Karachaganak Petroleum Operating B. V. (KPO) announced that the Karachaganak project partners have signed the Authorization Agreement on the Fourth Gas Injection Compressor Project, the KPO Corporate Relations Department reports.
As KPO General Director Edwin Blom noted, the authorization of the 4th Gas Injection Compressor Project is a significant achievement and the beginning of the most important stage in the development of the Karachaganak field.
“The project is aimed at extending the plateau of liquid hydrocarbons extraction, which, in turn, will help to gain significant additional profit for the Republic of Kazakhstan and the Karachaganak partner companies. The expected economic return should also provide funds for the implementation of further investment projects at the Karachaganak field,” KPO statement says.
As explained, the 4th Gas Injection Compressor Project is one of three Projects for the plateau extension, including the KPC Gas Debottlenecking Project and the 5th Trunkline Project, which are under implementation.
According to the Company, the level of extraction in 2018 amounted to 148 million barrels (in oil equivalent) of stabilized and unstabilized liquid hydrocarbons, crude and fuel gas. At the same time, the volume of gas injection for maintaining reservoir pressure was 8.6 billion cubic meters, which approximately corresponds to 45.4% of the total volume of gas extracted.
Since 1998, Karachaganak partners have invested $24 billion in the development of the field, while the amount of direct payments to the budget of the Republic of Kazakhstan amounted to $17 billion. KPO directed $380 million for the implementation of environmentalprotection measures.
“Last year, KPO facilitated the localization of 8 types of goods in the amount of $70 million and 8 service packages in the amount of $390 million,” said Edwin Blom, whose words are quoted by the KPO Corporate Affairs Department.
According to him, KPO became the first company in Kazakhstan that placed an order for the repair of high-pressure gas turbines in the Kazakhstani service center in the city of Uralsk, as well as the first international consortium that used local drilling bits, which is a major step forward in the development of local content.
At the end of 2018, the share of local content of KPO in the supply of goods, works and services reached 60%, which in monetary terms amounted to $474 million. In general, since the signing of the FPSA in 1997, the share of local content in the procurement of KPO exceeded $7 billion.
At the same time, according to the operator, the share of Kazakhstani employees inthe total number of technical personnel and supervisors in 2018 amounted to 95% andin the number of managers – to 77%. Since the signing of the FPSA, more than $218 million has been allocated for training Kazakhstani specialists.
According to the data published on the Company’s website, the Karachaganak project partners are Eni and Shell (via a 100% affiliate B. G. Karachaganak Limited), joint operators of the Karachaganak field with equal shares of 29.25%. Chevron and LUKOIL own 18% and 13.5%, respectively. On July 1, 2012, JSC NC KazMunayGas, whose share in the project is 10%, became the partner of the joint venture.