Azernews.Az

By Aynur Karimova

Gazprom Company and Karachaganak Petroleum Operating B.V. have prolonged a long-term agreement on the annual purchase and sale of 9 billion cubic meters of gas from Kazakhstan's Karachaganak gas condensate field.

The relevant agreement was signed between KazRosGas Company (a joint venture established between Gazprom and Kazakhstan's National Company KazMunaiGas) and Karachaganak Petroleum Operating B.V. last week.

Gazprom said on June 16, the agreement signed by Gazprom Deputy Chairman Alexander Medvedev and General Director of Karachaganak Petroleum Operating B.V. Renato Maroli in Astana notes that the existing Karachaganak Gas Sales Agreement will be extended until January 2038.

An important step in the further development of the giant Karachaganak field, the extension of the GSA will result in the supply of additional 120-135 billion cubic meters of gas to OrenburgGasProm until the end of the contract period.

It is believed that the extension of the agreement will also guarantee the availability of a reliable market for the sale of raw gas from Karachaganak, which will enable Karachaganak Petroleum Operating B.V. to timely commence the implementation of the long-term projects that are aimed at increasing the volume of liquids and gas during the duration of the FPSA.

This will ensure additional income to Kazakhstan's state budget, as well as result in a stable supply of gas to the domestic market of the country.

Karachaganak gas condensate field, located in the Aksai district of the Ural region in Kazakhstan, is one of the world's largest fields. Its oil reserves amount to 1.2 billion tons, while reserves of natural gas are at 1.35 trillion cubic meters.

Karachaganak is one of the largest international projects in Kazakhstan, with total investments exceeding $19 billion. Currently, over 8 billion cubic meters of untreated Karachaganak gas is exported to the Orenburg Gas Processing Plant in Russia.

The Karachaganak field is being explored and developed by the Karachaganak Integrated Organization – Karachaganak Petroleum Operating B.V., which includes British Gas (29.25 percent), ENI (29.25 percent), Сhevron (18 percent), Lukoil (13,5 percent) and National Company KazMunaiGas (10 percent).

The field development project is anticipated to expand annual gas production up to 25 billion cubic meters by 2012.

In June 2002, Gazprom and KazMunaiGas founded the 50/50 Kazakhstan-based KazRosGas JV dealing with natural gas procurement, marketing, and processing at Russian plants.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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