Lukoil seeks to ink deal on fields development in Kazakhstan

Oil&Gas Materials 8 February 2018 16:13 (UTC +04:00)

Baku, Azerbaijan, Feb. 8

By Nigar Guliyeva – Trend:

Russia's Lukoil expects to sign a new agreement with Kazakhstan on development of deposits in the Caspian in the near future, Russian media reported referring to Lukoil's president Vagit Alakparov.

He did not say what kind of deposits, but added that Kazakhstan's legislation has changed and became attractive for investors.

"Therefore, it is very important for us to preserve and increase the competence that we have formed here," Alakparov said.

Lukoil has been working in Kazakhstan since 1995. The company participates in several mining projects onshore, as well as in operation of the Caspian Pipeline Consortium (CPC).

Kazakhstan approved a new Code on subsoil and subsoil use in late 2017. The document is aimed at removing barriers in the work of subsoil users, improving the sectoral legal framework, attracting foreign direct investment into the industry, opening new fields and creating new jobs.

The new Code stipulates for simplification of the granting subsoil use rights based on a "first come-first receive" basis - analogy to the Australian model; transition to the international order of stock assessment; providing open access to geological information and transferring it to digital format; revision of the list of common mineral resources.

Kazakhstan, holding 3 percent of the world's oil reserves, is among the top 15 countries in the world in terms of proven oil reserves.

Oil and gas bearing areas occupy 62 percent of the country's territory, and have 172 oil fields, of which more than 80 are under development. More than 90 percent of the oil reserves are concentrated in the 15 largest fields.

The fields are located on the territory of six of the fourteen regions of Kazakhstan. These are the Aktyubinsk, Atyrau, West Kazakhstan, Karaganda, Kyzylorda and Mangistau regions. About 70 percent of hydrocarbon reserves are concentrated in the west of Kazakhstan.