Kazakhstan retains plans to expand large oil and gas projects – Ministry of Energy

Kazakhstan retains plans to expand large oil and gas projects – Ministry of Energy

Kazakhstan retains plans to expand large oil and gas projects - Ministry of Energy

MOSCOW (Reuters) – Kazakhstan maintains long-term production plans at its largest oil and gas fields, although quarantine restrictions have led to a reduction in raw materials production and consumption of petroleum products this year, the press service of the Ministry of Energy of the republic said in a written response to Reuters questions.

The ministry did not provide a forecast for oil production in 2020 at the main Kazakh fields Kashagan, Tengiz and Karachaganak, taking into account Kazakhstan's fulfillment of obligations to reduce production under the OPEC + pact, specifying that the operators of the first two still plan to expand production in the coming years.

Earlier, the ministry informed that the operator of Kashagan, the NCOC consortium, plans to increase the production of raw materials by 2022 to 420,000 barrels per day and to 450,000 barrels per day by 2024, as well as to build a gas processing plant at the field by 2022 with a capacity of 1 billion cubic meters per year and cost $ 860 million ..

Oil production at Kashagan for eight months of this year increased by 20% compared to the same period in 2019 to 10.408 million tons, according to the Information and Analytical Center for Oil and Gas, published by Refinitiv Kortes. Oil production at Kashagan in 2020 is expected in the amount of 15.5 million tons.

At the Tengiz field, according to the Ministry of Energy, “to date, changes in the launch date and cost schedule have not been considered.”

Tengiz's operator, Tengizchevroil (TCO), is implementing a capacity expansion project worth about $ 37 billion, after which Tengiz is expected to increase oil production by 12 million from the current 29 million tons by 2025-2026.

Oil production at Tengiz decreased in eight months of 2020 by 7% compared to the same period last year to 18.2 million tons, according to Refinitiv.

The Karachaganak field escaped restrictions under OPEC +, and oil and gas condensate production for the period from January to August increased by 3% compared to the same period last year.

Shareholders of the operator of the Karachaganak Petroleum Operating (KPO) field continue negotiations with the government of Kazakhstan on the division of revenues from oil sales, the press service of the Ministry of Energy said.

Oil production in Kazakhstan in January-August 2020 decreased by 3% in daily terms compared to the same period last year to 58.3 million tons, according to Refinitiv.

According to the Ministry of Energy, the consumption of motor gasoline in Kazakhstan in the first nine months of 2020 fell by 14% compared to the same period last year, diesel fuel – by 7%, jet fuel – by 33%, liquefied petroleum gas (LPG) – did not change (about 1, 5 million tons per year).

(Alla Afanasyeva, editor Alexander Ershov)

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