FSUOGM: Lukoil signs deal to develop Caspian fields off Kazakhstan

Russia’s Lukoil has signed several deals with Kazakhstan’s state-owned KazMunayGas (KMG) on developing the Kalamkas-Sea, Khazar and Auezov blocks in the Kazakh Caspian Sea.

The agreements set out the rights and obligations that Lukoil would have as a subsoil user at the blocks in partnership with KMG. They will be activated once the two partners reach a sales and purchase agreement (SPA), which will result in each holding an equal share in an operating company to manage the projects.

Kalamkas-Sea, Khazar and Auezov are satellite deposits of the giant Kashagan oil project, which is operated by an international consortium comprising Shell, Eni, ExxonMobil, CNPC, Total, Inpex and KazMunayGas (KMG). Kalamkas-Sea and Auezov were previously controlled by the Kashagan consortium, while Khazar was under the operatorship of Shell, Oman Oil and KMG.

However, both of the groups abandoned the projects in October 2019, citing the high cost required to develop them. This came as a blow to Kazakhstan’s hopes of expanding offshore oil production beyond Kashagan, which came online in late 2016.

Lukoil signed a preliminary agreement to develop the deposits in 2021. 

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