LUKOIL reveals expected volume of oil reserves at Kazakhstan's Zhenis block

Oil&Gas Materials 25 December 2019 13:17 (UTC +04:00)
LUKOIL reveals expected volume of oil reserves at Kazakhstan's Zhenis block

BAKU, Azerbaijan, Dec. 25

By Nargiz Sadikhova - Trend:

Russia’s LUKOIL oil company is expecting that hydrocarbons reserves at Zhenis block in Kazakhstan will be no less that 500-700 million barrels (approximately 70-100 million tons), the company’s Chief Executive Vagit Alekperov said, Trend reports with reference to Kommersant newspaper.

According to Alekperov, it was in Kazakhstan and Azerbaijan that the company implemented its first projects.

“Currently we are probably the only company which is immersed in geology and paleoformation of hydrocarbon reserves in the Caspian basin, which we once studied in great detail. This allowed us to focus on more efficient oil fields,” Alekperov said.

He reminded that recently the company has signed major agreement for development of vast territory in Kazakhstan. Thus, Alekperov noted that currently the company is implementing work on interpretation of historical seismic and geological material, which was provided by Kazakhstan’s KazMunayGas National Company.

“The work is planned for two years and then we are hoping to hold negotiations to agree on development of fields which are interesting for both us and KazMunayGas,” he said.

Talking on the conditions of operating in Kazakhstan in the case of discovering new oil fields when jointly working in the block, Alekperov said, that due to the absence of production sharing agreement, the company for the most part has to work on the blocks via joint ventures (JV).

“At the same time, new law developed with our participation will give us opportunity to receive reasonably good rate of return and have KazMunayGasas a partner. Within the framework of JV we take exploration risks, which then will be paid back through joint development of fields,” Alekperov concluded.

In April, 2019, LUKOIL, Kazakhstan’s Ministry of Energy and KazMunayGas have concluded a contract for the exploration and development of hydrocarbons on the Zhenis block in the Kazakh Sector of the Caspian Sea.

In accordance with the concluded contract main minimal obligations include drilling of one exploration well and a 3D seismic survey.


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