Astana has formally resolved a long-running dispute over the Dunga oil and gas field, with a corresponding agreement signed at the Ministry of Energy of the Republic of Kazakhstan, according to infohub.kz.
The ministry's press service said the document settling disputed issues under the Production Sharing Agreement (PSA) for the Dunga field was signed by Kazakh Energy Minister Yerlan Akkenzhenov and Nurzhan Abdirakhmanov, general director of the operator company Dunga Operating GmbH. Representatives of the authorized body of PSA LLP and JSC NC KazMunayGas attended the signing.
The agreement will next be sent for signature to the consortium's foreign partners — Oman Oil Company Limited and PTTEP Corporation.
"The signed agreement puts a final end to the parties' long-standing disagreements over the recoverability of certain historical costs incurred by the Contractor. The arrangements reached provide for the payment of agreed financial compensation in favor of Kazakhstan, as well as the creation of conditions for continued large-scale investment in the development of the asset," the ministry said.
The settlement of the dispute allows the parties to move to the practical implementation of a new field development plan for 2026–2039. The document provides for the production of 67.4 million barrels of oil and the attraction of large-scale capital and operating investments.
"The Dunga field has high potential and is of strategic importance to the country's energy sector. The project's development was long hampered by accumulated disputed issues over non-reimbursable expenses. The arrangements reached make it possible to protect the state's economic interests without lengthy court proceedings and open the way to a new investment cycle. The signing of the agreement will become the basis for the rational and long-term development of the subsoil with tangible returns for our economy," said Kazakh Energy Minister Yerlan Akkenzhenov.