Karachaganak field's operator begins preparatory engineering work for constructing gas processing plant in Kazakhstan

ASTANA. March 4 (Interfax) - Karachaganak Petroleum Operating B.V. (KPO), the operator of the Karachaganak oil and gas field in west Kazakhstan, has announced the start of engineering work for the constructing a gas processing plant, the company said on Tuesday.

"Karachaganak Petroleum Operating B.V. and its shareholders are pleased to announce the start of the next phase in the preparation of the Karachaganak gas processing plant project with a capacity of 4 billion cubic meters per year. A consortium led by Hyundai Engineering Co. is beginning preparatory engineering and technical work," KPO said on its website.

KPO and its shareholders remain dedicated to close cooperation with Kazakhstan to further explore all parameters essential to assess the project's viability, it said.

Currently, 9 bcm of Karachaganak gas undergo processing at Russia's Orenburg Gas Processing Plant before being returned to Kazakhstan for domestic market sales.

KPO is considering increasing gas production from 9 to 13 bcm annually without significantly affecting liquid hydrocarbon production. To accommodate this, a field-based gas processing plant is planned. It was previously reported that the plant was scheduled for launch in 2028-2030.

The Karachaganak oil and gas condensate field ranks among the world's largest, boasting reserves estimated at 1.2 billion tonnes of oil and 1.35 trillion cubic meters of gas. Operated by Karachaganak Petroleum Operating B.V., the consortium includes Shell (SPB: RDS.A) with a 29.25% stake through its affiliate BG Karachaganak Ltd, Eni (29.25%), Chevron (18%), Lukoil (13.5%), and KazMunayGas (10%). Since 1997, Karachaganak Petroleum Operating has been developing the field under a 40-year production sharing agreement.