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Partners in the Karachaganak project and the Authorized body sanction the implementation of a major investment project by signing the agreement for the Karachaganak Expansion Project-1B

ASTANA, November 25 2022 — Karachaganak Petroleum Operating B.V. (KPO) has announced that the Partners in the Karachaganak project (Shell, ENI, Chevron, Lukoil and KMG) and the Authorized body (PSA LLP) supported by the Ministry of Energy of the Republic of Kazakhstan have signed the agreement sanctioning the Karachaganak Expansion Project-1B (‘’KEP-1B Project’’).

KEP-1B project includes construction of the 6th injection compressor, gas dehydration unit, gathering network expansion and other associated facilities. Aimed at extending the duration of the liquid production plateau, the project will make a significant contribution and bring additional value for the Republic of Kazakhstan and the Karachaganak Partners.

KEP-1B Project is a logical extension of a number of major projects implemented at Karachaganak a few years earlier, namely: Karachaganak Gas Debottlenecking Project (completed in 2021), the Fourth Injection Compressor Project (completed in early 2022), and the KEP-1A project, which is under construction as per plan.

According to the General Director of PSA LLP Beket Izbastin, the Authority, with the support of the Ministry of Energy, has been consistent in supporting stable production at the Karachaganak field through the implementation of large investment projects.

The project creates job opportunities for Kazakhstani workers. One of KPO’s key priorities during the execution of this project will be maximizing the Local Content aimed at growing the local contractors’ competitiveness.

Giancarlo Ruiu, KPO General Director, stated that «the sanctioning of the KEP-1B Project is another major achievement and represents a new important milestone in the continued development of the Karachaganak field».

«We are delighted to announce this significant milestone which is in full alignment with the RoK President Kassym-Jomart Tokayev’s vision for the development of the Karachaganak field as expressed during his meeting with the international oil and gas investors».

«Taking this opportunity, I would like to express my gratitude to the leadership of the Authorized Body and the Ministry of Energy of the RoK for fruitful cooperation and full assistance in solving all key issues related to the further development of the Karachaganak field.»