Press releases
Government of Kazakhstan to become Partner in Karachaganak Project
Policy, Government and Public Affairs
Chevron Eurasia
240G, Furmanov Str.
CDC Center One, 8th Floor
Almaty 050059 Kazakhstan
Chevron, Karachaganak partners and the Government of Kazakhstan reach agreement for Kazakhstan to become a 10% equity owner in the Karachaganakproject
ASTANA, Kazakstan, December 14th 2011 – Chevron Eurasia, an affiliate of Chevron Corporation today confirmed that the Karachaganak project partners have reached agreement with the government of Kazakhstan for them to become a 10 per cent equity owner in the Karachaganak project. The transfer of equity to the Kazakhstan government is anticipated to occur on June 30, 2012.
“Our agreement signed todaydescribes the overall structure and key terms for the Kazakhstan government to become a 10 per cent equity owner in the project and marks an important step in partnering with Kazakhstan,” said Chevron Eurasia Managing Director Scott Davis.
Davis added, “This achievement was made possible by the valuable contributions and strong leadership of numerous government Ministries and in particular the Ministry of Oil and Gas and Ministry of Finance. We welcome our new government partners to the project and look forward to developing a strong and positive working relationship as we continue to grow the country’s energy sector while generating economic prosperityfor the people of Kazakhstan”.
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 kilometres, it 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.
The Karachaganak Venture brings expertise and knowledge from four international oil & gas companies – BG Group (32.5 per cent), ENI (32.5 per cent), Chevron (20 per cent) and Lukoil (15 per cent). Together they share their experience and expertise with the Republic in looking at both domestic and export options for maximising the value of these resources.
In 1997, Venture partners signed a Final Production Sharing Agreement (FPSA) that will see the partnership operate Karachaganak until 2038. Since signing this agreement they have invested some $14 billion in the operations and have applied industry leading hydrocarbon technology to one of the world’s most complex reservoirs.
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 2010, the venture produced some 133.7 million barrels of oil equivalent.
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.
CAUTIONARY STATEMENT…to come if required
# # #
Contacts:
Yerkin Zikibayev: Almaty, Kazakhstan: + 7 727 298-0663
Kurt Glaubitz: + 1 925-842-2561