Kazakh, Russian presidents discuss supply of gas condensate processing
Kazakhstan, Astana, Oct.8 /Trend D.Mukhtarov/
The gas condensate supply from Karachanak field to Orenburg gas processing plant will be discussed by Kazakh and Russian head of states, Kazakh vice minister of oil and gas Berik Tolumbayev told journalists on Friday.
"The oil and gas ministry is researching this issue which is very important for us. I could only say that it's going to be discussed during the upcoming visit of the Russian head of state," Tolumbayev added.
The dates of presidential visit weren't specified.
The head of the KazEnergy Association, Timur Kulibayev noted that the price for gas condensate from the Karachaganak field is going to be on the agenda during the meeting.
"The price of gas condensate for the Orenburg gas processing plant is the general topic of discussion. We are going to offer commercial prices," Kulibayev added.
During his speech at the KazEnergy seventh forum, Kazakh oil and gas minister Sauat Minbayev noted that 'the parties are ready to discuss an extension of project within the third stage'.
"We are planning to discuss the specific parameters of this extension with Russia, as a considerable volume of raw gas is planned to be supplied to the Orenbug gas processing plant for processing. The other part will be supplied to gas processing plant, planned to be constructed in Kazakhstan. I suppose, all parties are interested in an accelerated determination of project parameters, "the minister added.
Previously, KazMunaiGas has reported plans on the construction of a gas processing plant in Karachaganak till 2021 with a capacity of up to five billion cubic meters of gas a year in three stages. Oil and gas minister Sauat Minbayev has reported possibilities of a reduction of Karachaganak gas condensate sale volumes to Orenburg. He named the low prices offered by Orenburg as the reason.
Realisation of Karachaganak's first and second development stages in 1990 and the beginning of 2000 enabled an increase of the field's potential and export of liquid hydrocarbons via the Caspian Pipeline Consortium pipeline. The Karachaganak Petroleum Operating (KPO) has extracted over 12 million tons of liquid hydrocarbons and some 17 billion cubic meters of gas in Karacaganak, which exceeds the indicators of 2010 by six and nine per cent respectively.
Although Kazakh government was planning to realise the third stage just after the previous stages of project development, foreign participants of KPO consortium - British BG Group and Italian Eni, American Chevron and Russian Lukoil, which have already contributed billions of investments to the field, weren't planning on it.
Later the Kazakh government stated that it will approve the third stage of Karachaganak project only under conditions of acquiring shareholder rights. Following lengthy negotiations this summer, Kazakhstan, represented by the KazMunaiGas national holding became a contractor of the Karachaganak project with a 10 per cent share
The shares were allocated as follows: 29.25 per cent for British BG Group and Italian Eni, 18 per cent for American Chevron and 13.5 per cent for Russian Lukoil and 10 per cent for Kazakhstan.
As previously reported, KPO was developing Karachaganak according to the contract, signed in 1997 for 40 years according to a production sharing agreement.
Karachaganak with reserves of 1.2 billion tons of oil and condensate and more than 1.35 trillion cubic meters of gas is one of the major oil and gas fields in the world.