Lukoil and KazMunaiGaz to explore for hydrocarbons in the Caspian

Feb. 11, 2003
Vagit Alekperov, president of Russia's OAO Lukoil, and Lyazzat Kiinov, president of Kazakhstan's ZAO KazMunaiGaz Oil Co., signed a memorandum of understanding (MOU) for the exploration and production of hydrocarbons in the Kazakh and Russian sectors of the Caspian Sea.

Vagit Alekperov, president of Russia's OAO Lukoil, and Lyazzat Kiinov, president of Kazakhstan's ZAO KazMunaiGaz Oil Co., signed a memorandum of understanding (MOU) for the exploration and production of hydrocarbons in the Kazakh and Russian sectors of the Caspian Sea.

The MOU covers joint study and assessment of geological data and exploration and production of the prospective sea structures in the Kazakh and Russian sectors of the Caspian.

Within 15 days following the execution of the MOU, the parties will create a working group to manage their joint projects. The MOU will be effective until Nov. 30. During this period, the parties expect to reach an agreement on creating a joint venture to conduct hydrocarbon exploration and production.

The MOU states that KazMunaiGaz and Lukoil possess significant financial and technical resources to implement oil and gas projects in the sea.

02/11/03