The Atash Company, the operator of the Atashsky project, the joint venture on a parity basis between KazMunaiTeniz and LUKOIL Overseas, has held public hearings in Aktau, the administrative center of the Mangistau Region of the Republic of Kazakhstan, on the environmental impact assessment of the construction of the first exploration well in the Atashsky offshore area.

The area is located in the central part of the North Caspian and includes the Atash, Kazakhstan and Maral structures.  In order to assess the oil and gas potential, in 2004-2006, seismic and electric exploration was performed in the area, as well as the site survey.

In April-June 2008, the drilling of the first exploration well with the depth of 2500 meters was planned with Astra mobile jack-up drilling rig. The well drilling period will be about 100 days. The drilling will be carried out in strict compliance with the environmental legislation of the Republic of Kazakhstan adhering to the zero discharge principle, which guarantees the minimal impact on the Caspian ecosystem. All industrial and domestic waste will be transported onshore and utilized in a special site. The work will be preceded by the development of an emergency plan; the drilling project stipulates emergency prevention and liquidation means, including skimming actions. Permanent environmental monitoring will be carried out during the period of works.

The general integral environmental impact of the exploration well construction is estimated as not exceeding the limits of an average level. According to the exploration contract, the operator shall annually finance social infrastructure development projects and other social-oriented projects. The operator prefers to hire the citizens of Kazakhstan other things being equal. The implementation of the project will allow to boost the social and economic development of the region and to create several hundred workplaces for the residents of the Mangistau Region.