Kazakhstan hopes for Karachaganak gas field deal by year-end
Kazakhstan hopes to settle a dispute with global energy companies developing the Karachaganak gas condensate field in the coming weeks, Energy Minister Kanat Bozumbayev told reporters on Monday.
“I hope that before the end of this year we and the (Karachaganak) shareholders… will invite you to a table where we will sign something,” Bozumbayev said, adding that progress had been made in the talks “in Kazakhstan’s favor”.
Kazakhstan filed a $1.6 billion claim against foreign firms developing the Karachaganak gas condensate field in 2015, one of the companies has said.
The Energy Ministry has said the row was over how each party’s share in the field’s output was calculated.
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.
Karachaganak oil field is being developed within the Production Sharing Agreement reached between Kazakhstan and consortium of Western companies.
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.