation of emergency situation is provided. General integral action on the environment of planning construction of exploration well № 2 is estimated as not falling outside the range of the low level.
Realization of the development plan of «Kurmangazy» contract area corresponds to «the State program of exploration of Kazakhstani sector of the Caspian Sea», approved by the Order of the President of the Republic of Kazakhstan dated from the 16th of May, 2003. Oil operations on «Kurmangazy» contract area are performed in accordance with Production Sharing Agreement (PSA), signed on the 6th of July, 2005 between the Ministry of energy and mineral resources of the Republic of Kazakhstan on the one part and «KazMunayTeniz» JSC OOC and «RN — Kazakhstan» LLC, on the other part .

Duration of a cycle of works on well drilling at target depth 1600m and testing will take 73 days.