How Karachaganak was divided
A six-year dispute over the division of profits from the field has ended
Agreements worth $1.9 billion
On December 14, 2020, the Ministry of Energy's press-service announced the signing of a Settlement Agreement with the Karachaganak project shareholders represented by Eni, Shell, Chevron, and Lukoil. On the Kazakhstani side, the document was signed by the Ministers of Energy, Finance, and the Head of the authorized body – PSA LLP.
The agreement contains the following arrangements:
- the Consortium will make a payment to the Republic of Kazakhstan in the amount of 1.305 bln US dollars in cash;
- the parties agreed on the final method of production sharing, as a result of which Kazakhstan will receive an additional $600 million by 2037 at an oil price of $40-50 per barrel;
- the parties approved the launch of the Karachaganak-1A Expansion Investment Project.