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” signed the Production Sharing Agreement with respect to “Pearls” 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 Pearls contract area were transferred in full from JSC NC “KazMunayGas” to JSC OOC “KazMunayTeniz”. 

On January 8, 2007 a joint operating company “Caspi 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 “Caspi 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”.

Social obligations

• 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.

Works completed under the Project:

• HF 2D-Seismic Survey, scope — 102 linear km (2007);
• 3D-Seismic Survey, scope — 900 square km (2008–2009);
• Geological and Engineering Survey of Tulpar and Naryn Structures in the scope of 433 and 344 linear km, respectively (2009);
• Construction of Khazar-1 Exploration Well, depth — 2118 m (2007);
• Construction of Auezov-1 Exploration Well, depth — 2465 m (2008);
• Construction of First Appraisal Well — Khazar-2, depth — 2023 m (2009).
• Geological and Engineering Survey prior to Drilling Khazar-3 and Tulpar-1 Wells;
• Construction of Khazar-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 Pearls

Current Activities

• Completed further study of the options for the design of steel multisupporting structure according to Russian experience, designed for Khazar field infrastructure development.
• Preparation to investigate opportunities to reduce the risks associated with the concept of hydraulic engineering metalwork for "Khazar" field infrastructure development of the licensed unit " Pearls”.
• Report prepared for reserves estimate and Feasibility study of oil recovery factor (FS CIN) in Khazar field, scheduled its further submission to the RK State Committee on Mineral Reserves after the selection of the concept of infrastructure development and development. In addition, gas export options are under consideration.

Further Plans

• Preparation and submission of the report on reserves estimate of FS CIN.
• Drilling of the exploration well Naryn-1 in 2012 in case of available free drilling rig.
• The development of Khazar field infrastructure development project.