Kazakhstan to become full participant of Karachaganak oil and gas project in mid. 2012

Oil&Gas Materials 14 December 2011 18:48 (UTC +04:00)

Azerbaijan, Baku, Dec. 14 / Trend E. Kosolapova/

The agreement on acquisition of a 10 percent stake in the Karachaganak oil and gas project by Kazakhstan will come into force until the middle of 2012, Kazakh Oil and Gas Minister Sauat Mynbayev said, the Kazakh National Oil and Gas company KazMunaiGas reported referring to Interfax-Kazakhstan.

"The agreement signed today has a number of issues that should be resolved. We hope and believe that all these issues will certainly be fulfilled until June, 30," Mynbayev said at a press conference in Astana on Wednesday.

"Their settlement is connected with correction of the legislation... Thus, it will take time," Mynbayev added.
The Kazakh government and Consortium Karachaganak Petroleum Operating BV, exploiting Karachaganak oil and gas field, signed an agreement on Wednesday to transfer a 10-percent share in the project to Kazakhstan.
According to one of the agreement's items, Kazakhstan will allocate an additional quota in the Caspian Pipeline Consortium (CPC) of 0.5 million tons per year with a further increase to 2 million tons per year to Karachaganak Petroleum Operating.
However, CPC will use the additional quota in the CTC not earlier than June, 30, Sauat Mynbayev said.

"The next quota of one million tons will be allocated when the second phase of CPC's expansion is completed," Mynbayev said.
Karachaganak with reserves of 1.2 billion tons of oil and condensate and more than 1.35 trillion cubic meters of gas is one of the major oil and gas fields in the world. About 49 percent of all gas and 18 percent of all oil production are extracted on this field.
The oil and gas field is being developed by Consortium Karachaganak Petroleum Operating BV. The Consortium members are the British BG and Italian Eni (each has 32.5 percent in the project), another 20 percent is owned by the U.S. Chevron, 15 percent - Russian Lukoil. Kazakhstan has not been involved in the project so far.