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Russia's Gazprom is negotiating to join a venture planning further development of supergiant Karachaganak oil and gas/condensate field in Kazakhstan.
A British Gas plc official confirmed that project partners are discussing equity participation by Gazprom in return for transportation of gas through Russia and processing of output.
"Negotiations have reached the detailed stage," said the official, "but finalization depends on the ultimate arrangements made with the Kazakh government."
Two years ago British Gas and Italy's Agip SpA signed an exclusive protocol of intent for a $6 billion project to boost production from Karachaganak. Estimated field reserves are 20 tcf of gas and 2 billion bbl of liquids (OGJ, July 13, 1992, p. 24).
The revelation by British Gas was prompted by newspaper reports that it is reconsidering its planned investment in the project. Russia's refusal to grant pipeline rights for Karachaganak production was reported to be a stumbling block.
The British Gas official denied the company was considering withdrawal. He said the company moved more than L3 million ($4.5 million) worth of equipment into the area a few weeks ago.
An Agip official said the company was unaware of any British Gas hesitance and was in continuing discussions over the project. "Who doesn't have problems over transportation in Russia?" he asked.
In June, Russian oil company Lukoil revealed it was in discussions with the Kazakh government over other development projects in the former Soviet state.
Lukoil said it held valuable data, which may help in developing Kazakh projects, because Russian oilmen discovered many of the former Soviet Union's oil fields (OGJ, June 20, p. 24).
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