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Fieldfisher advised JSC "National Company “QazaqGaz” (QazaqGaz) on the conclusion of an agreement with North Caspian Operating Company (NCOC), the operator of the Kashagan field in Kazakhstan, for the supply of Kashagan Liquefied Petroleum Gas (LPG) to Kazakhstan’s domestic market. The agreement was signed on September 4, 2024.
According to Energy Ministry of Kazakhstan, "This step was taken due to the high demand for LPG in the domestic market of Kazakhstan".
QazaqGaz is a portfolio company of the Kazakh State Fund Samruk-Kazyna. The company manages the centralized infrastructure for the transportation of commercial gas through main gas pipelines and gas distribution networks, provides international transit, and is engaged in selling gas on the domestic and foreign markets. It also develops, finances, builds, and operates pipelines and gas storage facilities.
As of today, the NCOC consortium includes seven of the world’s largest energy companies: KazMunayGas, Eni, Shell, ExxonMobil, TotalEnergies, CNPC, and INPEX Ltd.
The Kashagan field is considered one of the world’s largest oil fields discovered in recent decades, with recoverable reserves ranging from 9 to 13 billion barrels of oil.
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Subscribe nowThis particular transaction is of great social significance, as the LPG supplies will help reduce the deficit of liquefied petroleum gas in Kazakhstan’s regions and contribute to the development of the country’s gas chemical industry. According to the agreement, Kashagan LPG will be supplied by the end of 2025, with a maximum design capacity of over 700,000 tons annually to be reached by 2027 following the completion of infrastructure work.
The Fieldfisher team played a pivotal role in the successful conclusion of the agreement and supporting documents for the deal, ensuring that all parties’ interests were aligned, and the terms of the agreement were favorable and comprehensive. The team’s dedication and expertise were instrumental in navigating the complexities of the transaction, ultimately securing a deal that will significantly benefit Kazakhstan’s domestic LPG market and gas chemical industry.
The Fieldfisher team advising QazaqGaz was led by Corporate Partner Nodir Sidikov and Corporate Director Irina Mikhnova, assisted by Associate Kuanysh Sarsenbayev and Solicitor Julia Safitova, all from the firm's Corporate CIS team.