Karachaganak

Date: 2015-10-07; view: 625.

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Tengiz

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The Tengiz field is located in the swamplands along the northeast shores of the Caspian Sea (see Map 2). Recoverable crude oil reserves have been estimated at 6-9 billion barrels by consortium member Chevron. Tengiz has been developed by the Tengizchevroil (TCO) joint venture (ChevronTexaco 50%, ExxonMobil 25%, Kazmunaigaz 20%, LukArco 5%) since 1993. For the first half of 2005, the consortium produced 267,000 bbl/d of crude oil and condensate, or approximately 21 percent of Kazakhstan's daily crude oil and condensate production. In January 2003, after contentious negotiations with the government of Kazakhstan, the TCO consortium members initiated a $3 billion expansion project designed to boost production to approximately 450,000 bbl/d by 2006. According to Chevron, Tengiz could potentially produce 700,000 bbl/d by the end of the decade. In 2004, approximately 271,000 bbl/d were sent from the Tengiz field through the Caspian Pipeline Consortium (CPC) project to the Russian Black Sea port of Novorossiysk. Due to current government regulations against the flaring of associated natural gas, Tengiz's production during 2005 may stagnate until the field's operators can find a usage for it. A plan to reinject all the associated sour gas is due to come online by May 2006.

The Karachaganak oil and gas/condensate field is located onshore, in northern Kazakhstan, near the border with Russia's Orenburg field. Karachaganak is being developed by the Karachaganak Integrated Organization (KIO), a consortium led by Britain's British Gas (BG) and ENI (Italy). According to BG, the field holds reserves of more than 2.4 billion barrels of oil and 16 Tcf of gas, recoverable over the 40-year life of the project. Oil and condensate production from Karachaganak averaged 230,000 bbl/d during the first half of 2005, representing 18 percent of total Kazakh production. The consortium members aim to increase output from Karachaganak to 500,000 bbl/d by 2010.

In previous years, almost all of Karachaganak's crude oil production was processed at Russian facilities associated with the Orenburg field located just across the border. In April 2003, a pipeline spur southward to Atyrau was completed that connects the Karachaganak field to Kazakhstan's primary export pipeline, the Caspian Pipeline Consortium (CPC) project. The new connection has enabled increased exports from Karachaganak, and has reduced the consortium members' dependence on Russian buyers.