Lukoil and JSC NC KazMunayGas (KMG) signed an agreement defining rights and obligations as future license holders in the Al-Farabi project (formerly I-P-2 license block) offshore Kazakhstan.
The parties intend to sign a contract on exploration and production of hydrocarbons that will come into force as soon as KMG receives the license and the parties close the deal to establish the joint venture with 50.01% (KMG) and 49.99% (LUKOIL) shares.
A heads of agreement for negotiation of mineral rights on the block was signed in 2019 (OGJ Online, June 11, 2019).
The companies currently partner in the Karachaganak, Tengiz, and Kumkol projects, as well as the Caspian Pipeline Consortium oil transportation project. On Apr. 1, 2019, the Ministry of Energy of the Republic of Kazakhstan, KMG, and Lukoil signed an agreement to explore and produce hydrocarbons at Zhenis block in the Caspian Sea offshore Kazakhstan (OGJ Online, Apr. 5, 2019).