Azernews.Az

By Vusala Abbasova

The Scottish oil field services company Wood Group will provide the Tengizchevroil crude storage capacity project at the Tengiz field with detailed engineering, control hardware and remote instrument enclosures in order to help increase its storage capacity.

Wood Group will assume control over the work at the Tengiz field as part of a multi-million dollar contract, which the group had won in Kazakhstan from US civil engineering outfit Bechtel.

Michele McNichol, the chief executive of Wood Group’s Mustang division, said, “We are combining the expertise and capabilities of our automation and controls personnel in the UK, US and Argentina to design and deliver a cost-effective solution that meets TCO’s needs.”

Kazakhstan, one of five Central Asian countries with rich hydrocarbon reserves, expects oil production at 92 million tons in 2020 in accordance with a forecast of socio-economic development for 2016-2020 approved by the country's Cabinet of Ministers in August 2015.

The oil production forecast in 2016 is expected to reach 77 million tons, followed by an increase to 92 million tons in 2020, which is lower than the previously forecasted data by about 3.8 million tons and 12 million tons respectively, according to the Ministry of Energy.

Energy-rich Kazakhstan produces oil mainly from its largest fields: Karachaganak and Tengiz.

The Tengiz field in the west of the country is one of the deepest and largest oil fields in the world. Total estimated reserves amount to three billion tons (26 billion barrels).

The Karachaganak field's oil and gas reserves amount to 1.2 billion tons, while its natural gas reserves are estimated at 1.35 trillion cubic meters.

About 49 percent of Kazakhstan's gas production and 18 percent of its produced oil are extracted from this field.

Another large oil and gas field – Kashagan – is located in the north of the Caspian Sea. Oil production at Kashagan started in September 2013, but its operations were suspended when a gas leak appeared along its pipeline.

Kazakhstan produced 80.845 million tons of oil in 2014, including gas condensate, which is 1.2 percent less than in 2013.

The country saw an increase in oil and natural gas production in January-July 2015, as reported by the country's Statistics Committee under the National Economy Ministry.

Tengizchevroil is engaged in the development, production and marketing of crude oil from the Tengiz field in western Kazakhstan. Tengizchevroil was founded in 1993 by the Republic of Kazakhstan and Chevron Corporation. Tengizchevroil’s current partners are Chevron (50%), KazMunayGas (20%), ExxonMobil Kazakhstan Ventures (25%) and LukArco (5%).

Scottish oil field services company Wood Group is an international energy services company with over $7 billion in sales and operations in more than 50 countries. The Group is has three subsidiaries – Wood Group PSN, Wood Group Kenny and Wood Group Mustang – providing a range of engineering, production support and maintenance management services to the oil and gas, and power generation industries worldwide.

Wood Group reported a 7.4 percent decline to $226 million in core profits during the first half of the year and a sharp decline from its production services, which it said was a reflection of lower activity in the North Sea and in U.S. shale basins.

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