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Announcement on a search by JSC NC “KazMunayGas” of a strategic partner for joint implementation of the Karaton-Sarkamys project

22.06.2022

JSC NC “KazMunayGas” is looking for a strategic partner for joint implementation of Karaton-Sarkamys, a new subsoil use project.

 

  • Title of the new subsoil use project (subsoil area): Karaton-Sarkamys.

                                                        

  • Location of the subsoil area: Atyrau, Mangistau Region. The subsoil area is included in the State Subsoil Fund Management Programme where its coordinates are indicated, and is on the List of subsoil areas intended for hydrocarbon exploration and production or hydrocarbon production to grant subsoil use licenses to national companies. More information.

 

  • Requirements for legal entities (a consortium of legal entities) that establish criteria to select a strategic partner for JSC NC “KazMunayGas” for the purpose of investment financing of the Karaton-Sarkamys project to further obtain a subsoil use right (hereinafter — the Requirements):

“Organisation” means a Kazakh or foreign legal entity (associations thereof).

“Parent Company” means a legal entity that directly or indirectly owns 100% participation interest (blocks of shares) in the Organisation.

 

  1. Proof of state registration as a legal entity (an extract from the commercial register or other legalised document certifying that the applicant is a legal entity under the laws of a foreign state).
  2. The Organisation should not be in process of liquidation, reorganisation or bankruptcy.
  3. The Organisation should have no outstanding tax liabilities or other obligatory payments to the national budget.
  4. The Organisation or its Parent Company should have a good track record of subsoil use operations in Kazakhstan and/or abroad:

-     10+ years of experience in commercial production of hydrocarbons; and

-     5+ years of experience in geological exploration (seismic exploration and exploratory drilling); and

-     5+ years of experience in work programme implementation.

  1. Availability of skilled professionals (management) in the Organisation or its Parent Company with 10+ (ten+) years of experience in the oil and gas industry.
  2. The Organisation’s equity should be minimum 200,000,000 (two hundred million) U.S. dollars.
  3. If the Organisation or its Parent Company is on the Forbes list of the World’s Largest Public Oil and Gas Companies (Oil & Gas Operations) (https://www.forbes.com/global2000/list/), Paragraphs 4, 5 and 6 of the Requirements shall not apply.
  4. The Organisation shall commit to provide investment financing for exploration operations under a joint activity agreement (contract) and/or a financing agreement signed to obtain the subsoil use right through direct negotiations in the manner established by the Subsoil and Subsoil Use Code of the Republic of Kazakhstan.
  5. The Organisation shall commit to pay the signature bonus or reimburse the amount of the signature bonus paid by JSC NC “KazMunayGas”.
  6. Information on managers, legal entities, individuals, states and international organisations that directly or indirectly control the strategic partner.
  7. Information on previous activities of the strategic partner, including a list of countries in which it has operated for the last three years.
  8. Proof of availability of sufficient funds to carry out a work programme containing the scope, description and deadlines for the work during the exploration period.

 

  • List of documents to be provided by the Organisations to confirm compliance with the Requirements:
  1. A copy of the certificate (statement or other document) of state registration (re-registration) of a legal entity, an extract from the commercial register or another document certifying that the applicant is a legal entity under the laws of a foreign state, for a temporary association of legal entities (consortium) — a copy of the consortium agreement and copies of certificates (statements or other documents) of state registration (re-registration) of the consortium members.
  2. A copy of the Charter/Articles of Association duly approved, for legal entities registered on the basis of a standard Charter/Articles of Association — a copy of the statement of the established form for registration of a legal entity.
  3. Written information on managers and their powers, members (shareholders) indicating the size of their participation interests (blocks of shares), information on legal entities, individuals, states and international organisations that directly or indirectly control the applicant, information on trading in securities of a legal entity on the established securities market with the total number of such securities indicated, information on subsidiaries.
  4. Information on previous activities, including the list of countries where the Organisation has operated for the last three years.
  5. Number and date of the subsoil use contract or other agreement under which the Organisation is conducting or has conducted exploration/subsoil use operations.
  6. List of key employees (management) of the Organisation who have 10+ (ten+) years of experience in the oil and gas industry, CVs of these employees of the Organisation.
  7. Copies of audit reports for the period of 2019–2021 and a confirmation letter from an audit company on the financial position of the Organisation.
  8. If the Organisation or its Parent Company is on the Forbes list of the World’s Largest Public Oil and Gas Companies (Oil & Gas Operations), a letter from the Organisation or its Parent Company with a proof link to the information resource specified in Paragraph 7 of the Requirements.
  9. Written confirmation by the Organisation that all the information provided in the documents is true.

All the documents shall be in Kazakh and Russian. Where the documents are provided by a foreign legal entity, such documents may be issued in another language with obligatory notarised translation of the document into the Kazakh and Russian languages attached to each document.

