Gasprom and LUKoil could obtain license for central field in quarter 1, 2014

The license for development of Central field on the north of the Caspian Sea could be issued to Gasprom and LUKoil in quarter 1, 2014, Russian Minister of Natural Resources Sergei Donskoy told RIA Novosti.

“We have been working with the Foreign Ministry to specify the positions with the executive authorities. I think we will submit it to the government till the end of the year and the decision will be made in quarter 1, 2014,” Minister said.

The license for geological exploration of Central field belonged to CentreCaspneftegas company, the shareholders of which are LUKoil and Gasprom on a parity basis. During geological exploration CentreCaspneftegas has discovered the field with the resources of 169.1 million tons of conditional fuel. But the license for geological exploration has expired and LUKoil and Gasprom failed to receive a license for production, because of the demands of the Russian legislation, according to which only the companies with state share over 50% can develop onshore fields.

Russian Minister of Energy Alexander Novak told journalists in October 2013 that Russian Premier Dmitrii Medvedev has instructed to solve the issue of license for development of the onshore fields issued to the non-government companies till the end of the year.

* Oil and gas condensate field Central is located on the north of the Caspian Sea. The operator of the field is Centrecaspneftegas, in which LUKoil and Gasprom hold 25% each and KazMunaiGaz – 50%. According to the Kazakhstan’s company, total extractible resources of the Central field reach 101.4 million tons of oil, 7.5 million tons of condensate and 161.1 billion cub.m. of gas.—0--