June 12, 2015
KARACHAGANAK PARTNERS AND KAZROSGAS AGREE MAJOR GAS DEAL

ASTANA, Republic of Kazakhstan, 12 June 2015 – KazRosGas, LLP and Karachaganak Petroleum Operating B.V. have announced that the Karachaganak partners and KazRosGas, LLP, a joint venture between Gazprom, OSC and National Company KazMunaiGaz, JSC have agreed the extension of the existing Karachaganak Gas Sales Agreement (GSA) until January 2038.

The extension of the GSA is an important step in the continued development of the giant Karachaganak field, which will result in supply of additional 120-135 billion cubic meters of gas to OrenburgGasProm till the end of the contract period.  It secures enhanced value for the Karachaganak partners and the Republic of Kazakhstan.

The extension of the Agreement also guarantees the availability of a reliable market for the sale of raw gas from Karachaganak, which will enable KPO to timely commence the implementation of the long-term Projects that are aimed at the increase of volumes of liquids and gas during the duration of the FPSA.  This will ensure additional income to the budget of the Republic of Kazakhstan.

In addition, the GSA extension will result in a stable supply of gas to the domestic market of the Republic of Kazakhstan, including swap transactions, on a long-term basis.

Today, Karachaganak is one of the largest international projects in Kazakhstan, with total investments exceeding $19 billion.

Currently 8+ bcma of untreated Karachaganak gas is exported to the Orenburg processing facility in Russia.