Operators of Kazakhstan's largest oil fields to set up JV

17 September 2014 12:12 (UTC+04:00)

By Aynur Jafarova

The operators of Kazakhstan's largest oil fields -- Kashagan, Karachaganak and Tengiz -- will establish a joint venture engaged in the drilling and engineering fields.

The news was announced by Kazakhstan's First Deputy Energy Minister Uzakbai Karabalin at a briefing in central Communications Service under the Kazakh President on September 16.

"With the active phase of expansion of Tengiz, Karachaganak and Kashagan projects, high-tech types of service and equipment will be needed, and we will need to use every opportunity to establish competent local companies. Optimal option is to set up joint ventures with world leaders with the assistance of advanced technologies. The establishment of joint ventures in the fields of drilling, design, providing geophysical services together with the operators of the Karachaganak, Tengiz and Kashagan project is already being worked out," he said.

Karabalin went on to add that a joint venture for drilling operations, as well as a joint venture on the design involving two Kazakh and two foreign companies has already been set up on the Tengiz field.

"The negotiations between the Italian Saipem Company and Kazakh partner on the establishment of the joint ventures on Karachaganak field are underway," he noted.

Kazakhstan, one of the five Central Asian countries, is rich with hydrocarbon reserves. The country's production comes mainly from five onshore fields - Tengiz, Karachaganak, Aktobe, Mangistau, and Uzen - and two offshore fields - Kashagan and Kurmangazy, both located in the Caspian Sea.

The recoverable oil reserves of Kashagan field are estimated at 11 billion barrels, whereas total geological raw material reserves stand at 35 billion barrels. Besides, natural gas reserves are estimated at over 1 trillion cubic meters.

The Tengiz oil field is one of the deepest and largest oil fields in the world. Reserves of the deposit are estimated at 750 million to 1.1 billion tons (6-9 billion barrels) of recoverable oil.

Karachaganak is one of the world's largest fields. Its oil reserves amount to 1.2 billion tons, while those of natural gas are 1.35 trillion cubic meters.

The oil production in Kazakhstan amounted to 81.7 million tons in 2013 which is 3.2 percent more than 2012. The forecasts show after 2020 around two million barrels of oil will be produced in Kazakhstan per day. The country plans to produce 83 million tons of oil, 41 billion cubic meters of gas, as well as to process 14.7 million tons of oil in 2014.