Karaton Operating

History

2024: TATNEFT bought 50% of Karaton for 1.6 billion rubles

In August 2024, it became known that the Russian company TATNEFT acquired a 50% stake in the Kazakh oil company Karaton Operating for ₽1,6 billion. This deal was the result of an agreement between Tatneft and the Kazakh national holding KazMunayGas, as a result of which the Kazakh side lost control of Karaton.

According to Forbes, the purchase and sale agreement was signed on February 21, 2024, but the details of the transaction became known only after the publication of the interim financial statements of KazMunaiGas for the first six months of 2024. The document says that the cost of selling a 50% stake amounted to $18.2 million. The payment was made by Tatneft on March 13, 2024.

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Karaton Operating

Karaton Operating is the contract holder for hydrocarbon production in the Karaton subsoil areas located in the Atyrau region of Kazakhstan. The region is known for its significant hydrocarbon reserves, making the Karaton project strategically important to both sides of the deal. Now TATNEFT and KazMunayGas jointly control this company, and all decisions on its activities are made unanimously.

The signing of the agreement between the two companies became possible after lengthy negotiations, which began back in 2022, when an agreement of intent was concluded on the joint implementation of the Karaton-Sarkamys exploration project in the Atyrau region. This project is also among the priorities for TATNEFT, since the company is actively expanding its presence in Central Asia.

The deal to acquire a stake in Karaton Operating is part of TATNEFT's strategy to increase international assets and strengthen its position in the oil market in Kazakhstan. In February 2024, during the visit of the President of Kazakhstan Kassym-Zhomart Tokayev to Tatarstan, a number of documents were signed, including a purchase and sale agreement for Karaton Operating shares. This visit stressed the importance of cooperation between Russia and Kazakhstan in the oil industry.^[1]

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