Kazakhstan’s KazMunayGas National Company is planning to hold geological exploration at the Al-Farabi field together with Russian LUKOIL, the KazMunayGas (KMG) official told Trend.
At the beginning of the month KMG and LUKOIL signed an agreement on the sale and purchase of a share in the authorized capital of Al-Farabi Operating LLP.
According to the company, in accordance with the signed agreement, as well as the previously reached agreements, KMG and LUKOIL will own shares in the Al-Farabi Operating LLP in the proportion of 50.01 percent to 49.99 percent, respectively after the transaction is completed.
"Both companies plan to conduct geological exploration through this joint venture in order to search for hydrocarbons in the Al-Farabi area (Kazakh sector of the Caspian Sea), taking into account the financing of LUKOIL as a strategic partner," the company said.
If commercial hydrocarbon reserves are discovered in the contract area, KMG and LUKOIL will agree on their plans for their intended commercial production, the official added.
KMG is the Kazakh operator for exploration, production, refining and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan.