• 05.12.2023

Announcement of holding a tender to determine the Buyer for the Share of the Republic of Kazakhstan in Oil

Dear sir/madam,

PSA LLC is acting as the Authority representing the interests of the Republic of Kazakhstan under the Production Sharing Agreement in respect of the North Caspian Sea dated November 18, 1997 (hereafter – Agreement).
In accordance with the Agreement and the Decree of the Government of the Republic of Kazakhstan, PSA LLC is determined as a recipient of the State Share of the Republic of Kazakhstan in crude oil produced on the Kashagan oilfield.
Due to the expiration of the crude oil Purchase and Sale Agreement PSA LLC is planning to conduct a Tender for the Buyer of Republic of Kazakhstan’s Share in crude oil from the Kashagan oilfield with the beginning of deliveries from 2024 (hereafter – Tender).
Planned sales volume:
Approximately 720 thousand tons for the duration of the crude oil Sale and Purchase Agreement.
Depending on the level of production on the oilfield, volumes may be adjusted.
Delivery Period: 2 years from the date of entry into force of the crude oil Sale and Purchase Agreement (effective date March 2024).
Basis of Delivery:
FOB CPC Terminal (CPC-R JSC Marine Terminal at port Novorossiysk, Yuzhnaya Ozereevka) as per “Incoterms-2010” at the edition of International Chamber of Commerce.
Price Formula*: P = B + S – D + Х
where:
P – crude oil contract (sales) price;
В – average value of Brent price (Dated) for 5 (five) quotation days, published in Platt’s Crude Oil Marketwire;
S - Spread (Spread vs Fwd Dated Brent in line of CPC Blend CIF);
D – Differential;
Х – Premium to the price formula.
*Detailed price formula will be provided in the Invitation letter for participation in the Tender.
In case of your interest we kindly ask you to send us your intention of cooperation until 9.00 a.m. (Astana time) by 25 of December, 2023 to our email: marketing@psa.kz for admission to the next stage - tendering process and provide the following information and documents:
1)   copy of Charter or Founders Agreement (if available);
2)   copy of Company Registration Certificate;
3)   copy of audited Financial statements for the previous financial year or reference to the official source (in the absence of an audited financial report for the previous financial year for the reasons provided by applicable law, a report for the financial year preceding the previous one may be submitted);
4)    confirmation of the company's commercial experience, capabilities and performance results (the copies of crude oil sale and purchase agreements or a confirmation letter, or any other relevant document proving the experience of work with the Kazakh crude oil sellers at CPC terminal;
5)    confirmation of the capability to perform a joint shipment of products of two and more sellers on one vessel (copies of crude oil sale and purchase аgreements or the agreement on joint shipment at disposition point or such confirmation letter, or any other relevant document providing a company’s capability for joint shipment of LLC «PSA» volume).