U.S. Oil Producers Reassured By Kazakhstan On Key Projects

U.S. Oil Producers Reassured By Kazakhstan On Key Projects

Kazakhstan’s government offers assurances to U.S. oil producers that their projects in the country will not be affected by the latest sanctions against Russia, easing fears that the broad restrictions could hit investments with indirect links to Russia.

Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) hold stakes in Kazakhstan’s Tengiz oilfield, in which the two companies agreed last year to a $37B investment; oil from the field is exported through Russia to the Black Sea via a pipeline owned by the Caspian Pipeline Consortium, which Kazakhstan officials say will not be affected by the sanctions.

CVX, which owns 50% of the Tengiz project, says it believes the new Russia sanctions legislation does not have a material impact on the company’s existing in Eurasia or its partnerships; Russia Lukoil (OTCPK:LUKOY, OTC:LUKOF) owns a small stake in Tengiz, while Rosneft (OTCPK:RNFTF) and Lukoil own a combined 31% of the CPC pipeline.

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