STAVANGER, Norway, March 31 (UPI) -- Norwegian energy company Statoil said it was set to establish a joint company with KazMunayGas to explore for hydrocarbons in the Caspian Sea.
Statoil and KazMunayGas signed a heads of agreement contract to explore the hydrocarbon potential of the Abay block in the north of the Caspian Sea.
The companies will set up a company to serve as the operator of the project, Statoil said in a statement.
The Norwegian company will give its Kazakh partners financial and technical assistance to build, own and operate a rig for work in the region.
"This agreement marks an important milestone in Statoil's re-entry into Kazakhstan and I am very pleased that we have strengthened our partnership with KazMunayGas," said Tim Dodson, executive vice president for exploration at Statoil, in a statement.
Exploration work entails seismic surveys and drilling of one exploration well.
The Abay block is about 40 miles off the coast of Kazakhstan in shallow water.
