Tuesday, 21 July 2020 10:06

Kashagan turns 20

Kashagan field is producing steadily about 370 thousand barrels per day.

The complexity of the reservoir, the presence of a high percentage of hydrogen sulfide up to 15%, as well as paraffin and mercaptans, all this complicates oil production by constant equipment repairs.

However, according to the Kazakh media, shareholders expect to recoup the project no earlier than 2040. ExxonMobil and Shell offer to extend the validity term of the North Caspian PSA after 2041 for another 20 years.

At the same time, production at the Kashagan field after completion of major repairs in 2019 reached the level of more than 370 thousand barrels per day.

In general, due to the project of future expansion of Tengiz field and expansion of the gas re-injection capacity on Kashagan field, production is projected to increase to 100 million tons starting from 2023. The Vice-Minister added that important investment projects are in the active phase of construction: managing the wellhead pressure, expansion of Karachaganak and further development of the Eastern part of Kashagan field.

In addition, it is planned to implement a large project to maintain the current production level at 11.5 million tons at Kashagan field. Total investments are estimated at around $3 billion.

As far as the further expansion of the Kashagan field is concerned, the partners are developing a concept for full scale development of the Eastern part of the field.

It should be noted that this summer marked the 20th anniversary since the opening of Kashagan oil and gas field on the Kazakhstan shelf of the Caspian sea. It is the largest hydrocarbon resource base in the entire Caspian region.

The geological reserves of Kashagan oil are 4.652 billion tons, and the reserves that can be extracted at the current level of technology are estimated at 2.065 billion tons. Gas reserves, respectively, exceed 3 trillion cubic meters, and their production depends on technological development schemes.

Kashagan is the largest field of the international North Caspian Consortium and the North Caspian Production Sharing Agreement signed by western investors and official Nur-Sultan (then Astana) in 1997.

Today, according to NCOC, the shareholders of the North Caspian project are:

KMG Kashagan B. V. (16.88%, Kazakhstan);

Agip Caspian Sea B. V. (16.81%, Italy);

ExxonMobil Kazakhstan Inc. (16.81%, USA);

Shell Kazakhstan Development B. V. (16.81%, England-Netherlands);

Total E&P Kazakhstan (16.81%, France);

CNPC (8.33% China);

INPEX North Caspian Sea Ltd. (7.56%, Japan).

Read 220 times Last modified on Tuesday, 21 July 2020 11:43
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