Russian oil major Lukoil and Kazakh national oil and gas company KazMunaiGaz signed a memorandum on cooperation in the Caspian Sea on Monday

The document - a memorandum of mutual understanding in the area of cooperation in the exploration and development of hydrocarbons in the Kazakh and Russian sectors of the Caspian Sea - was signed by the chiefs of the two companies - Vagit Alekperov and Lyazzat Kiinov. According to the memorandum, the sides should set up a working group to manage joint projects in the Caspian within 15 days. Meanwhile, KazMunaiGaz said in a press release that the memorandum is restricted in terms of time - its lasts until November 30, 2003. By this time the sides have promised to reach agreement on setting up a joint venture to carry out geological exploration work and production in the Caspian. The memorandum notes that KazMunaiGaz and Lukoil have the significant financial resources, technical potential and experience needed to effectively implement the offshore oil and gas projects. As reported earlier, in the middle of last year the Russian and Kazakh presidents agreed on the division of the Northern Caspian and on the joint develop of three border structures - Tsentralnoye, Khvalinskoye (both belonging to Russia) and Kurmangazy (Kazakhstan).