SOCAR may enter Dunga field development project in Kazakhstan - EXCLUSIVE

The State Oil Company of Azerbaijan (SOCAR) has expressed interest in participating in the Dunga field development project in Kazakhstan, Kazakh Vice Minister of Energy, Sanzhar Zharkeshov, told Report.

The deputy minister noted that the energy ministries of Kazakhstan and Azerbaijan are actively working to expand cooperation in oil exploration and production between the national companies KazMunayGas and SOCAR.

"A memorandum has been signed outlining a wide range of potential joint projects. In particular, regarding the Dunga field, located in the Mangystau region, SOCAR has expressed its desire to participate in the project. Active negotiations are currently underway, and we await the results from the Azerbaijani Ministry of Energy. Kazakhstan, for its part, is ready to provide comprehensive support," Zharkeshov noted.

The Dunga oil and gas field is located in the Tupkaragan district of the Mangystau region. The field's geological reserves amount to 106 million tons of oil and over 6 billion cubic meters of gas. The field was discovered in 1966. The Dunga project is being implemented under the Production Sharing Agreement of May 1, 1994, concluded between Oman Oil Company Limited and the Government of Kazakhstan.

In 2023, KMG acquired a 60% stake in the project from the French concern TotalEnergies. As part of the transaction, the operating company was renamed Dunga Operating GmbH. The current project participants are KazMunayGas (60%), Oman Oil Company Limited (20%), and Partex Kazakhstan Corporation (20%), collectively referred to as the "contractor." Dunga Operating GmbH is the project operator.