A meeting of the Gazprom Management Committee has been held in absentia.

The Management Committee considered it expedient to create a Gazprom and KazMunayGas’ 50/50 joint venture on the platform of the Orenburg Gas Processing Plant.

The Management Committee decided to enter with the Kazakh side into a long-term contract for the supply of gas from the Karachaganak field to the Orenburg Gas Processing Plant.

The joint venture creation issue is pending approval by the Gazprom Board of Directors.

Reference:

The Republic of Kazakhstan possesses some 2 tcm of the explored natural gas reserves, with the undiscovered natural gas reserves, including the Caspian offshore potential, valued at 8.3 tcm.

In recent years domestic gas production and consumption in Kazakhstan has annually averaged 12 and 5 bcm, respectively. Pursuant to a development program for Kazakhstan’s gas industry, by 2020 gas extraction is scheduled to be boosted to 40 bcm per year, with exports to potentially increase as well.

The Karachaganak gas condensate field is located in the Aksai district of the Ural region (Republic of Kazakhstan), 130 km from the Orenburg Gas Processing Plant.

The Karachaganak field is explored and developed by the Karachaganak Integrated Organization – Karachaganak Petroleum Operating B.V. representing the consortium of several world’s leading oil & gas companies and the Russian LUKOIL company (15 per cent stake). The field development project is anticipated to build annual gas production up to 25 bcm by 2012.