Total To Invest $70 Million In Petrolinvest's Kazakhstan
17.03.10, 12:51 Uhr |
Lesezeichen
|
Versenden
WARSAW -(Dow Jones)- French oil major Total SA (TOT) will invest $70 million to finance drilling works of the Polish oil company Petrolinvest (OIL.WA) in Kazakhstan, Petrolinvest said Wednesday.
Under an agreement signed by Total E&P Koblandy and Petrolinvest, the French company will acquire 50% of the OTG license owned by Petrolinvest.
As a result, Petrolinvest and Total will jointly manage the OTG license.
Another of Petrolinvest's license in Kazakhstan, EmbaYugNeft, will be operated jointly with Poland's gas monopoly Polskie Gornictwo Naftowe i Gazownictwo SA (PGN.WA), PGNiG said in a statement Wednesday.
In November last year, PGNiG and Petrolinvest signed a framework cooperation agreement on oil exploration in Kazakhstan.
Petrolinvest shares soared on the news. At 0821 GMT, Petrolinvest traded up 23% at PLN40.80.
This comes after last week's rise in the wake of a decision by the European Bank of Reconstruction and Development to grant a $50 million convertible loan to Petrolinvest to finance the completion of drilling works in Kazakhstan.
Over the course of the week, Petrolinvest's shares rose 74%.
Petrolinvest holds five exploration licenses in Kazakhstan through subsidiaries.
The company has already invested $340 million in drilling and exploration in Kazakhstan but hasn't started commercial oil output to date.
The company estimates its hydrocarbon reserves in Kazakhstan contain over 2 billion barrels of oil equivalent.
As a result, Petrolinvest and Total will jointly manage the OTG license.
Another of Petrolinvest's license in Kazakhstan, EmbaYugNeft, will be operated jointly with Poland's gas monopoly Polskie Gornictwo Naftowe i Gazownictwo SA (PGN.WA), PGNiG said in a statement Wednesday.
In November last year, PGNiG and Petrolinvest signed a framework cooperation agreement on oil exploration in Kazakhstan.
Petrolinvest shares soared on the news. At 0821 GMT, Petrolinvest traded up 23% at PLN40.80.
This comes after last week's rise in the wake of a decision by the European Bank of Reconstruction and Development to grant a $50 million convertible loan to Petrolinvest to finance the completion of drilling works in Kazakhstan.
Over the course of the week, Petrolinvest's shares rose 74%.
Petrolinvest holds five exploration licenses in Kazakhstan through subsidiaries.
The company has already invested $340 million in drilling and exploration in Kazakhstan but hasn't started commercial oil output to date.
The company estimates its hydrocarbon reserves in Kazakhstan contain over 2 billion barrels of oil equivalent.
DJG/sch
