Kazakhstan Buys Into Karachaganak Gas Project

Republic of Kazakhstan has acquired a 10% interest in the Karachaganak gas-condensate project for $2 billion cash and $1 billion non-cash consideration.

The agreement also includes the allocation of an additional 2 million tonnes per year capacity in the Caspian Pipeline Consortium export pipeline (CPC) over the remaining life of the Karachaganak FPSA.

Exports will be exempt from custom duties over that same period, BG Group said. Kazakhstan's interest in Karachaganak will be run by state energy company Kazmunaigas.

Karachaganak, which is located in northwestern Kazakhstan near the border with Russia, is estimated to hold around 1.2 billion tons in oil reserves and 1.35 trillion cubic meters of natural gas.