KazMunayGas and Lukoil sign Joint Operating Agreement and Financing Agreement for Zhenis Project
On 30 November 2018 Alik Aidarbayev, the Chairman of the Management Board of JSC NC “KazMunayGas” and Vagit Alekperov, the President of PJSC “LUKOIL” on behalf of LUKOIL Kazakhstan Upstream LLP signed a Joint Operating Agreement and a Financing Agreement for Zhenis Project in Moscow.
According to the documents that were signed, both companies agreed upon terms and conditions of Zhenis Project implementation. The project area is located in the Kazakh sector of the Caspian Sea.
Furthermore, signing the above agreements in accordance with Kazakh Subsoil and Subsoil Use Code would help approach the Kazakh Ministry of Energy to have direct negotiations and sign a hydrocarbon exploration and production contract among the competent authority, JSC NC “KazMunayGas” and LUKOIL Kazakhstan Upstream LLP.
It is worth noting that LUKOIL entering the Zhenis project demonstrates again that the Kazakh sector of the Caspian Sea is promising in terms of hydrocarbons and it proves there is close relationship between the two companies.
KazMunayGas and LUKOIL have been strategic partners over the last several years and have been implementing a number of joint projects.
For reference: Zhenis area is located in southern Kazakh sector of the Caspian Sea. The distance from the sea shore is 80 km, the closest port is Aktau city.
For reference: JSC National Company “KazMunayGas” is Kazakh national operator for exploration, production, refining and transportation of hydrocarbons. 90,42% shares of JSC National Company “KazMunayGas” is owned by JSC “Sovereign Wealth Fund Samruk Kazyna”, 9,58% shares are owned by National Bank of the Republic of Kazakhstan.