Astana, Oct 29 (EFE).- Kazakhstan is reviewing the future of its joint oil and gas projects with Russia’s Lukoil after the sanctioned energy giant said it plans to sell all of its overseas assets, Kazakh Energy Minister Yerlan Akkenzhenov confirmed.
“We have not yet discussed this issue (the purchase of Lukoil’s stakes in Kazakh projects). We are studying the sanctions and need to assess their impact on companies and the economy,” Akkenzhenov told reporters Tuesday in Astana.
Lukoil holds major stakes in strategic Kazakh energy fields
Lukoil, which has operated in Kazakhstan for three decades, holds stakes in several large international consortia:
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Tengiz (5%)
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Karachaganak (13.5%)
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Caspian Pipeline Consortium (12.5%)
It also shares a 50-50 offshore partnership with KazMunayGas in the Kalamkas-Khazar project in the Caspian Sea.
According to official figures, Lukoil has:
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Invested over $12 billion in Kazakhstan’s energy sector
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Produced 94 million tons of crude and 60 billion cubic meters of gas
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Contributed $300 million to social programs
Asset sale announcement triggers market reaction
The review follows a 7.1% drop in Lukoil’s share price on the Moscow Exchange on Tuesday.
The decline came after the company said late Monday that it intends to divest from all international operations.
“Lukoil reports that, due to the introduction of restrictive measures against the company and its subsidiaries by certain countries, it is announcing its intention to sell its international assets,” the firm said in a statement.
It added that it has “begun evaluating transactions with potential buyers.”
The move, according to the Russian business daily RBC, aims to mitigate the risks associated with Western sanctions.
Sanctions tighten on Russia’s major oil producers
The U.S. government last week sanctioned Rosneft and Lukoil, Russia’s two largest oil companies, in an effort to increase pressure on Moscow to negotiate an end to the war in Ukraine.
Ukrainian President Volodymyr Zelenskyy said Tuesday that the new measures could cost Russia’s oil industry — its main source of war funding — around $5 billion per month. EFE