Kazakhstan, Shell discuss further development of Kashagan and Karachaganak
ALMATY. Aug 26 (Interfax) - Kazakh Energy Minister Almasadam Satkaliyev discussed further development of the Kashagan and Karachaganak projects with Shell (SPB: RDS.A) representatives, the Energy Ministry said in a press release.
Satkaliyev had a meeting with Shell Executive Vice President for Conventional Oil & Gas Upstream Peter Costello and Shell in Kazakhstan Vice President and Chairman Ali Al Janabi.
The Kazakh minister said during the meeting that Shell was a strategic partner of Kazakhstan, and the republic hoped to further improve this partnership while carrying out the existing projects and exploring new opportunities.
"Timely implementation of the next stages of the Kashagan development program is of strategic importance for the republic. This becomes especially crucial in view of the increasing demand in the domestic market and, consequently, the need to increase the production of sale gas," Satkaliyev is quoted as saying.
The sides also discussed the progress of Phase 2A of the Kashagan project and the construction of the gas processing plant with capacity of up to 2.5 billion cubic meters of gas per year. They also underscored the importance of further development of the Karachaganak project, including the construction of a GPP that would produce 4.5 billion cubic meters of gas a year.
The Kazakh minister said that Kazakhstan and Shell could mull over joint exploration projects.
Kashagan is Kazakhstan's first offshore oil and gas field in the Caspian Sea. It is the largest international investment project in the country. The estimated recoverable reserves of Kashagan range between 9 and 13 billion barrels of oil. Commercial operation at Kashagan began on November 1, 2016. In 2022 the project produced 12.7 million tonnes of oil.
North Caspian Operating Company (NCOC), the operator of the Kashagan field, is owned by KMG Kashagan B.V. with 16.877%; Shell Kazakhstan Development B.V., Total EP Kazakhstan, Agip Caspian Sea B.V., and ExxonMobil Kazakhstan Inc. with 16.807% each; CNPC Kazakhstan B.V. with 8.333% and Inpex North Caspian Sea Ltd. with 7.563%.
The Karachaganak oil and gas condensate field is one of the largest in the world. Its reserves are estimated at 1.2 billion tonnes of oil and 1.35 trillion cubic meters of gas. It is operated by Karachaganak Petroleum Operating B.V., which is comprised of Shell that owns a 29.25% holding in KPO through its 100% affiliate company BG Karachaganak Ltd, Eni (29.25%), Chevron (18%), Lukoil (13.5%), and KazMunayGas (10%). Karachaganak Petroleum Operating has been developing the Karachaganak field since 1997 on the basis of a 40-year production sharing agreement.