KazMunaiGas expects increase of explored oil reserves

KazMunaiGas is expecting an increase in the explored oil reserves, Tengrinews.kz reports citing deputy chairman of KazMunaiGas Magzum Mirzagaliyev as saying at the forum of oil and gas companies Oil and Gas: Kazakhstan Content-2013. “Intensification of geological exploration works is one of the key ways of increasing the resources potential. Currently the oil and gas condensate reserves of KazMunaiGas are estimated at 800 million tons. A significant growth of this value is expected,” Magzum Mirzaliyeav said. According to him, KazMunaiGas’ held 26 percent of Kazakhstan market with its 21.6 million tons of produced oil and gas condensate in 2012. Oil transport made 76.8 million tons, oil processing equaled to 15.7 million tons and gas transport made 106.5 billion cubic meters. “Growth of reserves and production of hydrocarbons is mainly related to development of the Caspian shelf. We plan to increase the level of remaining recoverable oil and condensate reserves to 1.3 billion tons by 2020. To achieve this goal the company is implementing several joint geological exploration projects with a business partner at the Caspian Sea and independently onshore,” Magzum Mirzagaliyev said. According to him, the company’s sea projects include project N, Zhambyl and Satpayev, Zhamvai, Kashagan and others. KazMunaiGas is the shareholder in Kazakhstan's three major oil and gas projects: Tengiz, North-Caspian (Kashagan) and Karachaganak. “In 2013 TCO will work to further boost its output as part of the wellhead pressure management project and the further expansion project. The designs are being prepared for these projects and the final decision on the financing is scheduled for the fourth quarter of 2013. During implementation of this project KMG will stand for increasing Kazakhstan content,” the deputy chairman said. He also added that the plan was to complete commissioning the technological networks 1 and 2 in Kashagan in 2013, introduction of the ground and sea complexes and start the production. Kazakhstan purchased its 10 percent share in Karachaganak project in 2012. By Baubek Konyrov