Baku, Azerbaijan, Jan. 10
By Ali Mustafayev - Trend:
The expected growth in oil prices in 2018 will positively affect the implementation of the Eurasia project, just as any other exploration project, Kazakh national oil and gas company KazMunaiGas told Azernews.
"Nevertheless, the implementation of this project will be carried out according to the agreed terms, commercial conditions and in line with the current legislation," the company noted.
The terms of the works performance are estimated at 6-7 years, according to KazMunaiGas.
Azerbaijan’s state oil company SOCAR, along with KMG Eurasia LLP, Agip Caspian Sea B.V., RN-Exploration LLC, CNPC International Ltd., and NEOS GeoSolutions signed a memorandum of understanding (MoU) on June 21, 2017 for implementation of the Eurasia project, which envisages development of the Caspian Depression in Kazakhstan.
Talks will be held on key commercial, technical and contract conditions of the Eurasia project for signing a contract for geological exploration of the Caspian Depression in line with the legislation of Kazakhstan.
SOCAR representatives are taking part in all meetings of the working groups, KazMunaiGas said.
It was highlighted that all decisions on the issues related to the Eurasia project are being taken unanimously with all potential participants of the project.
The volume of investments will be specified after negotiations, according to the company.
Prospects of oil and gas content of sedimentary basins in the territory of Kazakhstan and, in particular, the Caspian Depression, are of great interest to the state and large international oil companies, KazMunaiGas underlined.
The Caspian Depression is a low-lying flatland region encompassing the northern part of the Caspian Sea, the largest enclosed body of water on the Earth. Probable reserves in the Caspian Depression are estimated at 60 billion tons of oil. The project’s implementation is expected to provide the oil and gas industry of Kazakhstan with a stable source, letting avoid the decline in production, which may occur in 15-20 years. It will also become the foundation of the country's energy security.
The main purpose of the Eurasia project is to study the deep geological structure of the Caspian region with the aim of discovering new and large hydrocarbon deposits and establishing the regularity of their distribution at great depths.
Global oil production is likely to decrease in about 15-25 years due to depletion of reserves. Kazakhstan’s giant oil fields - Tengiz and Kashagan - are among the fields that are predicted to see reduced output after 2040.
Therefore, new oil deposits need to be found and in this regard the perspectives of the Eurasia project cannot be overestimated.