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Kazakhstan-based Karachaganak oilfield will see a new scheme of sharing profits, with Kazakhstan getting 80% of the profit, the country’s Minister of Oil and Gas Uzakbai Karabalin said when meeting reps of subsurface users in Uralsk, Tengrinews reports. “In the nearest year a new scheme of sharing profits comes into effect, with the Kazakh side getting 80% of the profits. Investments injected into the oilfield have been recouped”, the Minister was quoted as saying. “It’s important to raise the share of Kazakhstan-made products and contribution of local work force into the project. As of now only a small number of local suppliers contribute to the project. The contests for purchasing services lack transparency (…) we will not force subcontractors into buying Kazakhstan-made equipment or materials. The equipment and materials should meet the quality requirements set by subcontractors at sizeable oilfields like Karachaganak”, he said. Earlier the country’s media reported that the Oil Ministry is considering expanding the project. Late June 2012 Kazakhstan purchased a 10% share in the KPO consortium. Karachaganak Petroleum Operating B.V. (KPO) is developing one of the world’s biggest oil and gas condensate field Karachaganak located in north-west Kazakhstan. The field’s area is 280 square kilometers, its reserves are evaluated at over 1.2 billion tons of oil and condensate and over 1.35 trillion cubic meters of gas. KPO is a joint company of BG Group (29.25 percent), Eni (29.25 percent), Chevron (18 percent), Lukiol (13.5 percent) and KazMunaiGas (10 percent). According to the PSA, the consortium shall be running the project until 2038.
Kazakhstan-based Karachaganak oilfield will see a new scheme of sharing profits, with Kazakhstan getting 80% of the profit, the country’s Minister of Oil and Gas Uzakbai Karabalin said when meeting reps of subsurface users in Uralsk, Tengrinews reports.
“In the nearest year a new scheme of sharing profits comes into effect, with the Kazakh side getting 80% of the profits. Investments injected into the oilfield have been recouped”, the Minister was quoted as saying.
“It’s important to raise the share of Kazakhstan-made products and contribution of local work force into the project. As of now only a small number of local suppliers contribute to the project. The contests for purchasing services lack transparency (…) we will not force subcontractors into buying Kazakhstan-made equipment or materials. The equipment and materials should meet the quality requirements set by subcontractors at sizeable oilfields like Karachaganak”, he said.
Earlier the country’s media reported that the Oil Ministry is considering expanding the project.
Late June 2012 Kazakhstan purchased a 10% share in the KPO consortium.
Karachaganak Petroleum Operating B.V. (KPO) is developing one of the world’s biggest oil and gas condensate field Karachaganak located in north-west Kazakhstan. The field’s area is 280 square kilometers, its reserves are evaluated at over 1.2 billion tons of oil and condensate and over 1.35 trillion cubic meters of gas.
KPO is a joint company of BG Group (29.25 percent), Eni (29.25 percent), Chevron (18 percent), Lukiol (13.5 percent) and KazMunaiGas (10 percent).
According to the PSA, the consortium shall be running the project until 2038.
