The Parliament of Kazakhstan ratified the agreement aiming to continue the joint exploration of Kurmangazy project with Russia
The ratification and subsequent commencement of additional protocol on Kurmangazy (Kulalinskaya) aims to: increase the contract area provided for by the production sharing agreement dated 6 July 2005; provide the joint venture with an additional exploration period of 6 years in the entire contract area with the possibility of subsequent extension for 4 years.
Kanat Bozumbayev, the Minister of Energy of Kazakhstan, previously told journalists that $ 157 million had been spent on exploration of Kurmangazy under the contract, and two wells of 1600 meters and 2002 meters depth had been drilled.
“Unfortunately, the wells turned out to be dry and we haven’t received any results. Therefore, it was decided to increase the contract area for project contractors by more than 2000 meters. We signed relevant agreement with Russia,” the minister specified.
In 2016, the President of Kazakhstan Nursultan Nazarbayev signed the law “On ratifying the protocol to amend the protocol to the agreement between the Republic of Kazakhstan and the Russian Federation on delimitation of the bottom of the northern part of the Caspian Sea in order to exercise sovereign mineral rights dated 6 July 1998”. The protocol establishes the legal framework for Kazakhstan and Russia represented by designated organizations in the joint subsoil development of the northern part of the Caspian Sea: the Kurmangazy (Kulalinskaya) structure in Kazakhstan, the Tsentralnaya structure and the Khvalynskoye field in Russia.
In 2003, the Russian government appointed LLC RN-Kazakhstan (100% owned by the Rosneft oil company) as designated organization from the Russian side to jointly develop the hydrocarbon resources of Kurmangazy (Kulalinskaya) on the shelf of the Kazakh sector of the Caspian Sea. Moreover, the Russian side (Zarubezhneft) was given an 25% option to participate in a joint venture. National company KazMunayGas (50%) became the designated organization from the Kazakh side.
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