TotalFinaElf (14.28%) and its partners from Offshore Kazakhstan International Operating Company (OKIOC) today announced an important discovery at the Kashagan East 1 well, located 75 kilometres south-east of Atyrau in the Northeast Caspian Sea. This represents the first discovery on the Kazakhstan shelf.

The discovery well encountered an oil-bearing interval in the Palaeozoic Carbonates below 4,000 metres. Two tests have been planned, the first of which in the lower section flowed at a rate of up to 600 cubic meters of oil per day and 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 3 metres (10 feet) of water to a total depth of nearly 5,200 metres (16,400 feet).

OKIOC General Manager Keith Dallard said: "OKIOC and its Shareholders are encouraged by the data we have received to date and we hope that continued exploration and appraisal drilling will further support these initial results.

We will continue to analyse the information obtained during the drilling and testing programme to learn more about the characteristics of the hydrocarbons that we have encountered and the nature of the Kashagan field."

Kashagan East 1 is the first well drilled by OKIOC. Drilling activities at Kashagan West, a second exploration location 40km from the Kashagan East location, will be commenced in the fourth quarter of the year.

OKIOC is conducting an exploration programme in the Northeast Caspian Sea on behalf of a consortium of nine international shareholders. OKIOC shareholders include subsidiaries of ENI, BG, BP Amoco, ExxonMobil, Inpex, Phillips Petroleum, Shell, Statoil and TotalFinaElf.

TotalFinaElf points out that this important discovery is a very positive sign for the Group, which plans to continue its exploration and development policy in a region offering very promising prospects. The Group is also present in the Azerbaidjan sector of the Caspian Sea on the Lenkoran (35%), Absheron (20%) and Shah Deniz (10%) permits. An important discovery was made on Shah Deniz in July 1999.