The Deputy Chairman of the Board of JSC NC «KazMunayGas» (KMG) Kuanysh Kudaibergenov commented on the news of the sale of a 50% stake in the Kalamkas-Sea/Khazar project to the Russian company «Lukoil».
He reported that the Kalamkas-Sea and Khazar fields were previously part of different subsurface use contracts with various operators. The operator of Kalamkas-Sea was «North Caspian Operating Company» (NCOC), and the operator of Khazar was «Caspi Meruerty Operating Company» (CMOC), with the involvement of «Shell» and «Oman Oil».
«For a number of reasons, their development was delayed, including due to the lack of economic feasibility for independent operation. Ultimately, the companies refused to invest in their development and returned the plots to the state», stated Kuanysh Kudaibergenov.
According to him, given the geographical proximity and geological similarity of the fields, the government decided to combine the projects into a single subsurface use contract. KMG then attracted Lukoil as a strategic partner, which had already implemented a number of similar projects in the Caspian Sea.
«It is worth noting that the presence of a strategic partner possessing the relevant technologies for developing offshore fields was a decisive factor that made it possible to restart the project. Otherwise, the project could still be 'shelved' awaiting an investor», the statement said.
At the same time, Kuanysh Kudaibergenov noted that the project involves investments of nearly $6.5 billion and falls into the category of 'technologically complex'.
«Our company holds a 50% stake in the project. All decisions are made on a parity basis between the joint venture participants. The composition of the project operator's management also consists of an equal number of representatives from both participants. Thus, claims in some media outlets that 'KMG has lost control of the project' do not correspond to reality», concluded Kudaibergenov.