Operator to invest over $1.7 bln in growth project at Kazakhstan's Karachaganak field by 2027

10 Mar 2023 13:20

Operator to invest over $1.7 bln in growth project at Kazakhstan’s Karachaganak field by 2027

ASTANA. March 10 (Interfax) – Karachaganak Petroleum Operating B.V. (KPO) plans to invest more than $1.7 billion in the expansion of the production capacity at the Karachaganak field in Kazakhstan by 2027.

Kazak President Kassym-Jomart Tokayev during his visit to the West Kazakhstan region on Thursday met with the management of Karachaganak Petroleum Operating.

“KPO General Director Giancarlo Ruiu said that the first phase of the expansion project, in 2021-2024, entails the construction of the fifth injection compressor and other production facilities. This phase provides for a $970-million investment and the creation of 3,500 jobs. The next phase, from 2023 to 2026, will see the construction of the sixth injection compressor with $735 million investment and 1,300 new jobs,” the presidential press service said.

The total investment will reach $1.705 billion by 2027.

The Karachaganak expansion project “will increase production of the liquid fraction to 46 million tonnes and bring additional revenue both to Kazakhstan and its partners.”

The consortium together with the Energy Ministry, is developing a feasibility study for a new gas processing plant. The new plant is expected to ramp up the production of gas to 4 billion cubic meters and the propane-butane fraction to 0.5-0.6 million tonnes a year.

Investors have raised nearly $30 billion for the development of the Karachaganak field since signing the final production-sharing agreement in 1997.

The Karachaganak oil and gas condensate field is one of the largest in the world. Its reserves are estimated at 1.2 billion tonnes of oil and 1.35 trillion cubic meters of gas. It is operated by Karachaganak Petroleum Operating, which is owned by Shell with 29.25%, through its 100% affiliate BG Karachaganak, Eni with 29.25%, Chevron with 18%, Lukoil with 13.5% and KazMunayGas with 10%.