 

  • Minimum requirements for the form of cooperation:
  1. Cooperation on a Joint Venture basis.
  2. The share of JSC NC “KazMunayGas” in the project shall be 50%.
  3. The minimum work programme shall include drilling of 1 (one) exploratory well 5,500 (five thousand five hundred) meters deep.

 

  • The procedure and deadline for the Organisations to submit applications for joint implementation of Karaton-Sarkamys, the new subsoil use project:

Applications from Organisations with enclosed documents to confirm compliance with the Requirements for applicants shall be submitted within 30 (thirty) calendar days following the date of announcement on the search for a strategic partner for joint implementation of Karaton-Sarkamys, the new subsoil use project.

Address of JSC NC “KazMunayGas”: 8 D. Kunayev Street, Block B, Emerald Quarter Administrative Building, Yessil District, Nur-Sultan, 010000, Republic of Kazakhstan

 

  • Conditions and procedure for selecting a strategic partner for joint implementation of the Karaton-Sarkamys project:

After 30 (thirty) calendar days from the date of this announcement, the application submission period shall be closed and a relevant notice shall be posted on the corporate website of JSC NC “KazMunayGas” — www.kmg.kz.

JSC NC “KazMunayGas” will review the applications with enclosed documents submitted by Organisations before the established deadline for compliance with the Requirements.

If Paragraph 7 of the Requirements is not complied with, the Organisation or its Parent Company shall provide a security deposit of $500,000 (five hundred thousand U.S. dollars) to participate in the procedure for determining the Strategic Partner for the Karaton-Sarkamys project, and use an escrow account or provide a bank guarantee or a guarantee of the Parent Company/Affiliate (adequately solvent) to secure the funding commitments under the Karaton-Sarkamys project. The security deposit paid for participation shall be returned to the Organisation once the strategic partner determination process is completed or the search for a strategic partner is declared failed.

Bank details of JSC NC “KazMunayGas”

Account Name: JSC NC “KazMunayGas”

BIN 020240000555

Bank: Halyk Bank of Kazakhstan JSC

Account number (USD):  KZ406010111000002040

Account number (KZT): KZ356010111000002033

Swift: HSBKKZKX

Beneficiary code 16

The list of Organisations that meet the Requirements shall be posted on the corporate website of JSC NC “KazMunayGas” — www.kmg.kz.

KazMunayGas will send a memorandum of understanding and a confidentiality agreement for signature to the Organisations that meet the Requirements. These documents determine the further procedure for engaging and determining a strategic partner for joint implementation of Karaton-Sarkamys, the new subsoil use project.

 

This announcement was posted on the corporate website of JSC NC “KazMunayGas” on 22 of june 2022.

JSC NC KazMunayGas

JSC NC “KazMunayGas” is looking for a strategic partner for joint implementation of Karaton-Sarkamys, a new subsoil use project.

 

  • Title of the new subsoil use project (subsoil area): Karaton-Sarkamys.

                                                        

  • Location of the subsoil area: Atyrau, Mangistau Region. The subsoil area is included in the State Subsoil Fund Management Programme where its coordinates are indicated, and is on the List of subsoil areas intended for hydrocarbon exploration and production or hydrocarbon production to grant subsoil use licenses to national companies. More information.

 

  • Requirements for legal entities (a consortium of legal entities) that establish criteria to select a strategic partner for JSC NC “KazMunayGas” for the purpose of investment financing of the Karaton-Sarkamys project to further obtain a subsoil use right (hereinafter — the Requirements):

“Organisation” means a Kazakh or foreign legal entity (associations thereof).

“Parent Company” means a legal entity that directly or indirectly owns 100% participation interest (blocks of shares) in the Organisation.

 

  1. Proof of state registration as a legal entity (an extract from the commercial register or other legalised document certifying that the applicant is a legal entity under the laws of a foreign state).
  2. The Organisation should not be in process of liquidation, reorganisation or bankruptcy.
  3. The Organisation should have no outstanding tax liabilities or other obligatory payments to the national budget.
  4. The Organisation or its Parent Company should have a good track record of subsoil use operations in Kazakhstan and/or abroad:

-     10+ years of experience in commercial production of hydrocarbons; and

-     5+ years of experience in geological exploration (seismic exploration and exploratory drilling); and

-     5+ years of experience in work programme implementation.

  1. Availability of skilled professionals (management) in the Organisation or its Parent Company with 10+ (ten+) years of experience in the oil and gas industry.
  2. The Organisation’s equity should be minimum 200,000,000 (two hundred million) U.S. dollars.
  3. If the Organisation or its Parent Company is on the Forbes list of the World’s Largest Public Oil and Gas Companies (Oil & Gas Operations) (https://www.forbes.com/global2000/list/), Paragraphs 4, 5 and 6 of the Requirements shall not apply.
  4. The Organisation shall commit to provide investment financing for exploration operations under a joint activity agreement (contract) and/or a financing agreement signed to obtain the subsoil use right through direct negotiations in the manner established by the Subsoil and Subsoil Use Code of the Republic of Kazakhstan.
  5. The Organisation shall commit to pay the signature bonus or reimburse the amount of the signature bonus paid by JSC NC “KazMunayGas”.
  6. Information on managers, legal entities, individuals, states and international organisations that directly or indirectly control the strategic partner.
  7. Information on previous activities of the strategic partner, including a list of countries in which it has operated for the last three years.
  8. Proof of availability of sufficient funds to carry out a work programme containing the scope, description and deadlines for the work during the exploration period.

