Astana, Kazakhstan, April 4
By Daniar Mukhtarov - Trend:
KazMunaiGas Exploration Production (KMG EP) is ready to increase funding for geological exploration from $40 million to $300 million a year, according to the company's CEO Abat Nurseitov.
KMG EP is a manufacturing subsidiary of Kazakhstan's national company KazMunaiGas, and is among the top three oil producers of Kazakhstan.
Recently speaking at the conference in Astana, Nurseitov said that KMG EP is conducting a large analysis for carrying out the geological exploration.
"We are ready to increase funding from $40 million that we allocated in 2013, to $300 million annually. But we are ready to increase the funding if there will be attractive offer in the market," he said.
Nurseitov recalled that the geological exploration is a great risk.
"But it should be recalled that our fields are old and we need to find new deposits for our enterprises to work in the previous mode," Nurseitov said.
He added that it was possible to attain a 3.5 percent increase in the resources thanks to the geological exploration for the last five years.
"We previously stated about commercial discovery of oil at the Fedorovsky Block in western Kazakhstan. We plan to commission the Rozhskovskoe field at this block in 2017," the company's CEO added.
He said in general with the discovery at the Fedorovsky Block, the reserves of liquid hydrocarbons increased by about four million tons, while gas reserves rose by 10 billion cubic meters.
He also stressed that eight exploration wells were drilled at the deposit and seven of them gave positive results.
"This is a very successful result that only one well turned out to be 'dry'. However there could have been a 100 percent risk in the geological exploration," Nurseitov said.
He went on to add that the company intends to focus on geological exploration in Kazakhstan.
"The company's strategy on increasing assets abroad has not been cancelled, but the works will be mainly focused in Kazakhstan. The country today has 15 sedimentary oil basins according to Oil and Gas Ministry, so we have a place to work. Moreover, we intend to proceed to the depth, to the subsalt deposits, starting from 5,000 meters and deeper," he said.
Nurseitov also confirmed that KMG EP is ready to start exploration projects on the Caspian Sea shelf.
"If they offer the shelf, then we are up to the task. When we are asked whether we can go onto a shelf or not, I say that the geology onshore and offshore is the same. We have a 100-year history of oil production in the country and we are no worse than foreigners," he added.
Starting from 2003 the geological exploration has been conducted at ten exploration wells of the Fedorovsky Block's and eight of them were successful, while one well is pending testing and another well was "dry".
Translated by E.A.
Edited by S.I.