Kazakhstan develops project on gas re-injection at Kashagan

Nov 21. Trend. Astana

By D. Mukhtarov

Kazakhstan develops project on gas re-injection at KashaganNorth Caspian Consortium North Caspian Operating Company BV (NCOC) is working on a project to re-injection of gas at Kashagan, the press service of the company told Trend.

“NCOC is working on the development of the gas re-injection project (CC01 project) and discussions are ongoing with the PSA Authority,” the source said, responding to request to comment on the information of the Bloomberg agency with regard to the delay of oil production increase from the field.

According to the spokesman, the work on the project, which includes the injection of natural gas into the reservoir, would begin this year.

Bloomberg reported, citing its sources, that the plan to increase oil production by 20 percent at Kashagan may be postponed, which will reduce the time to recoup the costs of a project worth $46 billion, which was already late for 8 years.

“Kazakhstan recommended partners to suspend plan worth $ 5 billion on production increase from 370 thousand barrels to 450 thousand barrels per day until the partners learn how the start of production will affect the field,” the sources, who asked to remain unnamed, told the agency.

According to the source the project of gas injection into the reservoir should help to increase oil production. “The consortium is holding negotiations with the competent authority – the Ministry of Oil and Gas of Kazakhstan on this project,” the press officer said.

Recall, it was initially planned to start production at the Kashagan field in 2005, but it was postponed to the end of 2012 – beginning of 2013 due to technical difficulties.

North-Caspian project is implemented under a production sharing agreement for the North Caspian Sea, signed on November 18, 1997, and includes Kashagan, Kayran, Aktoty and Kalamkas fields.

At present the Kashagan project participants are Eni, Royal Dutch Shell, Exxon Mobil, Total and KazMunaiGas, which owns equal shares (16.81 per cent), as well as ConocoPhillips – 8.4 per cent and Japan’s Inpex – 7.55 per cent.


* * *

Industrial production at Kashagan to begin in spring 2013

Nov 22. Trend. Astana

By D. Mukhtarov

Construction of the offshore field Kashagan and construction of a plant for oil in the Atyrau region is nearing completion: The production will begin next spring, Khabar television reported citing NCOC Managing Director Pierre Offlant.

It is planned to extract up to 450,000 barrels of crude a day from Kashagan at the first stage, and the capacity of Bolashak plant allows to process up to 22.5 million tons of oil and over six billion cubic meters of gas.

It is planned to begin the initial phase of development of another offshore field – Kalamkas-sea in parallel with the development of Kashagan oil. It was discussed during the visit of Prime Minister Serik Akhmetov to the region.

The oil from offshore field will flow to the complex installation of raw materials preparation, called Bolashak. The plant is designed to process up to 450,000 barrels per day, or 22.5 million tones per year. Exactly this amount of oil is planned to extract from Kashagan during the first stage.

The head of the government was informed about the technological aspects of complex oil preparation at the plant where the raw materials will be cleaned of hydrogen sulfide and other impurities prior to export. Some 56,000 tons of metalware was installed during the construction of the plant.

Currently commissioning operations, installation of energy resources are being held. Commissioning of the plant is scheduled for spring 2013. Oil consortium plans include not only the development of the Kashagan field,” manager of the exploration Ruslan Davletov said.

“We are negotiating with the government of Kazakhstan on development of Kalamkas-Sea, located a few dozen kilometers from Kashagan,” Offlant said.

Geological reserves of Kalamkas-sea estimated at no less than 200 million tons of oil. According to specialists, production will reach 1.5 million barrels per day at the peak after the production of the Kazakh offshore industry will reach the industrial level.

Kashagan field’s reserves are estimated at eight billion barrels of oil.

The Prime Minister went on one of the artificial islands, from which a production of raw materials will be carried out. Some 41 wells with depth of more than five kilometers each have been drilled on the field or in the process of drilling.