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Kazakhstan preparing concept for further Kashagan field dev't

Oil&Gas Materials 5 March 2021 12:10 (UTC +04:00)
Kazakhstan preparing concept for further Kashagan field dev't

BAKU, Azerbaijan, Mar. 5

By Nargiz Sadikhova - Trend:

Kazakhstan’s Energy Ministry is carrying out preparatory work of large-scale development concept of country’s Kashagan field together with its operating company North Caspian Operating Company, Kazakhstan’s Minister of Energy Nurlan Nogayev said, Trend reports citing the ministry.

The minister said that currently all objects of required for the field’s pilot development stage have been commissioned, the production capacity of the field is 400,000 barrels per day, but due to the restrictions introduced by the ministry from May 2020, the average daily production is maintained at 280,000 barrels.

Nogayev noted that this year the construction of a gas processing plant for refining raw materials extracted at the Kashagan field with a capacity of 1.1 billion cubic meters of raw gas worth $860 million is to be started.

The expected effect from the implementation of this project is the production of an additional 800 million cubic meters of commercial gas and the creation of new jobs, as well as an increase in oil production up to 10 million tons.

In addition, the Project for Future Expansion at the Tengiz field worth $45.2 billion is also being implemented (as of Jan. 1, 2021, the project costs amounted to $34.3 billion). Completion of the project is scheduled for 2023, which will oil increase production by 12 million tons per year.

“As of today, work within the project is proceeding according to the schedule, the overall progress on the project is 81 percent. The expected level of work progress in 2021 is 90 percent,” Nogayev said.

Under the Karachaganak project, investment projects are in the active phase of implementation - the removal of production restrictions on gas (LPNG) and the project of the 4th gas re-injection compressor. The launch of these projects will make it possible to additionally produce 18.5 million tons of liquid hydrocarbons by the end of the Final Production Sharing Agreement (FPSA) term, the total investments will amount to $1.6 billion.

Also in December 2020, the final investment decision was made to implement a large investment Karachaganak Expansion 1A project, which is aimed at further maintaining the level of liquid hydrocarbon production within 10-11 million tons per year, thanks to the commissioning of an additional 5th reinjection compressor raw gas.

The project budget is $970 million and the planned completion date is 2025.

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