Kazakhstan: Principles Contract Lukoil Enters into Agreement with Kazmunaygas for Exploring Production in the Zhenis Area
Under the contract, both the parties are expected to set up a consortium in order to negotiate with the Republic of Kazakhstan to explore and produce at the site.
Russia – President of Lukoil Vagit Alekperov and Chairman of the Management Board of the National Company Kazmunaygas Sauat Mynbayev recently signed a Principles Agreement on the Zhenis license area, in Astana, Kazakhstan.
According to the agreement, the parties will establish a consortium upon completion of relevant procedures, required for the agreement to enter into force, and negotiate with a competent authority of the Republic of Kazakhstan to qualify for exploration and production at the block.
The Zhenis area is located in the Kazakhstani sector of the Caspian Sea, at depths varying from 75 to 100 meters, close to fields with proven hydrocarbon reserves, 80 km offshore and 180 km away from the port of Aktau (Kazakhstan).
The new Caspian project is an important milestone in terms of sprawling of the company's resource base in the strategically critical region, where the company has already gained significant competencies.