Lukoil Aims to Invest $270 mln in Exploration at Kazakhstan's Zhenis Block

Russia's second largest oil company Lukoil plans to invest $270 million in exploration at the Zhenis licence area in the Kazakh part of the Caspian Sea, Lukoil's president Vagit Alekperov said in Astana on Tuesday.

Lukoil and Kazakh state oil company KMG signed an agreement in principle on Tuesday for possible work on the Zhenis licence area which lies at a depth of 75 to 100 metres and is located 180 kilometres from Kazakhstan's Aktau port.

The two companies will establish a consortium after completing procedures needed for the agreement to enter force, Lukoil said. They will then negotiate with Kazakhstan to be approved to explore and produce at the block.

"The first stage (of prospecting) envisages investments of around $60 million - this is for drilling a well and for seismic work .... The second stage of prospecting is $210 million," Alekperov said.

Alekperov said a contract was due to be signed in autumn and that exploration could begin in 2019. 

Reporting by Raushan Nurshaev and Maria Gordeeva