Mobil Corporation Forms Joint Venture in Kazakhstan

Strategic Insights -

Mobil Corporation's affiliate, Mobil Oil Tulpar Inc., has signed a joint venture agreement and exploration and development contract with the government of Kazakhstan to explore for oil and gas on the four-million-acre Tulpar block in northwestern Kazakhstan. The joint venture, Tulpar Munai Ltd., will be managed and staffed jointly by representatives from Mobil and three Kazakh state companies. Mobil will hold a 50% interest in the venture, while the three Kazakh companies will collectively hold the other 50% interest.

Key Takeaways:

  • Mobil Corporation's affiliate, Mobil Oil Tulpar Inc., has formed a joint venture with three Kazakh state companies to explore for oil and gas on the four-million-acre Tulpar block in northwestern Kazakhstan.
  • The joint venture, Tulpar Munai Ltd., will be managed and staffed jointly by representatives from Mobil and the three Kazakh companies.
  • Mobil will hold a 50% interest in the venture, while the three Kazakh companies will collectively hold the other 50% interest.
  • Mobil Chairman Lucio A. Noto believes Kazakhstan is an area of enormous potential and that the country's commitment to economic reform and an open market economy is creating favorable investment opportunities for foreign companies.
  • The joint venture is a significant step for Mobil in its expansion into the Kazakhstan market, where it already has an additional venture as the only U.S.-based member of the Caspian Sea Consortium.
  • Mobil's technical, financial, and management strengths make it a valuable, long-term partner for Kazakhstan.

Statistics:

  • Four-million-acre area to be explored for oil and gas in the Tulpar block.
  • 50% interest held by Mobil in the joint venture Tulpar Munai Ltd.
  • 50% interest collectively held by the three Kazakh companies in the joint venture.
  • 1997 estimated completion year for the comprehensive seismic survey being conducted by the Caspian Sea Consortium.

Sources:

  • "Mobil Corporation Forms Joint Venture in Kazakhstan" - PRNewswire (April 17, 1995)
  • "Mobil" - New York Stock Exchange (NYSE: MOB)
  • John Lord or Gail Campbell Woolley of Mobil, 703-846-2500