The results of Alexey Miller and Vagit Alekperov’s working meeting
A working meeting between Alexey Miller, Gazprom’s Management Committee Chairman, and Vagit Alekperov, LUKOIL’s President, was held today at Gazprom’s Headquarters.
The parties examined implementation of the General Agreement on strategic partnership between Gazprom and LUKOIL for 2002–2005. The parties decided to set up a joint permanently operating working group to resolve issues related to the General Agreement implementation. The meetings of the joint working group are to take place on a monthly basis.
A. Miller and V. Alekperov paid special attention to the prospect for developing the Tsentralnaya structure located in the northern Caspian Sea by TsentrCaspneftegaz, a Gazprom and LUKOIL’s joint venture, together with the Kazakhstan-based KazMunaiGaz company. In particular, the parties addressed the issues of providing feasibility study for the Production Sharing Agreement and of re-registering LUKOIL’s license to develop natural resources of the Tsentralnaya structure in favor of TsentrCaspneftegaz.
The parties also discussed the Draft Agreement on the main principles of the members’ relationship while financing TsentrCaspneftegaz. The Document was elaborated in December 2003 by Gazprom and LUKOIL’s specialists to provide sustainable functioning of the joint venture and, primarily, to promptly arrange for timely financing of TsentrCaspneftegaz by its members. A. Miller and V. Alekperov decided to speed up preparation and coordination of this Document in order to sign it before February’s end of 2004.
LUKOIL and Gazprom’s cooperation is based on the General Agreement on strategic partnership between Gazprom and LUKOIL for 2002–2005, signed in November 2002.
The Document determines main directions of mutually advantageous cooperation between the 2 companies: oil and gas exploration, production, transportation and processing; oil and gas as well as refined products marketing; chemistry and petrochemistry; power and heat generation and marketing; manufacturing of oil and gas field, power and other machine building equipment; development of production capacities and infrastructure facilities in the aforementioned types of activities, sci-tech, informative, ecological, social and staff facilities apply.
Within the frames of the Agreement, the companies agreed to jointly implement projects on oil and gas field exploration and development within the Yamal-Nenets Autonomous Region (YaNAR), the Nenets Autonomous Region (NAR) and the Russian part of the Caspian Sea. The agreements achieved envisage joint participation in tenders and auctions held to grant the right to develop the natural resources of these regions. The parties also plan to promote cooperation in oil and gas condensate ship-based transportation from the YaNAR and NAR northern areas.
In July 2003, Gazprom and LUKOIL set up on a par the TsentrCaspneftegaz joint venture to develop the Tsentralnaya structure in the Caspian Sea together with the Kazakhstan-based KazMunaiGaz company. The Tsentralnaya structure is located within the Russian sector of the Caspian Sea, 150 km east of the city of Makhachkala.
According to LUKOIL’s specialists’ estimates, the recovered oil and associated petroleum gas resources of the Tsentralnaya structure account for 521.1 million tons and 91.7 bcm, respectively. The conducted survey studies confirm the economic viability of the project.
In October 2003, Gazprom and LUKOIL signed the Agreement on LUKOIL’s gas deliveries from the Nakhodkinskoye gas field of the Bolshekhetskaya Trough to the YaNAR.
Information Directorate, OAO Gazprom