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KazMunayGas and LUKOIL Sign Agreement on Al-Farabi Project

08.10.2020

On 7 October 2020, Chairman of the Management Board of JSC NC “KazMunayGas” (KMG) Alik Aidarbayev and President of PJSC LUKOIL Vagit Alekperov signed in Moscow an agreement on the Al-Farabi project. The state authorities had earlier amended the State Subsoil Fund Management Programme to rename the I-P-2 site as Al-Farabi subsoil site.

In June 2019, a principles agreement was signed between KMG and LUKOIL in respect of this project, whereby the companies agreed on the basic terms and conditions for its joint implementation. Today's agreement is the next stage of joint activities related to this subsoil site. The following step will involve the signing of a contract for the exploration and production of raw hydrocarbons.

The document signed today defines the rights and obligations of KMG and LUKOIL regarding the operations of the future subsoil user under the Al-Farabi project. The agreement will enter into force after KMG obtains the subsoil use right by entering into a subsoil use contract and completing the planned transaction between KMG and LUKOIL to create a joint venture with the following participatory interests: KMG – 50.01%, LUKOIL – 49.99%.

“The agreement we have signed today again confirms that the partnership between KazMunayGas and LUKOIL is progressively developing. Expansion of the resource base is one of KMG’s strategic objectives, and we intend to continue working to this end. KMG and LUKOIL will make every effort to efficiently develop the Kazakhstan sector of the Caspian Sea,” Alik Aidarbayev said.

KMG’s intention is to apply to the Ministry of Energy of the Republic of Kazakhstan for holding direct negotiations to obtain the subsoil use right for the Al-Farabi subsoil site.

The cooperation between KMG and LUKOIL is of a strategic nature. The companies are partners in such major projects as Karachaganak, Tengiz, Kumkol and the Caspian Pipeline Consortium oil transportation project. On 1 April 2019, the Ministry of Energy of the Republic of Kazakhstan, KMG and LUKOIL entered into a contract for exploration and production of raw hydrocarbons in the Zhenis offshore area.

JSC NC KazMunayGas

On 7 October 2020, Chairman of the Management Board of JSC NC “KazMunayGas” (KMG) Alik Aidarbayev and President of PJSC LUKOIL Vagit Alekperov signed in Moscow an agreement on the Al-Farabi project. The state authorities had earlier amended the State Subsoil Fund Management Programme to rename the I-P-2 site as Al-Farabi subsoil site.

In June 2019, a principles agreement was signed between KMG and LUKOIL in respect of this project, whereby the companies agreed on the basic terms and conditions for its joint implementation. Today's agreement is the next stage of joint activities related to this subsoil site. The following step will involve the signing of a contract for the exploration and production of raw hydrocarbons.

The document signed today defines the rights and obligations of KMG and LUKOIL regarding the operations of the future subsoil user under the Al-Farabi project. The agreement will enter into force after KMG obtains the subsoil use right by entering into a subsoil use contract and completing the planned transaction between KMG and LUKOIL to create a joint venture with the following participatory interests: KMG – 50.01%, LUKOIL – 49.99%.

“The agreement we have signed today again confirms that the partnership between KazMunayGas and LUKOIL is progressively developing. Expansion of the resource base is one of KMG’s strategic objectives, and we intend to continue working to this end. KMG and LUKOIL will make every effort to efficiently develop the Kazakhstan sector of the Caspian Sea,” Alik Aidarbayev said.

KMG’s intention is to apply to the Ministry of Energy of the Republic of Kazakhstan for holding direct negotiations to obtain the subsoil use right for the Al-Farabi subsoil site.

The cooperation between KMG and LUKOIL is of a strategic nature. The companies are partners in such major projects as Karachaganak, Tengiz, Kumkol and the Caspian Pipeline Consortium oil transportation project. On 1 April 2019, the Ministry of Energy of the Republic of Kazakhstan, KMG and LUKOIL entered into a contract for exploration and production of raw hydrocarbons in the Zhenis offshore area.

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