Azernews.Az

By Kamila Aliyeva

A project, as a result of which the production growth will amount to 10 million tons of liquid hydrocarbons per year, was launched at the Karachaganak field in Kazakhstan, the press service of the Kazakh Energy Ministry reported.

The project will allow the processing of additional volumes of crude gas to 4 billion cubic meters per year. They will be pumped into the reservoir to increase the level of oil production. This gas is also used as a resource for subsequent investment projects at the field.

The agreement on the project was signed by the Kazakh authority PSA LLP with the support of the Energy Ministry and shareholders of the Karachaganak project represented by Eni, Shell, Chevron, Lukoil and KazMunaiGas.

The project will allow supporting the maximum production at the Karachaganak field. This project, being one of the largest investment projects with a budget of $ 1.1 billion, will ensure the receipt of additional revenues to the budget of Kazakhstan in the amount of more than $ 3.2 billion in the period until 2037.

“Within the framework of this project, the minimum share of Kazakhstan in the procurement of goods, works and services will be 40 percent and 75 percent when hiring personnel,” the Energy Ministry said.

Earlier, Kazakh Energy Minister Kanat Bozumbayev said that the plan for the future development of Karachaganak envisages the implementation of projects to maintain the current production level: modernization of gas facilities, construction of the 4th compressor and the 5th infield pipeline. The implementation period is by 2020 with an investment volume of over $ 1.5 billion.

Kazakhstan's proven oil reserves as of early 2016 stood at 30 billion barrels, according to the BP Statistical Review of World Energy.

Tengiz, Karachaganak and Kashagan are the largest oil fields in Kazakhstan. Three oil giants will be able to bring Kazakhstan's oil production to a new level in the coming years even if new oil fields are not discovered.

With the start of oil production at the Kashagan field, the forecasts of several international organizations on oil production in Kazakhstan immediately grew.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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