BAKU, Azerbaijan, October 5. Kazakhstan’s Energy Ministry and Dunga Operating GmbH signed today an agreement to settle disputed issues under the Production Sharing Agreement (PSA) for the Dunga oil field, according to the ministry.
The agreement was signed in Astana by Kazakhstan’s Minister of Energy Erlan Akkenzhenov and Dunga Operating GmbH CEO Nurzhan Abdirakhmanov, with the participation of representatives of PSA, the authorized body, and KazMunayGas NC JSC.
The agreement will subsequently be sent to the consortium’s foreign partners, Oman Oil Company Limited and PTTEP Corporation, for signing.
The agreement puts a final end to long-standing disagreements between the parties over the recoverability of certain historical costs incurred by the Contractor.
The agreements reached provide for the payment of an agreed financial compensation to Kazakhstan, as well as the creation of conditions for continued large-scale investment in the development of the asset.
The settlement of the dispute will allow the parties to proceed with the practical implementation of a new Field Development Plan for 2026–2039.
The plan envisages the production of 67.4 million barrels of oil and the attraction of substantial capital and operating investments.
“The Dunga field has high potential and is of strategic importance to the country’s energy sector. The development of the project was hindered for a long time by accumulated disputes over non-recoverable costs. The agreements reached make it possible to protect the economic interests of the state without lengthy court proceedings and pave the way for a new investment cycle. The signing of the agreement will serve as the basis for the rational and long-term development of the subsoil, with tangible returns for our economy,” Kazakhstan’s Energy Minister Erlan Akkenzhenov said.
According to the ministry, the consensus reached confirms Kazakhstan’s commitment to maintaining a stable and predictable investment climate.
"The Kazakh side has consistently advocated open dialogue that makes it possible to find mutually acceptable solutions while taking into account national priorities and the interests of international partners that have been operating in the country since 1994", the ministry states.
