OREANDA-NEWS. June 22, 2015. Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Renato Maroli, Director General of Karachaganak Petroleum Operating (KPO) signed an agreement between KazRosGas and KPO in Astana. The document extends till 2038 the long-term sales and purchase contract for nearly 9 billion cubic meters of gas annually from the Karachaganakskoye gas and condensate field.

The agreement guarantees an additional export of 120 to 135 billion cubic meters of gas to the Orenburg Gas Processing Plant (GPP) and also provides long-term supplies to the domestic market of Kazakhstan, in particular by means of swap transactions.

Background

The Karachaganakskoye gas and condensate field is located in the Aksai District of the Uralsk Region in the Republic of Kazakhstan at a distance of 130 kilometers from the Orenburg GPP. Karachaganak Petroleum Operating consortium, including British Gas (29.25 per cent), Eni (29.25 per cent), Chevron (18 per cent), LUKOIL (13.5 per cent) and KazMunaiGaz National Company (10 per cent), is responsible for developing the field.

KazRosGas is a joint venture established by Gazprom and KazMunaiGaz National Company on a parity basis. The company mainly deals with the purchase, processing, transportation and sales of natural gas and final products in the domestic and foreign markets.

The long-term sales and purchase contract for gas from the Karachaganakskoye gas and condensate field was signed by KPO and KazRosGas in 2007.