Kazakhstani-Russian oil and gas company will explore in the Caspian Sea

Almaty. August 16. Silkroadnews – LLC “Oil and Gas Company Central” has been entitled to explore and mine in the Caspian Sea. The appropriate order dated August 11, 2016, was published on the official site of the government of Russia.

“According to the Order №1703-p. dated August 11, 2016, LLC “Oil and Gas Company Central” is granted the right to use the subsoil site located in the Caspian Sea, which includes the structure “Central” within its frontiers, for geological study, exploration and production of hydrocarbons without an auction for a period of 25 years with the phase of geological exploration up to 7 years”, the document says.

According to the notification, as contained in the order, one of the grounds for subsoil use is the Russian government’s decision on exploration and mining or geological study, exploration and mining on the combined license for subsoil sites located in the Caspian Sea to be provided for use without holding auctions.

The order signed provides “Oil and Gas Company Central” with the right to use the subsoil site, located in the Caspian Sea and including the structure “Central” within its frontiers.

It is noted that after the geological survey phase is over the company shall be entitled to continue the use of mineral resources at this site using a general tax regime or to enter into production sharing agreement with Russian government.

According to media, the shareholders of “Oil and Gas Company Central” are JSC ““NC” KazMunayGas” (50%), “Lukoil” (25%) and “Gazprom” (25%).

The structure “Central” is located within the Russian sector of the northern Caspian Sea, 150 kilometers south-west of Aktau and 440 km from Astrakhan. Its reserves are estimated as 20.2 million according to C1 category and 149 million according to C2 category.