15 Feb 2024 16:16

Kazakh PM, Chevron official discuss localizing production in Kazakhstan

ALMATY. Feb 15 (Interfax) - Kazakh Prime Minister Olzhas Bektenov has called on U.S.-based Chevron, which is developing Kazakhstan's Kashagan and Karachaganak fields, to increase the share of purchased local products, the Kazakh government press service said in a statement on Thursday.

Bektenov discussed the launch of new production facilities, the increase in the share of local suppliers in purchasing goods and services, the development of the oil, gas and petrochemical sectors, and the implementation of social projects in Kazakhstan with Chevron's Eurasian division managing director Derek Magness, the statement said.

Bektenov stressed that the development of local production is Kazakhstan's priority, it said.

"Closer interaction with local producers interested in manufacturing goods is required. At the same time, if necessary goods or equipment are not produced in the country, we want to see detailed plans for localizing these production facilities in Kazakhstan in the next two or three years," the press service quoted Bektenov as saying.

The government will create the most comfortable conditions for investors to implement projects and provide the necessary support, he said.

"In turn, we also wait for active actions from our partners for the timely implementation of joint plans that provide for the utmost use of local potential, technology transfer and deep processing of raw materials," Bektenov said.

The government attaches much importance to the development of the Karachaganak field, he said, adding that maintaining oil and condensate production at a level of at least 11 million tonnes per year is a priority.

"The elaborated decision on the construction of a gas processing plant at Karachaganak with a capacity of 4 billion cubic meters per year is important for the further development of the field," Bektenov said.

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. The Karachaganak Petroleum Operating B.V. (KPO), consisting of Shell (SPB: RDS.A), which owns 29.25% stake through the BG Karachaganak Ltd. company, Eni with a 29.25% stake, Chevron with a 18% stake, Lukoil with a 13.5% stake and KazMunayGas with a 10% stake, operates the field under a 40-year production sharing agreement signed in 1997.

The Tengiz oil and gas field is one of the largest in Kazakhstan, with oil reserves amounting to 3.2 billion tonnes. The Tengizchevroil company, consisting of Chevron with a 50% stake, ExxonMobil Kazakhstan Ventures Inc. with a 25% stake, Kazakhstan via KazMunayGas with a 20% stake and Lukoil with a 5% stake, operates the field.