Lukoil to Invest $200 Million in Kazakhstani Oil & Gas Project

The Kalamkas Sea-Khazar project is expected to attract around $6.5 billion in total investment, and will be one of the first in Kazakhstan where oil production will be carried out from offshore platforms.

In financial statements from Kazakh state energy company, KazMunayGas (KMG), it was stated that Russia’s Lukoil has purchased a stake in the Kalamkas Sea oil & gas project in for $200 million. That amount was enough to buy a 50% stake in Kalamkas-Khazar Operating Co., which is engaged in hydrocarbon production at the subsoil areas of Kalamkas Sea, Khazar and Auezov.

Furthermore, according to the terms of the agreement, Lukoil can pay another $100 million to increase its stake if it fulfills certain conditions. KMG made a solid profit on the deal, recognizing the additional cash from the sale as a financial asset, adding $29 million to their reserves. Lukoil has previously cooperated in similar projects in the Russian sector of the Caspian Sea, and has now become a strategic partners of KMG on the Kazakhstani side of the sea’s border. KMG deputy chairman, Kuanysh Kudaibergenov explained that combining the Kalamkas Sea and Khazar projects into one subsoil use contract was a logical step. The fields were abandoned because they were not economically viable, but now they are back on the list for development thanks to a new approach and Russian investment.

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Times of Central Asia