• Natural Gas News

    Lukoil expands offshore Kazakhstan


Lukoil is partnered with KMG at a number of projects in Kazakhstan, both offshore and onshore.

by: Joseph Murphy

Posted in:

Natural Gas & LNG News, Asia/Oceania, Corporate, Mergers & Acquisitions, Exploration & Production, Investments, News By Country, Kazakhstan

Lukoil expands offshore Kazakhstan

Russia's Lukoil has signed a sale and purchase agreement to enter the offshore Al-Farabi oil and gas project in Kazakhstan, the company reported on June 4.

Under the deal, reached at the St Petersburg International Economic Forum, Lukoil will take a 49.99% stake in the operating company, while Kazakhstan's state-owned KazMunayGas (KMG) will retain the remaining 50.01%.

Al-Farabi, formerly known as IP-2, spans more than 6,000 km2 of the Caspian Sea some 100-130 km from Kazakhstan's coast, in waters 150-500 m deep. Lukoil and KMG signed an agreement in principle to work together at the site in June 2019, and agreed on rights and obligations at the project in October last year.

Lukoil and KMG are also partnered at the Zhenis oil and gas block off Kazakhstan, and at the Khvalynskoye and Tsentralnoye  fields that straddle the country's maritime border with Russia. Onshore, they are partners at the Tengiz and Kumkol fields and the Caspian Pipeline Consortium oil pipeline network.