BAKU, Azerbaijan, Dec. 30
By Nargiz Sadikhova - Trend:
Kashagan
The Kashagan field is located in the northern part of the Kazakh sector of the Caspian Sea. Its recoverable reserves reach approximately 9-13 billion barrels (1-2 billion tons) of oil.
The first commercial oil production started at Kashagan in 2016. The project operator North Caspian Operating Company (NCOC) shipped the first million tons of oil for export in early 2017. By mid-2017, NCOC reached an actual production level of more than 200,000 barrels per day.
Presently, NCOC includes seven big experienced energy companies, namely, "KMG Kashagan B.V." (16.9 percent), "Shell Kazakhstan Development B.V." (16.8 percent), "Total E&P Kazakhstan" (16.8 percent), "Agip Caspian Sea B.V." (16.8 percent), "ExxonMobil Kazakhstan Inc." (16.8 percent), "CNPC Kazakhstan B.V." (8.3 percent) and "Inpex North Caspian Sea Ltd." (7.6 percent).
Status
In February, Total reaffirmed its readiness to invest in major oil and gas projects in Kazakhstan, including the second development phase of the Kashagan field.
As of March, 5, Kazakhstan’s Energy Ministry is carrying out preparatory work of large-scale development concept of the country’s Kashagan field together with its operating company North Caspian Operating Company.
All objects 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.
In turn, North Caspian Operating Company which operates Kazakhstan’s Kashagan major oil and gas field is planning to implement an offshore project (Bundle 1).
The NCOC said that the implementation of the project that improves the performance of the company’s reinjection compressors is planned for 2022.
“Once successful, it will give us about 20,000 barrels of additional oil per day on top of 400,000 barrels a day,” the company said.
The company said that in 2023 it is planning to increase production by launching the 1BCMA (1 Billion Cubic Meter per Annum) Gas Plant project, (executed by the third party).
“The launch of the plant will take us to a capacity of around 450,000 barrels a day,” the company said.
The company added that NCOC and KazTransGas (KTG) have reached and signed an Agreement.
“Within the agreement, NCOC will supply approximately 1 billion cubic meters per year (1 BCMA) of Kashagan sour gas and KTG will process this sour gas to sales gas quality at the new facility,” the company added.
In April, NCOC, the Operator of the North Caspian project has developed a marine access channels project.
NCOC said that the project was developed to avoid consequences due to the falling of the Caspian Sea level followed by the sea's shallowing in the area of Kashagan offshore facilities that have limited the use of sea vessels.
The project has caused great concern and critique among the public, which then pushed the company to hold public discussions. In turn, the Energy Ministry approved the project for implementation.
In May, it was announced that the next turnaround at Kashagan oil and gas field is planned for 2022.
In July, Eni CEO Claudio Descalzi said that the company is preparing the concept for full-scale development of the Kashagan field.
As of October, 15, NCOC has finished the dredging on 15 kilometers within the Marine Access Channels project.
NCOC said that the dredging work started on June 10, 2021 and to date, the dredging has been completed at 15 km. The project impact area will total nearly 29 square km, which is 0.036 percent of the total North Caspian area.
Three cutter suction dredgers are being used to dredge the D Island evaporation pond and the western shipping canal.
Tengiz
The Tengiz oil field was discovered in 1979 and is one of the biggest and deepest oil fields in the world. The total explored reserves of Tengiz reach 3.2 billion tons, while recoverable reserves range from 890 million tons to 1.37 billion tons.
In 1993, Tengizchevroil LLP, which is the project operator, was established on the basis of an agreement between Kazakhstan and Chevron. Presently, Tengizchevroil includes Chevron (50 percent), ExxonMobil Kazakhstan Ventures Inc. (25 percent), KazMunayGas (20 percent) and LukArco (5 percent).
This year Tengiz oil field was recognized as the main driver of the country’s energy sector development. Payments to the budget from the Tengiz project implementation exceeded $143 billion over the period from 1993 to 2019.
Status
Tengizcheroil continued to report new COVID-19 cases among its personnel in January, but said that it did not affect operations at the field and that the work on the expansion project continued.
As of February 23, Future Growth Project - Wellhead Pressure Management Project (FGP-WPMP) is 80 percent complete and TCO is taking actions to safely execute critical path activities to continue advancing the project.
On April 7, pollutants were released through the chimney at the Tengiz oil and gas field, which is operated by the Tengizchevroil (TCO). This became known as a result of a video of yellow smoke being published on social media. It was later reported that the yellow smoke was a result of the automatic blocking equipment failure.
In April 15, Deputy Chairman of Kazakhstan’s Environmental Regulation and Control Committee Zulfukhar Zholdasov said that Tengizchevroil company will be prosecuted for excess emissions.
The company in turn said that it is working closely with Kazakhstan’s authorities to undertake an analysis of the reasons for the release of excess amount pollutants.
Commenting on the situation, the official said that it is not TCO’s policy to speculate.
“TCO respects the laws and regulations of the Republic of Kazakhstan and we are working closely with the Republic of Kazakhstan authorities to undertake an analysis of this event to understand the root cause. We remain focused on the health and safety of our personnel and safe operations,” the official said.
As of May 17, Future Growth Project - Wellhead Pressure Management Project (FGP-WPMP) is 81 percent complete.
