Caspian Sunrise advances Block 8 acquisition

Published 01/05/2025, 07:48
Caspian Sunrise advances Block 8 acquisition

LONDON - Caspian Sunrise PLC, an oil and gas exploration company, has announced progress on its acquisition of the Block 8 Contract Area and the ongoing disposal of the MJF and South Yelemes shallow structures within the BNG Contract Area.

The Block 8 Contract Area, approximately 160 km from the group’s main BNG Contract Area, spans 2,823 sq. km and includes three structures. Caspian Sunrise exercised an option in September 2023 to acquire EPC Munai LLP, which held three licenses for Block 8, for $100 plus a royalty of $5 per barrel of oil produced, capped at $60 million.

A key condition for the acquisition was the renewal of these licenses. The Sholkara structure’s license has been renewed, but the Akkaduk structure’s license renewal has encountered delays due to processing issues between two ministries. The company has expressed its disinterest in renewing the Toresay license. Caspian Sunrise is proceeding with the acquisition based on the Sholkara license while continuing legal efforts to renew the Akkaduk license.

Regarding the BNG shallow structures, shareholders approved the sale in September 2024 for $88 million. Although the extended deadline for the sale has passed as of April 1, 2025, both parties are actively seeking to complete the transaction, pending regulatory approvals.

As the company moves towards completion of these transactions, further updates will be communicated to the market. This announcement, based on a press release statement, indicates that Caspian Sunrise is navigating regulatory challenges to progress with its strategic operations in Kazakhstan.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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