Minutes of Direct Negotiations Signed for Al-farabi Project

Source Press Release
Company KazMunayGasLukoil PJSC 
Tags Exploration, Upstream Activities, Strategy - Upstream
Date March 16, 2021

A tripartite meeting was held on March 15 between the RoK’s Minister of Energy Nurlan Nogayev, Chairman of the Management Board of JSC NC "KazMunayGas” (KMG) Alik Aidarbayev, and President of PJSC “LUKOIL” (LUKOIL) Vagit Alekperov. Minutes of direct negotiations on granting of the hydrocarbon prospecting and production license in the framework of joint development of the Al-Farabi offshore site was signed at the meeting. The parties noted significant progress in the project development. The next stage will involve the signing of the subsoil use contract and completion of the KMG-LUKOIL joint venture creation with the following ownership proportions: KMG – 50.01%, LUKOIL – 49.99%.

KazMunayGas and LUKOIL are strategic partners, and have been implementing joint projects for many years. This new step in their cooperation once again confirms the strong and close relations between the parties. Both companies are interested in expanding the reserve base and in searching for new opportunities to explore and produce hydrocarbons in the region,” Alik Aidarbayev said at the meeting.

The parties also discussed the joint operations of KMG and LUKOIL under Khvalynskoye, Tsentralnaya, Zhenis and other projects. The partner expressed interest in Kalamkas Sea and Khazar projects, which proves the appeal of Kazakhstan’s sector of the Caspian Sea for hydrocarbon exploration.

KMG is actively working towards fulfilling the assignment of the President and Government of the Republic of Kazakhstan to ramp up the reserve base and carry out prospecting and exploration, inter alia, by way of joint projects with oil and gas majors.

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