International Deal on Kazakhstan's Karachaganak Field May Be Signed Before End of 2018 - Minister
The final agreement to settle a profit-sharing dispute with global energy companies developing Kazakhstan's Karachaganak gas condensate field should be signed before the end of this year, Kazakh Energy Minister Kanat Bozumbayev said on Tuesday.
ASTANA (Pakistan Point News / Sputnik - 02nd October, 2018) The final agreement to settle a profit-sharing dispute with global energy companies developing Kazakhstan's Karachaganak gas condensate field should be signed before the end of this year, Kazakh Energy Minister Kanat Bozumbayev said on Tuesday.
Kazakhstan's Energy Ministry announced on Monday that the energy firms operating one of Kazakhstan's biggest hydrocarbon fields will pay the Central Asian nation $1.1 billion and provide a $1 billion loan to Kazakhstan for infrastructure development. The consortium of companies also agreed on possible deliveries of feedstock to Kazakh refineries on commercial terms.
"We are satisfied with the settlement ... By the time the final agreement is signed, which should happen before the end of this year, the shareholders will have to submit a paper on the delivery of up to 1 million tonnes of condensate to the internal market and a paper on the delivery of up to 1 billion cubic meters of gas to develop petrochemical industry in Kazakhstan at agreed commercial prices," Bozumbayev said.
Italy's Eni and UK-Dutch Royal Dutch Shell each own 29.25 percent of the Karachaganak project, while the US Chevron Corporation owns 18 percent. Russia's LUKoil has a 13.5 percent stake and Kazakhstan's KazMunayGaz a 10 percent stake.