Gazprom, KMG extend Karachaganak supply contract to 2038

OAO Gazprom and JSC KazMunayGas (KMG) reported a contract extension to 2038 for supply from Karachaganak gas-condensate field in Kazakhstan (OGJ Online, June 28, 2012).

The contract is for nearly 9 billion cu m/year to the Orenburg gas processing plant in Russia, a distance of 130 km. The companies said the deal also provides the ability to secure long-term gas supplies to Kazakhstan, including through swaps.

KMG said the contract extension is an important step in Karachaganak development and means an additional supply of 120-135 billion cu m to Orenburg by the end of the contract period.

The agreement was signed in Astana by KazRosGas, a joint venture established by Gazprom and KMG National Co., and the Karachaganak Petroleum Operating (KPO) consortium. KPO includes British Gas 29.25%, Eni SPA 29.25%, Chevron Corp. 18%, OAO Lukoil 13.5%, and KMG National Co. 10%.

KazRosGas and KPO signed a contract for Karachaganak gas in 2007.