October 5, 2008 / 5:02 PM / 11 years ago

UAE's Mubadala, Conoco agree Kazakh deal

ABU DHABI, Oct 5 (Reuters) - The UAE’s Mubadala Development Co said on Sunday it has signed a preliminary deal with U.S. major ConocoPhillips (COP.N) and Kazakhstan’s state energy firm to develop an offshore Kazazh oil and gas block.

Conoco and Abu-Dhabi government-owned investment agency Mubadala will each hold a 24.5 percent stake in the offshore Kazakh block in the Caspian Sea, Mubadala said.

Kazakh state oil and gas firm KazMunaiGas KMG.UL will hold the majority stake.

Conoco and Mubadala have until the end of the year to finalise the terms of the contract for Kazakhstan’s “N” block, Mubadala said.

Conoco won a contract earlier this year with government-owned Abu Dhabi National Oil Company (ADNOC) for a $10 billion-plus project to develop sour gas reserves in the emirate.

Abu Dhabi leads the seven-member United Arab Emirates, and holds over 90 percent of the UAE’s oil reserves. The UAE is the world’s fifth-largest oil exporter.

Abu Dhabi already has big plans for investment in Kazakhstan.

Government-owned IPIC and Kazakhstan launched a $1 billion fund to invest in energy and other sectors in July. IPIC also plans to develop a $5 billion-plus petrochemical project in Kazakhstan.

Reporting by Stanley Carvalho; Editing by Erica Billingham

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