Kalamkas-Khazar Operating

History

2024: Lukoil buys 50% of Kalamkas-Khazar Operating

Lukoil paid $200 million for a 50 percent stake in Kalamkas-Khazar Operating LLP (KCO), a subsidiary of the Kazakh oil and gas company KazMunayGas (KMG). This is stated in the financial report of KMG, published in early April 2024.

The document notes that on February 9, 2023, the parties signed a purchase and sale agreement for a 50% stake in the authorized capital of KCO, a subsidiary of KazMunayGas, which holds a contract for the production of hydrocarbons in the Kalamkas-more, Khazar and Auezov subsoil areas located in the Kazakh sector of the Caspian Sea. On September 11, 2023, the RUC was re-registered after the parties fulfilled the preventive conditions provided for by the agreement. As a result, KazMunayGas lost control of the KKO.

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The cost of selling a 50% stake amounted to $200 million (equivalent to KZT93.258 million at the date of disposal of the subsidiary), the financial report said.

It is also noted that the payment was made on September 21, 2023. The investment of KazMunayGas, which remained in the former subsidiary, is an investment in a joint venture accounted for using the equity method, and its fair value is KZT93.258 million.

On February 9, 2023, KazMunayGas and Lukoil signed a number of agreements in Astana on the project for the development of the Kalamkas-more, Khazar, Auezov subsoil area in the Kazakh sector of the Caspian Sea. The parties signed an agreement of the participants, a purchase and sale agreement of a 50% stake in the authorized capital of Kalamkas-Khazar Operating LLP and an agreement on the terms of financing by the participants of the operator's activities. As a result, Lukoil became a strategic partner of KazMunayGas in the development of this subsoil area on the Caspian shelf.^[1]

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