LUKOIL Signs Contract On Al-Farabi ProjectSource: RNS
LUKOIL SIGNS CONTRACT TO ACQUIRE SHARE IN
AL-FARABI OFFSHORE PROJECT IN KAZAKHSTAN
President of PJSC "LUKOIL" Vagit Alekperov and Chairman of the Management Board of JSC NC "KazMunayGas" Alik Aidarbayev signed a sale and purchase agreement for a 49.99% stake in the charter capital of Al-Farabi Operating LLP. The signing ceremony took place today at the St. Petersburg International Economic Forum (SPIEF).
Following satisfaction of a number of conditions precedent LUKOIL will join the exploration and production project on the Al-Farabi block (previously known as I-P-2 block) in the Kazakhstan Sector of the Caspian Sea. A Head of Agreement on the project was signed at the SPIEF in 2019.
The companies' decision to join efforts in the development of the Al-Farabi block is another step in their continuous fruitful cooperation. LUKOIL, the Ministry of Energy of the Republic of Kazakhstan and KazMunayGas had earlier concluded a contract for hydrocarbon exploration and production on the Zhenis block. LUKOIL and KazMunayGas are also strategic partners in the large-scale Karachaganak and Tengiz projects, in joint ventures that develop the Khvalynskoye and Tsentralnoye fields, as well as in the Caspian Pipeline Consortium oil transportation project.
The Al-Farabi block is located in the Kazakhstan sector of the Caspian Sea, bordering the block of Zhenis field. Water depth within its area ranges from 150 to 500 metres; the distance to the shore is 100-130 kilometres. The area of the block exceeds 6000 square kilometres. The sea in the area is ice-free all year round.