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Source: Recalculation of oil reserves in large field of Kazakhstan to be completed by end 2014

Oil&Gas Materials 10 August 2013 13:36 (UTC +04:00)
The shareholders of project for development of “Karachaganak” field in Kazakhstan should complete the recalculation of oil reserves in the field by the end of 2014.

Kazakhstan, Astana, August 10 / Trend D. Mukhtarov /

The shareholders of project for development of "Karachaganak" field in Kazakhstan should complete the recalculation of oil reserves in the field by the end of 2014, the representative of one of the shareholders of project for development of "Karachaganak" field told Trend.

"We should carry out the recalculation of oil reserves, as we enter the next phase of development of the field. The calculation of the reserves is necessary for determining the future technical scheme for the field's development on its basis. We should complete the calculation of reserves during 2014," the source said.

The interlocutor of the agency reminded that, around 11 million tons of liquid hydrocarbons (oil plus condensate) and about 16 billion cubic meters of gas is produced in "Karachaganak" field.

"But it is planned to keep the oil production at the same level, and to increase gas production in the future. Meanwhile, "KazMunaiGas" proposed to inject the all produced gas back to the reservoir in order to restore the reservoir pressure, as the current development of the field leads to catastrophic decrease of reservoir pressure, which can cause unwanted outcomes. This position is also backed by the Republican Oil Ministry. This issue is currently being discussed by the shareholders of the project," the source noted.

Karachaganak Petroleum Operating B.V is the consortium of companies, which were united for implementation of Karachaganak project for development of Kazakhstan's oil industry. After the part of the shares was handed over to Kazakh National Company, the shares are distributed as following: British Gas Group (BG Group) (Great Britain) - 29.25 per cent, Eni (Italy) - 29.25 per cent, Shevron (USA) - 18 per cent, Lukoil (Russia) - 13.5 per cent, KazMunaiGas (Kazakhstan) - 10 per cent.

Karachaganak Petroleum Operating is the operator of one of the largest oil and gas condensate fields in the world.

The consortium carries out its activity in accordance with the Final Production Share Agreement (FPSA) signed between the partners on international consortium and Kazakh government in November, 1997.

According to the provisions of the agreement, the consortium will carry out the management of Karachaganak project till 2018. According to FPSA provisions, no taxes and fees are imposed on its participants.

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