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Lukoil, KMG investments in Caspian project planned to be $6.5 bln — senior executive

"The project implies investments at the level of about $6.5 bln and is categorized as a technologically complex one," Kuanysh Kudaibergenov said

ASTANA, April 9. /TASS/. Investments in the Kalamkas - Khazar Operating project of the Kazakh oil and gas company KazMunayGas (KMG) and the Russian oil major Lukoil can total about $6.5 bln. Deputy CEO of KMG Kuanysh Kudaibergenov said.

Kalamkas-sea and Khazar oil fields were earlier parts of different subsoil use contracts with different operators. The government of Kazakhstan decided later to consolidate these projects in a single subsoil use contracts, considering geographical proximity and close geology of these fields. KMG engaged Lukoil as a strategic partner after lengthy talks.

"The project implies investments at the level of about $6.5 bln and is categorized as a technologically complex one. For the first time in Kazakhstan, the field is planned to be operated using offshore steel platforms. Kazakh shipyards in the Mangistau Region, which are actually idle at the moment since completion of construction work at the Kashagan [field], will be engaged in construction of platforms. All that implies growth of business activity in the region and creation of new jobs. Therefore, appearance of the strategic partner ready to invest in such expensive project is definitely a positive factor," Kudaibergenov said.

The KMG stake in the project is 50%, he noted. "All the decisions are taken on parity basis between joint venture participants," the senior executive added.

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