 

  • List of documents to be provided by the Organisations to confirm compliance with the Requirements:
  1. A copy of the certificate (statement or other document) of state registration (re-registration) of a legal entity, an extract from the commercial register or another document certifying that the applicant is a legal entity under the laws of a foreign state, for a temporary association of legal entities (consortium) — a copy of the consortium agreement and copies of certificates (statements or other documents) of state registration (re-registration) of the consortium members.
  2. A copy of the Charter/Articles of Association duly approved, for legal entities registered on the basis of a standard Charter/Articles of Association — a copy of the statement of the established form for registration of a legal entity.
  3. Written information on managers and their powers, members (shareholders) indicating the size of their participation interests (blocks of shares), information on legal entities, individuals, states and international organisations that directly or indirectly control the applicant, information on trading in securities of a legal entity on the established securities market with the total number of such securities indicated, information on subsidiaries.
  4. Information on previous activities, including the list of countries where the Organisation has operated for the last three years.
  5. Number and date of the subsoil use contract or other agreement under which the Organisation is conducting or has conducted exploration/subsoil use operations.
  6. List of key employees (management) of the Organisation who have 10+ (ten+) years of experience in the oil and gas industry, CVs of these employees of the Organisation.
  7. Copies of audit reports for the period of 2019–2021 and a confirmation letter from an audit company on the financial position of the Organisation.
  8. If the Organisation or its Parent Company is on the Forbes list of the World’s Largest Public Oil and Gas Companies (Oil & Gas Operations), a letter from the Organisation or its Parent Company with a proof link to the information resource specified in Paragraph 7 of the Requirements.
  9. Written confirmation by the Organisation that all the information provided in the documents is true.

All the documents shall be in Kazakh and Russian. Where the documents are provided by a foreign legal entity, such documents may be issued in another language with obligatory notarised translation of the document into the Kazakh and Russian languages attached to each document.

 

  • Minimum requirements for the form of cooperation:
  1. Cooperation on a Joint Venture basis.
  2. The share of JSC NC “KazMunayGas” in the project shall be 50%.
  3. The minimum work programme shall include drilling of 1 (one) exploratory well 5,500 (five thousand five hundred) meters deep.

 

  • The procedure and deadline for the Organisations to submit applications for joint implementation of Karaton-Sarkamys, the new subsoil use project:

Applications from Organisations with enclosed documents to confirm compliance with the Requirements for applicants shall be submitted within 30 (thirty) calendar days following the date of announcement on the search for a strategic partner for joint implementation of Karaton-Sarkamys, the new subsoil use project.

Address of JSC NC “KazMunayGas”: 8 D. Kunayev Street, Block B, Emerald Quarter Administrative Building, Yessil District, Nur-Sultan, 010000, Republic of Kazakhstan

 

  • Conditions and procedure for selecting a strategic partner for joint implementation of the Karaton-Sarkamys project:

After 30 (thirty) calendar days from the date of this announcement, the application submission period shall be closed and a relevant notice shall be posted on the corporate website of JSC NC “KazMunayGas” — www.kmg.kz.

JSC NC “KazMunayGas” will review the applications with enclosed documents submitted by Organisations before the established deadline for compliance with the Requirements.

If Paragraph 7 of the Requirements is not complied with, the Organisation or its Parent Company shall provide a security deposit of $500,000 (five hundred thousand U.S. dollars) to participate in the procedure for determining the Strategic Partner for the Karaton-Sarkamys project, and use an escrow account or provide a bank guarantee or a guarantee of the Parent Company/Affiliate (adequately solvent) to secure the funding commitments under the Karaton-Sarkamys project. The security deposit paid for participation shall be returned to the Organisation once the strategic partner determination process is completed or the search for a strategic partner is declared failed.

Bank details of JSC NC “KazMunayGas”

Account Name: JSC NC “KazMunayGas”

BIN 020240000555

Bank: Halyk Bank of Kazakhstan JSC

Account number (USD):  KZ406010111000002040

Account number (KZT): KZ356010111000002033

Swift: HSBKKZKX

Beneficiary code 16

The list of Organisations that meet the Requirements shall be posted on the corporate website of JSC NC “KazMunayGas” — www.kmg.kz.

KazMunayGas will send a memorandum of understanding and a confidentiality agreement for signature to the Organisations that meet the Requirements. These documents determine the further procedure for engaging and determining a strategic partner for joint implementation of Karaton-Sarkamys, the new subsoil use project.

 

This announcement was posted on the corporate website of JSC NC “KazMunayGas” on 22 of june 2022.
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