Korean corporation to abandon the oil project in Kazakhstan

Almaty. August 8. Silkroadnews – Korean National Oil Corporation (KNOC) intends to give up its stake in the Zhambyl oil project in the Caspian Sea, KazTAG reports with reference to Indian Express newspaper.

“Korean National Oil Corporation (KNOC) is in talks with the Kazakhstan government to pull out of an oil field project due to disappointing exploration results”, the publication says.

According to KNOC spokesman, the oil reserves in the field turned to be lower than expected.

Since 2008 KNOC, as reported, has invested $250 million into the project.

“KNOC heads a Korean consortium which holds 27 percent of Kazakhstan’s Zhambyl oil block on the coast of the Caspian Sea. The group has invested a total of about $250 million on acquiring the stake and exploration since 2008. KNOC also holds a 9.45 percent interest in the joint operation for the oil field. KNOC’s spokesman said the consortium would abandon its stake if the talks were finalized, having initially acquired it for $85 million”, the newspaper notes.

Remaining part of the oil block, according to the publication, is owned by “KazMunayGas” company.