Astana, Kazakhstan, Dec.11
By Daniyar Mukhtarov - Trend:
The Tengiz Future Growth Project will be completed in 2019, a Kazakh oil worker close to the project told Trend on Dec.11.
"The oil that must be produced with the launch of the Future Growth Project (FGP) at Tengiz, will be available no earlier than 2019. Following the completion of FGP, major volumes of Tengiz oil will be transported via the Caspian Pipeline Consortium (CPC) and the remaining volumes through more beneficial routes," the source said.
The source didn't rule out the possibility that a part of Tengiz oil will be transported to China via the Kazakhstan-China pipeline following the launch of the Future Growth Project.
"As is known, after the expansion at Tengiz, oil production will increase from 26 million tons to 38 million tons. Nearly 30 million tons will be sent for export via CPC and the remaining eight million tons will be transported either via Baku-Tbilisi-Ceyhan, though the Taman port in Russia, or though the Kazakhstan -China pipeline in China," the source said.
The implementation of the Future Growth Project at Tengiz will begin next year, the source added.
"Part of the work will begin in the first half and another part in the second half of the year," the source added.
It can be recalled that in November 2013, the Kazakh government and Tengizchevroil LLP (TCO) signed a Memorandum of Understanding (MOU) that sets out mutual commitments to progress TCO's plans to increase production of Kazakhstan's Tengiz field.
The project envisages an increase of oil production at the Tengiz field from 26 million tons to 38 million tons of oil per year.
The signing of the MOU is an important milestone on the path towards a Final Investment Decision for the projects by TCO partners.
"The MOU aligns the government of Kazakhstan and TCO on the pursuit of common goals in the development of TCO's Future Growth and Wellhead Pressure Management Projects (FGP and WPMP) and outlines tasks to be executed by the signatories in order to execute FGP and WPMP," Kazakhstan's Minister of Oil and Gas Uzakbai Karabalin said.
FGP will utilise sour gas injection technology used in existing operations to expand the production capacity by approximately 12 million tons per year.
Through installation of a central pressure boost facility, WPMP will maintain the volumes and pressure of crude oil delivered to the existing Tengiz crude oil processing plants. The projects are currently completing the front end engineering and design (FEED) phase.
An oil stabilization plant with capacity of 12 million tons per year, accompanying power units and auxiliary systems will be constructed as part of the implementation of the Future Growth Project (FGP).The raw material will be delivered to the plant through the ring main of the new oil collecting system.
All the associated gas will be injected back into the reservoir with a few sour gas injection compressors. As a result of the new project, the recoverable reserves of Tengiz will increase by 100 million tons. Recoverable oil reserves at the field's collector will range from 750 million to 1.1 billion tons (6-9 billion barrels) by April 2033. The total proven reserves of Tengiz will increase by three billion tons (26 billion barrels) and the total proven reserves of the Royal field will increase by 190 million tons (1.5 billion barrels).
Cost of the FGP is estimated at nearly $7-8 billion with completion scheduled between 2017 and 2019.
The Tengiz oil field, opened in 1979, is one of the deepest and largest oil fields in the world. The width of the collector is 19 kilometers (12 miles) and the length is 21 kilometers (13 miles).
In spite of technological problems, industrial oil production began in 1991 with commissioning of the Tengiz oil and gas processing plant and enterprise. Two years later, Tengizshevroil LLC was created based on an agreement between Kazakhstan and Chevron.
Oil production at Tengiz has increased almost 26 times since operations commenced. Today this field provides about 30 percent of domestic oil production.
Tengizchevroil partners include Chevron, 50 percent; KazMunaiGas, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent; and LUKArco, 5 percent.
Translated by L.Z.
Edited by S.M.
Additional editing C.N.