Page 10 - FSUOGM Week 07 2023

FSUOGM PROJECTS & COMPANIES FSUOGM

Lukoil signs deal to develop

Caspian fields off Kazakhstan

KAZAKHSTAN RUSSIA’S Lukoil has signed several deals However, both of the groups abandoned the
with Kazakhstan’s state-owned KazMunay- projects in October 2019, citing the high cost
The Caspian is a core Gas (KMG) on developing the Kalamkas-Sea, required to develop them. This came as a blow
region for Lukoil. Khazar and Auezov blocks in the Kazakh Cas- to Kazakhstan’s hopes of expanding offshore
pian Sea. oil production beyond Kashagan, which came
The agreements set out the rights and obliga- online in late 2016.
tions that Lukoil would have as a subsoil user at Lukoil signed a preliminary agreement to
the blocks in partnership with KMG. They will develop the deposits in 2021.
be activated once the two partners reach a sales Kazakhstan has looked to Caspian Sea oil
and purchase agreement that will result in each and gas development as a means of reducing
holding an equal share in an operating company dependency on its three largest oil projects,
to manage the projects. which besides Kashagan include the onshore
Kalamkas-Sea, Khazar and Auezov are sat- Tengiz and Karachaganak fields, which
ellite deposits of the giant Kashagan oil project, together account for around 60% of national
which is operated by an international consor- supply.
tium comprising Shell, Eni, ExxonMobil, CNPC, The Caspian Sea is a core region for Lukoil.
Total, Inpex and KazMunayGas (KMG). Kalam- In addition to its interests in Kazakh waters, the
kas-Sea and Auezov were previously controlled company also operates producing fields off the
by the Kashagan consortium, while Khazar was coast of Russia and Azerbaijan, and has signalled
under the operatorship of Shell, Oman Oil and interest in exploring for deposits offshore Turk-
KMG. menistan as well. ™

P10 www. NEWSBASE .com Week 07 15•February•2023