Kazakh and Russian companies to set up consortium
KazMunaiGaz, Kazakhstan's national oil and gas company, will set up a consortium together with Russia's LUKoil to
develop the Khvalynsk oil-and-gas field in the Caspian Sea.
KazMunaiGaz' First Vice President Timur Kulibayev and LUKoil's First Vice President Ravil Maganov signed an agreement
on the joint development of Khvalynsk oil and gas resources, KazMunaiGaz said.
The two companies will have equal shares in the consortium and equally divide all rights and duties. A
LUKoil-affiliated structure will be the operator of the project. KazMunayGaz representatives will work with the
operator.
"Preference will be given to Russian and Kazakh suppliers of materials, goods and services to develop Khvalynsk," the
company said.
The agreement has provided a basis for concluding a contract on joint activities and conducting a feasibility study
for the project. Moreover, the companies will put Khvalynsk on the list of deposits developed under a production
sharing agreement.
The document is consistent with the protocol to a bilateral agreement on dividing the northern Caspian seabed to
exercise the sovereign right for resource development of 13 May 2002.
