Baku, Azerbaijan, July 4
By Nargiz Sadikhova - Trend:
Kazakhstan and French oil and gas company Total approved a 15-year extension of the Production Sharing Agreement (PSA) for the Dunga field, Trend reports with reference to press office of the Prime Minister of Kazakhstan.
The agreement was originally signed in 1994 and is due to expire in 2024.
The new agreement which extends the PSA for the period from 2024 to 2039 was signed during the meeting with the representatives of the Total.
This extension will allow to additionally extract over nine million tons of oil. The agreement for the realization of Phase 3 development of the Dunga field was also reached. The project requires a $300 million investment and will create 400 more direct jobs in the region at the peak of construction activity. It will also allow to increase the extraction volume from 600,000 to 850,000 tons of oil a year.
The agreement was signed by Minister of Energy of Kazakhstan Kanat Bozumbayev, Vice-President of Total for Southern Europe and the Caspian region Bernard Clement, Director on Joint Ventures of Oman Oil Company Limited Abdoh Wahab Al Bulushi and Member of the Board of Partex Oil and Gas Fernando Alves.
The important condition of the agreement is the increase of the share in the production from 40 percent to 60 percent by January 2025. The agreement also covers the responsibilities of the companies to supply a part of the extracted oil on the internal market of Kazakhstan and to allocate no less than $1 million a year into the social and infrastructure projects of Kazakhstan.
(1 USD = 384.03 KTZ on July 4)
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