Chevron and Karachaganak Companies complete Equity Agreement with the Republic of Kazakhstan
Policy, Government and Public Affairs
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Republic of Kazakhstan acquires 10% equity in the Karachaganakproject
ASTANA, Kazakstan, June 28th 2012 – Chevron International Petroleum Company, an affiliate of Chevron Corporation, today confirmed that the Settlement Agreement signed on December 14, 2011 between the Karachaganak Companies and the Republic of Kazakhstan has been implemented and completed, resulting in a transfer of a 10% equity interest to the Republic of Kazakhstan.
“Chevron welcomes the Republic of Kazakhstan to the Karachaganak project,” said Chevron Eurasia Managing Director, Scott Davis. “This achievement was made possible by the strong leadership of many government Ministries, and in particular, the Ministry of Oil and Gas and Ministry of Finance.
Davis added, “It’s an important step in the evolution of the Project and we look forward to continuing our strong and positive working relationship as we continue to grow the country’s energy sector and generate economic prosperityfor the people of Kazakhstan”.
As a result of the agreement, equity interests in the Karachaganak consortium are BG Group (29.25 per cent), ENI (29.25 per cent), Chevron (18 per cent), Lukoil (13.5 per cent) and the Republic of Kazakhstan (10 per cent).
Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
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Yerkin Zikibayev: Almaty, Kazakhstan: + 7 727 298-0663
Sally Jones: London, UK: + 44 560 109 1435
Background for Editors:
The Karachaganak field, discovered in 1979, is one of the world’s largest gas and condensate fields. Located in north-west Kazakhstan and covering an area of over 280 square kilometers, the field holds estimated hydrocarbons initially in place of 9 billion barrels of condensate and 48 trillion cubic feet (tcf) of gas, with estimated gross reserves of over 2.4 billion barrels of condensate and 16 tcf of gas.
In 1997, the Karachaganak consortium companies signed a Final Production Sharing Agreement (FPSA) that will see the partnership operate Karachaganak until 2038. Since signing this agreement they have invested some $17 billion into developing the field, applying industry leading technology aimed at maximizing sustainable economic value.
Today, Karachaganak is producing at record levels and is the largest gas producing field in Kazakhstan, accounting for some 45 per cent of the country’s total gas production and around 16 per cent of total liquids production. In 2011, the venture produced some 138 million barrels of oil equivalent