Zhemchuzhiny (the pearls)

On December 14, 2005 the Ministry of Energy and Mineral resources of the Republic of Kazakhstan, “Oman Pearls Company Limited” and JSC “National Company “KazMunayGas” completed the Production Sharing Agreement with respect to Zhemchuzhiny contract area located in Kazakhstan sector of the Caspian sea; under the agreement participatory interests were allocated as follows: “Oman Pearls company Limited” — 75%; JSC NC “KazMunayGas” — 25%.

An Additional Agreement to the Production Sharing Agreement was signed on December 28, 2005 under which “Oman Pearls Company Limited” assigned 55% participatory interest in PSA in favor of Shell RD Offshore Ventures Limited Company.  

On September 8, 2006 the rights to subsoil use under the Production Sharing Agreement with respect to Zhemchuzhiny contract area were transferred in full from JSC NC “KazMunayGas” to JSC OOC “KazMunayTeniz”. 

On January 8, 2007 a joint operating company “Caspian Meruerty Operating Company B.V.” was registered in the territory of the Kingdom of the Netherlands. Participating interests in the charter capital of the joint operating company were allocated as follows: JSC OOC “KazMunayTeniz” — 40%, “Shell RD Offshore Ventures Limited” — 40%, “Oman Pearls Company Limited” — 20%.

A branch of the “Caspian Meruerty Operating Company B.V.” in Aktau city was registered on April 11, 2007 in the Justice Department of Mangistau Oblast. 

A share of “KazMunayTeniz” in the project is financed by its partners: “Shell RD Offshore Ventures Limited” and “Oman Pearls Company Limited”. 

Works completed under the Project:

• HF 2D-Seismic Survey, scope — 102 linear km (2007);
• 3D-Seismic Survey, scope — 900 square meters (2008–2009);
• Geological and Engineering Survey of Tulpar and Naryn Structures in the scope of 433 and 344 linear km, correspondingly (2009);
• Construction of Hazar-1 Exploration Well, depth — 2118 m (2007);
• Construction of Auezov-1 Exploration Well, depth — 2465 m (2008);
• Construction of First Appraisal Well — Hazar-2, depth — 2023 m (2009).
• Geological and Engineering Survey Prior to Drilling Hazar-3 and Tulpar-1 Wells;
• Construction of Hazar-3 Appraisal Well (2010);
• Construction of Tulpar-1 Exploration Well (2010);
• Completed Regional POS-Interpretation of Geology and Geophysics Data of Paleozoic Deposit on the License Area of Zhemchuzhiny

Current Activities

• Placing Reserves of Hazar Field on the State Balance Sheet, RK.
• Selection of the concept of setting Hazar Field.

Further Plans

• Construction of Naryn-1 Exploration Well (2012);
• Transition to the Production and Development Stage on Hazar Field;
• Continuing Exploration and Appraisal Works on Auezov Structures;
• and Naryn.

Implementation of social obligations in accordance with the provisions of the Production Sharing Agreement:

• Professional education of Kazakhstan specialists: funds committed no less than 1% of the annual budget in exploration period, and 1% of lifting expenses in production period.  
• Financing of social projects: no less than 1% of the annual budget, or no less than USD 500 thous. per year, whichever is larger.