15 May 2023 14:57

Investments in Tatneft, KMG Karaton-Sarkamys project could total $2.4 bln

MOSCOW. May 15 (Interfax) - Financing for the Karaton-Sarkamys project in Kazakhstan's Atyrau Region could total $2.4 billion, according to the Kazakh government's draft resolution "On approving the Comprehensive Plan for Developing Major Oil and Gas and Petrochemical Projects for 2023-2027."

The contract for implementation is expected to be signed before the end of 2023.

As reported, KazMunayGas (KMG) and PJSC Tatneft in July 2022 signed an agreement of intent on jointly implementing the Karaton-Sarkamys project in western Kazakhstan. The subsoil plot is located next to the operating fields of Tengiz and Korolevskoye, as well as a group of JSC Embamunaigas fields.

There were later reports that Tatneft would receive 50% in the project and would participate on the terms and conditions of carry financing, which envisage the investor bearing responsibility for costs during the prospecting and exploration phase.

"Consequently, if the well turns out to be dry, then the risks will be on Tatneft. However, if the well provides a positive result, then the costs will be compensated," Nurlan Konysov, director of the KMG exploration and production department, said in September.