Russia, Kazakhstan to establish joint venture on field development in Caspian Sea

Oil&Gas Materials 16 May 2012 22:52 (UTC +04:00)

Kazakhstan, Astana, May 16 /Trend D.Mukhtarov/

Russia and Kazakhstan will establish a joint venture to develop Russian-Kazakh field "Central" in the Caspian Sea in the near future, President of the Russian oil company Lukoil Vagit Alekperov said.

"Currently the joint venture is being established, and we hope that it will be registered soon and receive a license for exploration and production," Alekperov told reporters in Astana.
License of the Russian company TsentrKaspneftegaz on the exploration of "Central" field on the Caspian shelf aimed at exploration and evaluation of hydrocarbon expired on October 30, 2009.

Lukoil appealed to the Russian government with a request to amend the law "On Subsoil", which would allow to develop the fields, opened by the company before the amendment to the law on strategic fields on the shelf. According to these amendments, only state-owned companies have the right to develop offshore fields.

However, in 2010 Russian Deputy Prime Minister Igor Sechin said the government does not intend to take away the right to develop "Central" field, resources of which amounted to 169.1 million tons of fuel, from Lukoil.

TsentrKaspneftegaz opened the field during the drilling of the first exploration and appraisal well in May 2008. Rosnedra issued Certificate on determining the discovery in November 2008.

Gazprom together with Lukoil is considering the issue of a joint venture between TsentrKaspneftegaz and Kazakh KazMunaiGas in the form of a limited liability company in order to receive further rights to use subsurface under the production sharing agreement for the field "Central".

As head of Luloil Vaqit Alekperov said previously the license for the structure of the "Central" on the shelf of the Caspian Sea will be re-arranged for a joint venture between Lukoil, Gazprom and KMG. It is assumed that Lukoil and Gazprom will receive 25 percent of the venture, and KazMunaiGas - 50 percent.