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Kazakhstan's KazMunayGas sees decrease in 2020 oil extraction

Oil&Gas Materials 25 February 2021 15:38
Kazakhstan's KazMunayGas sees decrease in 2020 oil extraction

BAKU, Azerbaijan, Feb. 25

By Nargiz Sadikhova - Trend:

Oil and gas condensate production of Kazakhstan’s KazMunayGas (KMG) amounted to 21.7 million tons (445,000 barrels a day) in 2020, having decreased by 7.9 percent year-on-year, Trend reports citing the company.

In turn, natural and associated gas production decreased by 3.1 percent to 8.1 billion cubic meters.

KMG’s share in oil production at Tengiz declined by 11.2 percent year-on-year to 5.2 million tons (115,000 barrels a day), and gas production decreased by 9.5 percent to 2.9 billion cubic meters. Obligations to restrict oil production under the OPEC+ agreement had a significant impact on the decline in oil production, the company said.

Oil production at Kashagan increased by 7.2 percent to 1.2 million tons (27,000 barrels a day). Natural and associated gas production increased by 8.3 percent to 758 million cubic meters.

“Oil and gas production increased as a result of the conducted overhaul in 2019, which led to the higher operational efficiency of offshore and onshore facilities, as well as an increase the injection fund from 4 to 6 wells, installation of additional reboilers on oil processing lines. The planned potential oil production at 1.3 million tons was not achieved due to restrictions under the OPEC+ agreement. In 2020, the average gross daily production at Kashagan (100 percent) amounted to 328,000 barrels a day,” the company said.

Oil and condensate production at Karachaganak increased by 7.8 percent to 1.0 million tons (23,000 barrels a day). Gas production amounted to 2.02 billion cubic meters, up by 8.6 percent year-on-year.

“The growth of oil and gas production is associated with modernisation of the facilities of Karachaganak Processing Complex and gas-processing units after planned preventive maintenance in September-October 2019 as well as an increase in gas injection in the summer after the commissioning of new gas injection wells of the 5th trunk line,” the company said.

Oil production at KMG-operated assets decreased by 8.8 percent year-on-year to 14.1 million tons (279,000 barrels a day). Gas production decreased by 6.6 percent to 2.4 billion cubic meters.

“The decrease in oil production volumes at KMG-operated assets was mainly attributable to obligations undertaken under OPEC+ agreement, as well as the natural decline in production levels at mature fields,” the company said.

KazMunayGas (KMG) National Company is the Kazakhstan operator for exploration, production, refining, and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan.

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