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Kazakhstan is in talks with Russia on reducing gas supplies from Karachaganak oil and gas field to the Russia’s Orenburg-based gas processing plant once Kazakhstan completes a gas processing facility of its own in the West of Kazakhstan, Oil and Gas Minister Sauat Mynbayev told late April in an on-line conference at Bnews.kz. Kazakhstan plans a gas processing facility of its own in the West of the country to process gas from Karachaganak oil and gas field. Currently, gas from the field is processed at the Orenburg-based gas processing plant in line with the agreement dating back to 2007. “Once Kazakhstan completes the gas processing facility, gas supplies to Russia will be decreased by 5 billion cubic meters (…) However, a certain volume will still be sent to Russia as Karachaganak produces 9 billion cubic meters (…) The exact volume is to be agreed on with Russia. The talks are under way”, the Minister said. Karachaganak gas field is one of the largest in the world. Its oil reserves are estimated at 1.2 billion tons and gas – at 1.35 trillion cubic meters. At present the field is being developed by the international consortium called Karachaganak Petroleum Operating (BG Group – 32.5 %, ENI – 32.5 %, Chevron – 20 %, Lukoil - 15 %) based on the Production Sharing Agreement signed in 1997 for 40 years. On December 14 the government of Kazakhstan signed an agreement with the consortium participants purchasing a 10% share in the project. This agreement will come into force by the end of the first half of 2012. Mid-February KazMunaiGas Press Services reminded that the construction of the new plant processing Karachagank gas is scheduled for 2014-2018 after the permission from the participants of the Final Production Sharing Agreement in Karachaganak project is obtained, and without prejudice to KazMunaiGas obligations to Russia according to the Agreement on Collaboration related to the Orenburg gas processing plant.
Kazakhstan is in talks with Russia on reducing gas supplies from Karachaganak oil and gas field to the Russia’s Orenburg-based gas processing plant once Kazakhstan completes a gas processing facility of its own in the West of Kazakhstan, Oil and Gas Minister Sauat Mynbayev told late April in an on-line conference at Bnews.kz.
Kazakhstan plans a gas processing facility of its own in the West of the country to process gas from Karachaganak oil and gas field. Currently, gas from the field is processed at the Orenburg-based gas processing plant in line with the agreement dating back to 2007.
“Once Kazakhstan completes the gas processing facility, gas supplies to Russia will be decreased by 5 billion cubic meters (…) However, a certain volume will still be sent to Russia as Karachaganak produces 9 billion cubic meters (…) The exact volume is to be agreed on with Russia. The talks are under way”, the Minister said.
Karachaganak gas field is one of the largest in the world. Its oil reserves are estimated at 1.2 billion tons and gas – at 1.35 trillion cubic meters. At present the field is being developed by the international consortium called Karachaganak Petroleum Operating (BG Group – 32.5 %, ENI – 32.5 %, Chevron – 20 %, Lukoil - 15 %) based on the Production Sharing Agreement signed in 1997 for 40 years.
On December 14 the government of Kazakhstan signed an agreement with the consortium participants purchasing a 10% share in the project. This agreement will come into force by the end of the first half of 2012.
Mid-February KazMunaiGas Press Services reminded that the construction of the new plant processing Karachagank gas is scheduled for 2014-2018 after the permission from the participants of the Final Production Sharing Agreement in Karachaganak project is obtained, and without prejudice to KazMunaiGas obligations to Russia according to the Agreement on Collaboration related to the Orenburg gas processing plant.
