Issues over KPO may take longer than planned: LUKOIL President Vagit Alekperov

LUKOIL President Vagit Alekperov hopes that the issues over Karachaganak Petroleum Operating (KPO) will be settled. However, the process may take longer than planned, Novosti Kazakhstan reports. Karachaganak Petroleum Operating (KPO) is a consortium of companies to develop Karachaganak oilfiled. The consortium includes BG Group, Eni (32.5% each), Chevron (20%) and LUKOIL (15%). KPO operates in accordance with a PSA signed with the Kazakh Government in November 1997. According to the PSA, the consortium shall be operating the project up to 2038. “We are in talks for KazMunaiGas National Oil Company to acquire 10% in the project and we hope to arrive at some agreement within reasonably shortest time”, Mr. Kulibayev, Chairman of the Board at Samruk-Kazyna Sovereign Wealth Fund, had told journalists in Almaty April 28. “The negotiations are under way. Kazakhstan has a number of requirements to be considered by the consortium. There are mutual commitments (…) the negotiations process is constructive (…) Hopefully, within the frameworks of the Kazakhstan’s legislation we will settle the issues”, Mr. Alekperov told journalists in Astana on Tuesday. “It is a long process. It may take half a year…it may take 10 years”, Mr. Alekperov said.