KazMunayGas and LUKOIL Sign a Purchase Agreement on Al-Farabi Project
On 4 June 2021 JSC NC "KazMunayGas” (KMG) and PJSC LUKOIL (LUKOIL) signed the Agreement on Purchase of 49.99% Interest in Al-Farabi Operating LLP's Charter Capital. The event was held during the St. Petersburg International Economic Forum.
After the transaction is closed, KMG and LUKOIL’s stakes in the joint venture will be 50.01% and 49.99%, respectively.
Cooperation on the Al-Farabi project is financed on the carry terms, the costs attributable to KMG's interest are borne by the strategic partner. In case of commercial production, the costs will be reimbursed from KMG's further profit from the project.
Al-Farabi area is located in the Kazakhstan sector of the Caspian Sea. Distance to shore is 130 km, water depth: 300-600 m. According to the base minimum work, drilling of 1 well (2,500 m) and 3D seismic acquisition (120 km2) are in the plans.
“KazMunayGas and LUKOIL |are bonded by long-lsating strategic cooperation and good partner relations. Big efforts are led jointly with LUKOIL on the Al-Farabi site. I am confident that our cooperation will be promoted year by year, and our joint projects will be successful. On the whole, I can say that today KazMunayGas is continuing active implementation of the Caspian shelf subsoil use investment projects, such as Abai, Issatai, Zhenis, Al-Farabi, and oil and gas chemistry projects for production of polypropylene, polyethylene and butadiene”, Alik Aidarbayev, Chairman of KMG's Management Board, noted.
Alongside with that, oil and gas chemistry projects, being implemented in Kazakhstan, were discussed during the meeting.
KMG and LUKOIL are carrying out joint operations on the Zhenis, Khvalynskoye, Centralnaya projects, participate in the Tengiz and Karachaganak megaprojects, as well as in the Caspian Pipeline Consortium oil transportation project.