Kazakhstan has not yet discussed buying out Lukoil's stakes in projects, impact of sanctions still being studied - Energy Ministry
ASTANA. Oct 28 (Interfax) - The Kazakh authorities have not yet made a decision on the fate of projects jointly held with Lukoil , which has been sanctioned; the impact of sanctions is still being studied and a decision is presumably expected by the end of the week, Kazakh Energy Minister Yerlan Akkenzhenov said.
"Such a discussion [about buying out Lukoil's stakes in Kazakh projects] has not yet taken place. The sanctions are being studied; their impact on the companies and the economy still needs to be fully assessed. I think in the near future, in the coming days, we will make this [decision on the impact of sanctions], by the end of this week," Akkenzhenov told journalists on Tuesday.
It is more appropriate to pose this question to KazMunayGas, Lukoil's direct partner in Kazakhstan, he said.
"These are the company's commercial relations. Lukoil's partner in the projects is KazMunayGas. This applies both to the stake in Tengizchevroil and other projects. It is appropriate to ask KazMunayGas. But from the government, as with the country, I have not yet heard [about plans to buy out Lukoil's stakes]," he said.
Lukoil announced earlier that it plans to sell its international assets because it was hit by U.S. and UK sanctions. The company has begun to consider potential offers.
The U.S. Office of Foreign Assets Control (OFAC) included Lukoil and fellow Russian oil company Rosneft in its sanctions list last week and issued a license to wind down business with the companies by November 21.
The UK imposed sanctions on Lukoil on October 15, but international projects in Azerbaijan and Kazakhstan involving Lukoil and Rosneft were immediately exempted from sanctions until October 14, 2027, specifically the Caspian Pipeline Consortium (CPC), TengizChevroil, Shah Deniz, the South Caucasus Gas Pipeline, the Azerbaijan Gas Supply Company and Karachaganak.
Lukoil has been working in Kazakhstan since 1995 and has stakes in major oil and gas projects in the Central Asian country, such as Karachaganak (13.5% stake in field operator Karachaganak Petroleum Operating B.V.), Tengiz (5% in operator TengizChevroil) and Kumkol (50% of Turgai Petroleum), and together with Kazakhstan is involved in the CPC, in which it holds a 12.5% stake.
Lukoil also has an equal stake alongside KMG in the project to develop the Kalamkas-Sea and Khazar fields in Kazakhstan's sector of the Caspian Sea, which is expected to produce its first oil in 2028-2029. Total recoverable reserves are estimated at 48.5 million tonnes of oil and 19 billion cubic meters of gas. KMG said production is expected to total about 4 million tonnes per year (80,000 barrels per day), with a production plateau of at least five years. Investment in the project will total about $6.4 billion, according to KMG's tentative estimates.
The companies planned to make the final investment decision on the Kalamkas-Sea, Khazar and Auezov project in 2025.
