Baku, Azerbaijan, Sept. 14
Trend:
The start of a major investment project at the Karachaganak field - a project on removal of gas production restrictions (RPR) of the Karachaganak processing complex has started on September 13, 2018, the Kazakh media reported referring to the Ministry of Energy of Kazakhstan.
The agreement on implementation of the project was signed between the authorized body of the Republic of Kazakhstan – “PSA” LLP with the support of the Ministry of Energy of Kazakhstan and shareholders of the project represented by Eni, Shell, Chevron, LUKOIL and KazMunaiGas companies (the Consortium). The maximum level of production at the Karachaganak field will be maintained thanks to the RPR project.
This project, being one of the largest investment projects with a budget of $1.1 billion, will provide additional revenues to the budget of the Republic of Kazakhstan in the amount of more than $3.2 billion in the period up to 2037.
As part of this project, the minimum share of Kazakhstan will be 40 percent in the purchase of goods, work and services and 75 percent in the recruitment of personnel.
This project will allow to process additional volumes of raw gas - up to 4 billion cubic meters per year. These volumes of gas will be used for injection back into the reservoir to maximize the level of production of liquid hydrocarbons, an additional increase of which will be about 10 million tons.
It will also serve as a resource for the implementation of subsequent investment projects in the field.
Currently, the project is at the stage of field service of Phase 2, which is characterized by maintenance of the annual production of about 11 million tons of liquid hydrocarbons and 16.5-17.5 billion cubic meters of gas having been achieved at Phase 2. Since the beginning of entry into force of the Final Production Sharing Agreement (FPSA), about 193.8 million tons of oil and 255.8 billion cubic meters of gas have been produced at the field. The volume of the gas injected back into the reservoir during the same period of time was about 101.8 billion cubic meters.