Lukoil closes purchase of Caspian field stake
Russian oil company Lukoil has closed the purchase of almost a 50% stake in the Al-Farabi oil and gas project in the Kazakh zone of the Caspian Sea, Russian media reported on October 18 citing a company Eurobond prospectus.
The deal was completed this month, establishing Lukoil as a partner at Al-Farabi with Kazakhstan's state-owned KazMunayGas. The sales and purchase agreement was signed in June.
Al-Farabi, formerly known as IP-2, is more than 6,000 km2 in size some 100-130 km from the coast, covering waters 150-500 m deep. Lukoil and KMG signed an agreement in principle to work together at the site in June 2019, and agreed on rights and obligations at the project in October last year.
Lukoil and KMG are also partnered at the adjacent Zhenis oil and gas block, and at the Khvalynskoye and Tsentralnoye fields that straddle Kazakhstan's maritime border with Russia. Onshore, they are partners at the Tengiz and Kumkol fields and the Caspian Pipeline Consortium oil pipeline network.