Lukoil Teams Up with KazMunayGas in Caspain Sea

Lukoil and KazMunayGas have entered an agreement whereby Lukoil will provide financing for KazMunayGas to carry out development work in the northern part of the Caspian Sea. Initial costs for seismic research and two - four exploration wells is estimated to be between $150 million - $170 million.

A memorandum of mutual understanding for cooperation to develop and produce hydrocarbons in the Kazakh and Russian sectors of the Caspian was signed in Almaty in the first half of February 2003. According to the memorandum, KazMunayGas and Lukoil will carry out exploration work between the Khvolynsky and Central fields in the Russian sector of the Caspian and the Tubkaragan field in the Kazakh sector.