Kazakhstan Chamber of Commerce in the USA

KazCham



Kazakhstan announces the existence of large hydrocarbon fields 0

Posted on October 11, 2015 by KazCham

Colibri Law Firm

Geological exploration in Kazakhstan at depths of 7,000-15,000 metres may lead to the discovery of more than twenty large hydrocarbon deposits.

The announced was made by Magzum Mirzagaliyev, Kazakhstan’s deputy energy minister, at the KIOGE-2015 oil and gas conference in Almaty.

He said that Kazakhstan’s hydrocarbon production is expected to decline in 15 to 20 years’ time, including in the country’s largest oil fields of Tengiz, Karachaganak and Kashagan.

“Filling the resource base can only be achieved at the expense of exploration, primarily in deep-lying horizons, where there is a probability of the discovery of more than two dozen major fields,” noted the deputy minister. “This project will allow us to attract large companies and to maintain production plateau at a level of about 100 million tons per year in the long term.”

The Eurasia Project is estimated to cost approximately $500 million and will be carried out over three phases: the first phase envisages the collection and processing of materials from previous years; the second phase involves large-scale research; the final phase includes the drilling of a new support-parametric well called Caspian 1 at a depth of almost 15,000 metres.

Kazakhstan, Karachaganak partners yet to reach agreement – Mynbayev 0

Posted on October 13, 2011 by Alex

(SRI) – Kazakhstan is yet to reach an agreement on buying into the Karachaganak oil and gas project, and new negotiations on the planned third phase of its development will be necessary once a deal is reached, Kazakhstan’s Minister of Oil and Gas Sauat Mynbayev said on Thursday.

“The negotiations are ongoing. There are no specifics,” Mynbayev said on the sidelines of the KIOGE oil and gas conference in Almaty, the Kazakhstan-Novosti news agency reported.

On Wednesday, Timur Kulibayev, head of the state-owned holding and investment company Samruk-Kazyna, said Kazakhstan was willing to pay up to $1.1 billion for a 10% stake in the Karachaganak project.

Third phase

Mynbayev said the parties have not discussed the planned third phase of development of the oil and gas field, which is expected to significantly increase production. Talks will start only when an agreement is reached on Kazakhstan’s stake in the project, and an ongoing dispute over tax and environmental violations is settled.

However, Mynbayev warned that a previously proposed plan for the third phase of development was “outdated and not relevant today.”

According to reports, the two sides were not seeing eye to eye on the proposed cost of the expansion during earlier negotiations, and the Kazakh authorities urged KPO to reign in what they considered escalating costs. The consortium developing the Karachaganak field reportedly estimated the cost of the third phase of the project at $23 billion, while KazMunaiGas, the state-owned oil and gas company, said the cost could be as low as $14.5 billion.

The Karachaganak oil and gas deposit is being developed by Karachaganak Petroleum Operating (KPO), a joint venture between Eni and BG Group, both of which hold a 32.5% stake, Chevron, which owns 20%, and Lukoil, which has the remaining 15%. The 40-year Production Sharing Agreement (PSA) between the consortium and the Kazakh government to develop the Karachaganak contract area expires in 2037.

SOURCE: http://silkroadintelligencer.com/2011/10/07/kazakhstan-karachaganak-partners-yet-to-reach-agreement-mynbayev/



↑ Top