Posted - Monday, 19.08.2013, 13:08 - Tengri News
KazTransGas National Gas Shipping Company has signed an agreement with
Kashagan consortium member companies to purchase 2.5-3 billion cubic
meters of gas a year to be produced at the giant Kashagan oilfield.
“According to the agreement, KazTransGas is to purchase all the gas to
be produced at Kashagan at the initial stage of the PSA. The planned
volume of gas to be produced is 2.5-3 billion cubic meters; this will
enable to consolidate a substantial volume of gas to be supplied to the
domestic market and international markets”, the press-release reads.
“70-80% of the gas will go to meet the domestic demand, with the other
20-30% to be exported”, KazTransGas Director General Serik Sultangali
said at a press-conference following the signing ceremony.
Commercial production at the giant Kashagan oilfield is to start as
early as in October, KazTAG reported July 18, citing the country’s newly
appointed oil and gas minister Uazakbai Karabalin as saying.
“The project is 98% complete. We have inspected the readiness of the
artificial islands that are home to drilling equipment. Hopefully, the
commercial production will start this coming October”, the minister said
while on a working tour round Atyrau oblast, a major oilbearing area in
the West of Kazakhstan.
The Kashagan field, named after a 19th century Kazakh poet from
Mangistau, is located in the Kazakhstan sector of the Caspian Sea and
extends over a surface area of approximately 75 kilometers by 45
kilometers. The reservoir lies some 4,200 meters below the shallow
waters of the northern part of the Caspian Sea and is highly pressured
(770 bar of initial pressure). The crude oil that it contains has high
‘sour gas’ content.
The development of Kashagan, in the harsh offshore environment of the
northern part of the Caspian Sea, represents a unique combination of
technical and supply chain complexity. The combined safety, engineering,
logistical and environmental challenges make it one of the largest and
most complex industrial projects currently being developed anywhere in
the world.
According to Kazakhstan geologists, geological reserves of Kashagan are
estimated at 4.8 billion tons of oil. According to the project’s
operator, the oilfield’s reserves are estimated at 38 billion barrels,
with 10 billion barrels being recoverable. Besides, natural gas reserves
are estimated at over 1 trillion cubic meters. The consortium
developing the field comprises Eni, Shell, ExxonMobil, Total and
KazMunaiGaz (all with a 16.81% stake) as well as ConocoPhillips (8.4%)
and Japan's Inpex (7.56%).
NCOC, a consortium developing the giant Kashagan oilfield, plans to
produce 75 000 barrels of oil per day at the initial production stage,
Tengrinews.kz reported mid-May 2012, citing NCOC Vice Managing Director
Zhakyp Marabayev as saying on the sidelines of a CIS summit on oil and
gas.
According to him, plans are there to bring the production figure up to
350 000 barrels a day or even up to 450 000 barrels a day at the first
stage of the oilfield development.
“The current facilities enable to produce up to 350 000 barrels a day
(…) Should the gas injection capacities be expanded, we could produce up
to 450 000 barrels a day”, he said at that time.
ConocoPhillips will sell its 8.4-percent stake in Kashagan to
KazMunaiGas for $5 billion, Tengrinews.kz reported July 3, citing the
company’s official website.
Post to be found at:
http://en.tengrinews.kz/markets/KazTransGas-National-Gas-Shipping-Company-to-purchase-annually-25-3-billion-21933/
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