KazMunayGas, Lukoil finalizing sale of 50% stake in Kalamkas-Khazar Operating

ASTANA. Aug 16 (Interfax) - Kazakhstan's national oil and gas company KazMunayGas (KMG) and Russia's Lukoil are finalizing corporate procedures for the sale of a 50% stake in Kalamkas-Khazar Operating to Lukoil, KMG said in a press release.

KMG CEO Magzum Mirzagaliyev held a meeting with Lukoil management on Wednesday at which key cooperation issues and future joint projects were discussed and opinions exchanged about collaboration in the Kalamkas Sea, Khazar, Auezov project in the Caspian Sea.

"Our corporate procedures for the sale of the 50% stake in Kalamkas-Khazar Operating LLP to Lukoil have entered the final stage. It is with great pleasure that I note the full understanding and absence of any differences the both parties have been demonstrating during the negotiations," Mirzagaliyev is quoted as saying.

KazMunayGas and Lukoil on February 9, 2023 signed a number of agreements relating to the development of the Kalamkas Sea, Khazar and Auezov blocks in the Kazakh sector of the Caspian Sea, including an agreement on the sale and purchase of a 50% holding in the charter capital of Kalamkas-Khazar Operating LLP and an agreement on terms and conditions for the financing of the project by its participants.

The Kalamkas Sea, Khazar and Auezov fields lie 60 km from the coast and at a depth of 7-9 meters. Production is expected to start in 2028 and will total 3-4 million tonnes per year. The development costs are estimated at about $5 billion.

Kalamkas Sea, discovered in 2002, is located 120 km southwest of the Kashagan field and very close to the Khazar field. The combined recoverable reserves of the Kalamkas-Sea and Khazar fields are estimated at 67 million tonnes of oil and 9 billion cubic meters of gas.