ExxonMobil Announces Discovery in North Caspian Sea.Business Editors
IRVING, Texas--(BUSINESS WIRE)--July 24, 2000
Exxon Mobil Corporation Exxon Mobil Corporation
U.S.-based oil and gas company formed in 1999 through the merger of Exxon Corp. and Mobil Corp. It has investments and operations in petroleum and natural gas, coal, nuclear fuels, chemicals, and ores. (NYSE NYSE
See: New York Stock Exchange :XOM) announced today a world-class discovery at the Kashagan East 1 well, located 47 miles (75 kilometers) southeast of Atyrau in the North Caspian Sea. This represents the first discovery on the Kazakhstan shelf.
The discovery well encountered an oil-bearing interval in the Palaeozoic Carbonates below 13,000 feet (4,000 meters). Two tests have been planned, and one test has been completed. The lower test section flowed at a rate of up to 3,700 barrels (600 cubic meters) of oil per day and 7 million cubic feet (200,000 cubic meters) of gas per day on a 32/64" choke. Oil gravity measured at the well-site ranged between 42 and 44 degrees API. The well was drilled in 10 feet (3 meters) of water to a total depth of nearly 16,400 feet (5,200 meters).
Kashagan East 1 is the first well drilled by the Offshore Kazakhstan International Operating Company (OKIOC OKIOC Offshore Kazakhstan International Operating Company ) on behalf of a consortium of nine international shareholders. ExxonMobil holds a 14.3 percent interest in OKIOC.
Drilling activities at Kashagan West, a second exploration location 25 miles (40 kilometers) from the Kashagan East location, will be commenced in the fourth quarter of the year. Plans for further appraisal of the structure are being progressed.
ExxonMobil participates in a production sharing agreement Production sharing agreements (PSAs) are used primarily to determine the share a private company will receive of the natural resources (usually oil) extracted from a particular country. (PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. ) that covers almost 1.4 million acres in Kazakhstan's sector of the Caspian Sea area. In addition, ExxonMobil affiliates have a 25 percent interest in the Tengiz field, one of the world's largest oil fields, located on the eastern shore of the Caspian Sea and a 7.5 percent interest in the Caspian Pipeline Consortium The Caspian Pipeline Consortium is an international consortium of 1,510-kilometer long oil pipeline from Tengiz field to the Novorossiysk-2 Marine Terminal on Russia’s Black Sea coast. It also major export route for the oil from Kashagan and Karachaganak fields. .
For additional information about ExxonMobil, visit the company's Web site at www.exxon.mobil.com.