Negotiations over Karachaganak to be over before the New Year

Negotiations over Karachaganak oilfield between the Kazakhstan’s Government and the project shareholders will be over before the New Year, Liter newspaper reports, citing Vice Minister of Oil and Gas Lyazzat Kiinov, Novosti Kazakhstan reports. “There are no disagreements left. All the debated issues are gone, and the talks are likely to be over before the end of the year”, Liter quoted Mr. Kiinov as saying at the 20th World Petroleum Congress in Doha, Qatar. With its 1.2 billion tons of oil and condensed gas and 1.35 trillion cubic metres of gas, Karachaganak is one of the largest O&G fields in the world. Karachagank accounts for 49% of all the gas production and 18% of oil production in Kazakhstan. 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. Earlier it was reported that Kazakhstan’s share in the profits from Karachaganak oilfield developed by Karachaganak Petroleum Operating (KPO) stands at 20%, according to Minister of Oil and Gas Sauat Mynbayev.