20 September 2019, President of Lukoil and Chairman of the Management Board of KazMunayGaz (KMG) signed an Agreement on Joint Studies. The two companies agreed on major terms of co-operation and expressed their willingness to begin studies on mineral resources in order to evaluate the hydrocarbon potential of certain areas in the Republic of Kazakhstan. The press releases by either of the companies do not specify which specific areas will be studied.   Earlier this year, Lukoil, the Kazakhstan Ministry of Energy and KMG signed a contract for hydrocarbon exploration and production on the offshore Zhenis block. Baseline agreement on the I-P-2 offshore project was also signed this year and is expected to be finalised before the yearâs end. In addition, Lukoil and KMG partner in a number of large projects such as Karachaganak, Tengiz, Kumkol and Caspian Pipeline Consortium.  Lukoil was probably the first major oil company who reacted positively to the adoption of the new Code on the Subsurface in Kazakhstan (came into effect in June 2018). In February 2018, Lukoilâs president said that subsequent to adoption of this new legislation, the company was planning to sign new exploration/field development contracts in Kazakhstan âin near futureâ, as it viewed the new code as stimulating foreign investment in Kazakhstanâs E&P opportunities.
Lukoil and KMG have reached an agreement on joint studies on hydrocarbon potential of certain parts of Kazakhstan, areas not specified. Both companies are already involved in the Zhenis offshore block inter alia, and an agreement on the I-P-2 offshore project is expected to be finalised before year end.