OPEC predicts decline in Kazakhstan's oil production in 2016
By Aynur Karimova
OPEC predicts Kazakhstan’s oil production to decline by 60,000 barrels per day to average 1.53 million barrels per day in 2016.
The oil cartel said in its January oil market report (unchanged from the previous report) that oil production declined at the Tengiz field, which is one of the largest oil field in Kazakhstan, in the second half of 2015, and this trend is likely to continue in 2016.
“Chevron was expected to implement several methods to maintain production capacity and extend production plateau at the field but these have now been put on the backburner following a 24 percent reduction in Chevron’s 2016 capex,” the report said.
On a quarterly basis, output is expected to reach 1.6 million barrels in the first quarter and 1.5 million barrels in the second, third and fourth quarters of 2016, according to OPEC.
The Kazakh government also predicts a decline in oil production in 2016. The country's Energy Minister Vladimir Shkolnik said last week that oil production in Kazakhstan will amount to 77 million tons in 2016, while 79.46 million tons of oil was produced in 2015.
BP's statistical review shows that Kazakhstan's proven oil reserves amounted to 30 billion barrels at the beginning of 2015.
Energy-rich Central Asian nation produces oil mainly from Karachaganak and Tengiz oil fields.
Karachaganak field is one of the world's largest fields. Its oil and condensate reserves stand at 1.2 billion tons, and gas reserves exceed 1.35 trillion cubic meters. As of today, almost 45 percent of gas and 16 percent of all liquid hydrocarbons produced in Kazakhstan are being extracted from this field.
The Tengiz field in the west of Kazakhstan is one of the deepest and largest oil fields in the world. Total estimated reserves amount to three billion tons (26 billion barrels).
Another large Kazakh oil and gas field is Kashagan, which is located in the north of the Caspian Sea. Oil production at Kashagan started in September 2013, but its operation was suspended after a gas leak appeared from the ground pipeline stretching from the Island D to the Bolashak plant.
Shkolnik said Kazakhstan will launch the Kashagan project this year, and "it will start from the next year to give its contribution to overall oil production."
According to his calculations, Kashagan will first produce seven
million tons, then rising up to 11 million tons next year and
further to 13 million tons.
The geological reserves of Kashagan are estimated at 4.8 billion
metric tons of oil. The total oil reserves amount to 38 billion
barrels; some 10 billion out of them are recoverable reserves.
There are large natural gas reserves at the Kashagan field - over
one trillion cubic meters.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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