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BackThe Country’s Black Gold
According to BP Statistical Review of World Energy, by the confirmed oil reserves as of June 2011, Kazakhstan today is the world’s 9th largest country and it has all grounds to expect their increase in future given the estimates of our geological stocks and a large-scale geological study.
Oil production
The dynamics of production growth in the country is really impressive. In 1991, 25.2 million tons of oil were produced in Kazakhstan; the forecasted figure in 2011 is 80.4 million tons – more than a triple growth! It is expected that the level of oil production will exceed 130 million tons by 2020, and Kazakhstan will enter the world’s ten largest oil-producing countries. In this regard, Kazakhstan is one of the few countries in which peak of production is still ahead. Growth will be achieved due to the new fields (in the register of the Ministry of Oil and Gas there are 61 exploration contracts now) and due to the functioning fields.
As for the Tengiz project, under elaboration is the «Project for future development» with a possible increase in the production level from current 26 million tons/year to 36 million tons. It is expected that in the near future the project will be brought to the authorized body for consideration. A huge work has been done on the Kashagan project. The expected term of the start of the Kashagan’s commercial production is December 2012 - June 2013.
Phase I of this project envisages a production level from 370 000 to 450 000 barrels a day. Uncertainty is kept on Phase II. However, the Minister of Oil and Gas of the RКSauat Mynbayev is confident that «under close interaction of the contract companies and the authorized body, conformity of proposed decisions to the standards of the best world practice and taking into consideration the mutual interests, the project can be more successful». On site N, the national company KazMunayGas with a 51 % share is operating in partnership with the companies ConocoPhillips and Mubadala. The first exploration well (R-1) has been already drilled on the structure Rakushechnoye-Sea with the first confirmation received on the presence of hydrocarbons. Exploration works go in full conformity with the working program.
On the Zhemchuzhina site, KazMunayGas is operating in partnership with Shell (55 %) and Oman Oil (20 %). According to the results of exploration, it was also proved the oil and gas bearing structures Khazar and Аuezov. The project participants are preparing a concept for the field’s development. The blocks Satpayev and Zhambyl are at a primary stage of exploration. However, the results of conducted work confirm the considerable amount of hydrocarbons. Operations on Block Satpayev are conducted in partnership with the Indian national oil company ONGC Videsh Limited (OVL) with a share of participation from 25 % to 35 %. Block Zhambyl is operated jointly with the Korean National Oil Corporation (27 %).
In the near future the exploration will be commenced on Block Abai together with Norwegian Statoil. Later, on Blocks Khvalynskoye and Central – in partnership with the Russian Gazprom and LUKOIL. In the nearest plans is the partnership with Eni on Shagala and Isatai. In 2010 and 2011 NC KazMunayGas discovered the fields on Blocks Liman and Urikhtau. Currently under process are their supplementary exploration and assessment.