Kazakh Nostrum Oil & Gas reaches record daily production in 2013

Oil&Gas Materials 4 February 2014 13:09 (UTC +04:00)

Baku, Azerbaijan, Feb. 4

By Elena Kosolapova - Trend:

Nostrum Oil & Gas LP, the oil and gas exploration and production partnership with assets in north-western Kazakhstan, reached record daily production in 2013, the company reported on Feb. 3.

Company's average daily production hit 46,178 barrels of oil equivalent per day compared to 36,940 barrels of oil equivalent per day in 2012.

Crude oil and stabilized condensate average production hit 19,384 barrels of oil equivalent per day, liquid petroleum gas production hit 4,259 barrels of oil equivalent per day, dry gas production hit 46,178 barrels of oil equivalent per day in 2013.

Full year revenues are expected to be $895 million compared to $737 million in the equivalent period in 2012, and EBITDA is expected to be above $500 million compared to $460 million in the equivalent period in 2012.

"Nostrum continued progressing towards the target to more than double 2013 production by the end of 2016. Infrastructure expansion remains key to supporting this growth, and the focus in 2014 and 2015 will be on the on-going work at the third train of the gas treatment facility," the company said.

At present Nostrum is in the final stages of procurement and in the initial stages of detailed engineering for the GTF. As of January 30, 2014 Nostrum has agreed terms with three suppliers for the supply of equipment totaling approximately $75 millions and anticipates that in the coming weeks terms will be agreed with suppliers for an additional $60 million of equipment. Nostrum anticipates that all procurement contracts for major equipment will be signed before the end of the first half of 2014. Construction work will also be continuing at the site. Based on the timetable for the construction, it is anticipated that the plant will be completed and commissioned by mid-2016. The total cost is estimated to be below $500 million.

Moreover the company plans to drill four-five production wells during 2014 to maintain production above the 45,000 barrels of oil equivalent per day target.

Nostrum Oil & Gas LP is an independent oil and gas enterprise currently operating in north-western Kazakhstan.

Its main asset is the Chinarevskoye field located in the northern part of the oil-rich pre-Caspian basin. Other assets currently include the Rostoshinskoye field, the Darjinskoye field, and the Yuzhno-Gremyachenskoye field, which are all located in the vicinity of the Chinarevskoye field and its Gas Treatment Facility (GTF).

Nostrum Oil & Gas LP focuses on creating long-term shareholder value through the discovery and development of oil and gas reserves as well as the production and sale of crude oil, stabilized condensate, LPG and dry gas. The Partnership is committed to a long-term strategy of developing its hydrocarbon fields efficiently, as part of its environmentally friendly and socially responsible approach.

Edited by CN