2009-10-28-2009-10-06

To acquire 25% WI in Khvalynskoye Field offshore Caspian Sea in Kazakhstan.

French companies Total (London: TTA) and GDF Suez plan to acquire a 25% interest in Khvalynskoye Field offshore in the Caspian Sea from Kazakhstan national oil company KazMunaiGas for an undisclosed price. Reuters reports that Total chief executive Christophe de Margerie said the two companies together will invest about US$1 billion into the project for their interests. Khvalynskoye Field is on the border between Kazakhstan and Russia. Total will acquire a 17% participation in the development of the field and GDF Suez will acquire a participation of 8% from the initial 50% stake held by KMG. Khvalynskoye is a conventional gas condensate field in water depths of 25 meters which will be developed by Russian company Lukoil, which holds 50% and is operator. The gas produced from this field will be transported to Russia. "This agreement provides the opportunity for Total to further strengthen its ties with KazMunaiGaz, with whom the group is already a partner on the Kashagan project in Kazakhstan," says Total president, exploration and production, Yves-Louis Darricarrère. "Total will bring to the Khvalynskoye's partners the company's know-how in developing offshore projects in order to successfully develop the field."