KazMunayGas forecasts start of production at Karaton Podsolevoy project jointly with Tatneft in 2028

MOSCOW. May 3 (Interfax) - The start of hydrocarbon production at the Karaton Podsolevoy subsoil site in the Atyrau region is planned for 2028, Kazakh National Company KazMunayGas said.

Forecast production volumes are 4.51 million tonnes of oil per year.

The exploration project to search for hydrocarbons at the site has been approved. Karaton Operating Ltd. (project operator) will begin drilling the first exploratory well with a depth of 5.5 km in 2024 at the expense of its strategic partner, Tatneft, which controls 50% of the project. The tests will end in 2025.

The Karaton Podsolevoy site is located in the Atyrau and Mangistau regions near the operating fields of Tengiz, Korolevskoye and the group of fields belonging to JSC Embamunaigas. The geological resources of the site are 353 million tonnes of oil (with a 50% probability of confirmation).

As reported, KazMunayGas and Tatneft signed a number of documents in February 2024 on the creation of a joint venture to conduct geological exploration at the Karaton Operating Ltd. site. Tatneft assumed all costs for the period until the approval of the field development project based on the principle of carry financing. Thus, if the well turns out to be "dry," this risk will be on the Russian company, but if the well produces a positive result, the costs will be compensated.