Gazprom and Rosneft to Jointly Develop Caspian Field

Gazprom and Rosneft have entered into a production sharing agreement for Kazakhstan's Kurmangazy Caspian offshore oil and gas field. Russia and Kazakhstan signed a bilateral agreement on the division of the Caspian seabed in May, under which the Kurmangazy and Khvalynskoye fields are considered Kazakh territory and Centralnoye is considered Russian territory.

Kazakh state-owned gas company Kazmunaigaz will own 50% of the Kurmangazy PSA. Gazprom and Rosneft will own a total of 25%. The Russian companies said they will bid together for the remaining 25%. They already develop oil and gas fields together in western Siberia and the Barents Sea.

Kazmunaigaz welcomes the participation of "such important Russian companies" in the project, said company spokesman Rem Nigmatulin. He said Kazmunaigaz will use its own capital to finance its half of the PSA, and also attract foreign investors and local pension funds. He said the project has proven to be popular with investors, who have already sent many requests to Kazmunaigaz. "It's easier to name those few companies that aren't interested in financing the Kurmangazy development than those that are interested," he said. He couldn't give the estimated reserves of Kurmangazy as no exploratory wells have been drilled yet, but said the reserves are expected to be huge.