Kazakhstan and Russian Ministries of Energy have been working to find agreement on the draft of protocol on amending the agreement on Khalynskoye field, reported the Kazakhstan Ministry of Energy.
“Kazakhstan Ministry of Energy and Russian Ministry of Energy jointly with the authorized agencies have been working to find agreement on the draft protocol on amending the agreement between Russian Federation and Kazakhstan Republic of July 6, 198. After that we will sign the production sharing agreement (PSA) on use of bowels of earth of the oil and gas condensate Khvalnskoye field,” reported a source from the Ministry.
The Ministry also reported that in April 2011 Russia created the commission to work out conditons of use of bowels of earth and prepare the draft of production sharing agreement (PSA). Since 2011 we have been negotiating with the Russian state agencies the conditons of PSA on the Khvalynskoye field.”
“We have been currently working with KazMunaiGas and LUKoil to achieve acceptable indexes of economic efficiency,” said a source from the Ministry.
Khvalynskoye field is being implemented in accordance with the prorocol of May 13, 2002 to the agreement between Kazakhstan and Russia on division of bottom of the northern part of the Caspian Sea to guarantee realization sovereign rights of usel of bowels of earth of July 6, 1998.
In 2002 Kazakhstan and Russia have determined the border between their sectors of the Caspian Sea and determined three border structures: Kurmangazy, Khvalynskoye and Central. The resources of Khvalynskoye bloc are estimated at 332 billion cub.m. of natural gas, 17 million tons of gas condensate and 36 million tons of oil. The volume of investments required for the field development is $1 billion.
