Investments in offshore fields to grow

 

7 projects are being implemented within the framework of the State-run Programme of Development of the Kazakh sector of the Caspian Sea. These are: North Caspian, Kurmangazy, Contract No341, Zhambai, Tyub-Karagan, Atash and Zhemchuzhina. New projects on the KSCS are the N area, Zhambyl, Abai, Isatai, Darhan and Satpayev. The Tsentralnoye and Khvalynskoye projects are under operation in the Russian sector of the Caspian Sea.

The structure of Kurmangazy with expected recoverable reserves of 980 mln tons of fuel equivalent, is located in the Northern Caspian area. The water depth is 4-6 m. PSA on this structure was signed in July 2005 between MEMR of Kazakhstan and KazMunayTeniz JSC representing one party and RN-Kazakhstan LLC representing the other party. The first wildcat well drilled in summer 2006 showed no signs of hydrocarbons. The major goals for 2007-2009 are to scrutinize the geological model of the deposit, to define a location of wildcat well No2 and proceed to well construction.

The activities carried out in 2004-2005 under the Tyub-Karagan project implemented 50% by KazMunayTeniz JSC and 50% by Lukoil included comprehensive 2D seismic operations in the volume of 675 km and drilling of the 2,500-meter wildcat well. The goals set in 2006 are to carry out the electrical survey, to scrutinize and sum up geological-geophysical materials considering the drilling data. To define a location of the second wildcat well and construct a 2,500-m hole is projected for 2007-2009. 

The expected geological reserves of Atash are estimated at 248.8 mln tons of fuel equivalent, the project is operated by Atash Company LLP, the joint venture of KazMunayTeniz JSC (50%) and Lukoil OJSC (50%). The seismic works were carried out in the volume of 1,057 km; later the seismic data were processed and reprocessed. The year 2006 brought seismic operations and preparatory works for well drilling. The plans for 2007-2009 are to study the geological structure of the Atash area and construct a wildcat well.

The possible geological reserves of Atash are estimated at 248.8 mln tons of fuel equivalent, the project is operated by Atash Company LLP, the joint venture of KazMunayTeniz (50%) and Lukoil (50%). The seismic works were carried out in the volume of 1,057 km; later the seismic data were processed and reprocessed. The year 2006 brought seismic operations and preparatory works for well drilling. The plans for 2007-2009 are to study the geological structure of the Atash area and construct a wildcat well.

The expected geological reserves of Zhambai are estimated at 337 mln tons of fuel equivalent. The 2D seismic survey in the volume of 1,020 running kilometers was implemented in 2003-2005 to scrutinize the geological structure of prospective structures and define a location under exploratory wells.

The implemented works resulted in discovering of three prospective structures - Korasan, Karabulak and Edil. Construction of a road, barges and a well is scheduled for 2007-2009.

The validity of the contract on the Aral project was extended for two more years till February 26, 2007 according to the Addendum No 1 dated November 18, 2004. Last year this structure underwent 2D field seismic survey in the volume of 210 running km. A wildcat well was drilled on the Western Kulandy to the design depth of 1,800 m. The works carried out on the Eastern Kulandy in 2006 included implementation of 2D seismic works in the volume of 250 km and commenced drilling of the exploratory well to the design depth of 2,000 m.

The expected recoverable reserves on the Zhemchuzhina project made up 97 mln tons of fuel equivalent, the participating interests within the project are: KazMunaiGas JSC (25%), Oman Oil Company (20%) and Shell (55%). The works were carried out to ensure transfer of KMG's share within KazMunayTeniz JSC. Minimum working programme on PSA is planned to start. The plans for 2007-2009 are to construct one well on the Zhemchuzhina 1 and another well on Zhemchuzhina 6.

The talks with the competent body are in the process now in order to coordinate PSA provisions on the N structure (expected geological reserves are 637 mln tons of fuel equivalent). KazMunaiGas and the Korean Consortium signed the Memorandum of Understanding on the Zhambyl project. The recoverable reserves of the area are 172 mln tons. The Memorandum of Understanding with Norwegian Statoil on the Abai structure was signed in June 2005. The expected geological reserves of the area are estimated at 387 mln tons of fuel equivalent. This year the talks with the competent body will be continued to obtain the right to subsoil use based on PSA provisions on the Isatai structure. The expected geological reserves of the area are 240 mln tons of fuel equivalent. The talks on the Darhan project are scheduled for 2007. The expected geological reserves of the area are 1,505 mln tons of standard fuel.

There are three prospective structures on the Satpayev area. These are: Satpayev, Eastern Satpayev and Karina. The expected recoverable reserves of the deposit are 253 mln tons.

KazMunaiGas JSC and ONGC Videsh Limited signed the Memorandum of Understanding on February 18, 2005. The Khvalynskoye and Tsentralnoye projects are developed jointly with Lukoil.

Following our forecasts, oil production on the Caspian shelf will continue growing and by 2015 will reach 89.2 ml tons. Totally 19 wells were drilled in 2003-2005 - 15 exploratory and 4 production and injection wells.

Following our forecasts, 16.8 bln USD will be invested in KSCS by 2015.