Kazakhstan: Karachaganak Operator Fined

Kazakhstan: Karachaganak Operator Fined

A specialized economic court of Kazakhstan’s West Kazakhstan region satisfied a suit of the state enterprise Kapitalneftegaz against operator of Karachaganak oil field – Karachaganak Petroleum Operating B.V., the court said in a message March 7.

Kapitalneftegaz conducted an inventory of state property transferred to Karachaganak Petroleum Operating B.V. (KPO) and went to court when revealed absence of 16 inventory objects worth 10.4 million tenge (316 tenge = $1).

The court sentenced Karachaganak Petroleum Operating B.V. to fine in the amount of 10.4 million tenge to the republican budget for caused damage. The fine has been paid off.

Karachaganak field, located in the West Kazakhstan Region, is one of the largest oil and gas condensate fields in the world. Its reserve is estimated at over 1.2 billion tons of liquid hydrocarbons and 1.3 trillion cubic meters of gas.
The field gives almost 45 percent of the total gas and 16 percent of the total liquid hydrocarbons produced in Kazakhstan.

Karachaganak is being developed within the production sharing agreement (PSA) reached between Kazakhstan and a consortium that includes Royal Dutch Shell (29.25 percent), Eni (29.25 percent), Сhevron (18 percent), Lukoil (13.5 percent) and KazMunaiGas (10 percent).

In 2016 KPO produced 139.7 million barrels of oil equivalent of stable and unstable liquids, raw gas and fuel gas compared to 141.7 million barrels of oil equivalent in 2015.