On June 4, TCO has commissioned a new sulfur granulation plant at Tengiz oil and gas field which will enable TCO to process almost all liquid sulfur produced at the facility.
As of August 10, FGP-WPMP is 84 percent complete.
On November 5, FGP-WPMP achieved early oil production from a new metering station. The new metering station is the third of four metering stations, which are connected to their respective clusters of wells, as part of the oil gathering system being built for FGP-WPMP.
The 3 existing metering station clusters are already producing over 13 000 tons per day or 100,000 barrels of crude oil per day of incremental early oil production, which is aimed at keeping existing plants full, alongside improving the ultimate recovery of resources.
In December, US Chevron announced it will expand investments in Kazakhstan’s Tengiz field development in 2022. Thus, $3 billion of the company’s upstream program is planned for major capital projects underway, of which about $2 billion is associated with the Future Growth Project and Wellhead Pressure Management Project (FGP / WPMP) at the Tengiz field in Kazakhstan.
Karachaganak
Karachaganak is one of the largest oil and gas condensate fields in Kazakhstan. Karachaganak Petroleum Operating produces oil and gas from the Karachaganak field.
The shares in the consortium are distributed as follows: Eni - 29.25 percent, Royal Dutch Shell - 29.25 percent, Chevron - 18 percent, Lukoil - 13.5 percent and KazMunayGas - 10 percent.
Status
On February 24, it was reported that Karachaganak Petroleum Operating B.V. (KPO) produced 10.9 million tons of stable liquid hydrocarbons in 2020, which is KPO’s historical maximum.
Total hydrocarbon production, including raw gas export and fuel gas production, was 143.9 million barrels of oil equivalent.
In addition, 10.4 billion cubic meters of raw gas were re-injected into the reservoir, representing 51.3 percent of total gas produced (with additional 2 gas injection wells within the 5th gas injection trunk line project).
Despite the COVID-19 pandemic, Karachaganak Gas Debottlenecking Project (KGDBN) and the Fourth Injection Compressor (4IC) Project progress significantly.
As of the end of February, Karachaganak Petroleum Operating B.V. (KPO) continues to conduct full-scale monitoring of environmental components, including air, surface water, subsurface water and soil monitoring, as well as emissions monitoring (air emissions, wastewater discharges).
Particular focus is paid to the introduction of "green" technologies, waste management and measures aimed at reduction of air emissions. Since 1998, KPO has invested $432 million into various environmental activities. KPO has achieved a gas utilization rate of 99.92 percent which is also a world-class achievement. Following the results of the Certification Audit, KPO's environmental and energy management systems were recognized as effective and maintained in compliance with international standards ISO 14001: 2015 and ISO 50001:2018.
In March, General Director of the Association of Kazakhstan's Oilfield Service Companies Nurlan Zhumagulov said that Italian ENI will sign an agreement worth $1 billion for the future development of Kazakhstan’s Karachaganak oil and gas field.
He noted that the Association has held talks with the ENI on the company’s plans for an operation in Kazakhstan and the company has expressed interest in implementing and investing in more projects in the country.
In March, KPO has announced the successful completion of the Karachaganak Gas Debottlenecking (KGDBN) Project.
Edwin Blom, KPO General Director said that the successful completion of the KDGBN Project will provide the capacity to enable the delivery of the remaining expansion projects including the Fourth Injection Compressor Project, currently in the execution phase, and the approved 5th Injection Compressor project.
“These important projects are aimed at extending the duration of the liquid production plateau at Karachaganak. They will bring a significant added value and secure continued generation of revenues for Kazakhstan and the Karachaganak Partners while providing resources for further investment projects on the field and maximizing local content during execution,” Blom added.
Kalamkas-Sea field, Khazar structure
The Kalamkas-Sea field, located in the Kazakhstan sector of the Caspian Sea, was discovered in 2002. It is 120 kilometers southwest of Kashagan and very close to the Khazar field. The total recoverable reserves of the Kalamkas-Sea and Khazara fields are 70 million tons of oil.
The Khazar structure is part of the contract area of the Pearl project, which is implemented by Caspi Meruerty Operating Company (CMOC) under the PSA. In addition to Shell (55 percent), its shareholders are KazMunayGas (25 percent), Oman Oil (20 percent).
On October 21, 2019, North Caspian Operating Company (NCOC) and Shell company have announced the abandonment of Kalamkas-Sea and Khazar oil fields development plans respectively. The procedure on return of the subsoil use rights for the Kalamkas-Sea field to the country’s ownership was to start soon.
Status
In February it was announced that Kazakhstan’s KazMunayGas (KMG) National Company will officially start negotiations on participation in the development of Kalamkas-Sea and Khazar oil fields.
In March, British Petroleum (BP) company left the negotiation process on Kalamkas Sea and Khazar oil fields’ development.
In September, it was announced that Kazakhstan will start the development of Kalamkas Sea and Khazar oil fields in cooperation with Russia's LUKOIL.
In November, LUKOIL and KazMunaiGas (KMG) signed an Agreement on Principles for the Kalamkas-Sea and Khazar Project.
It is reported that the document presupposes further negotiations between KMG and LUKOIL on defining the concept, details and conditions for joint field development.
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