Local content to be maximized in Kalamkas-Sea and Khazar project - Kazakh Energy Ministry

ALMATY. Feb 21 (Interfax) - The Kazakh Energy Ministry has set the task of timely completion of field development and ensuring the start of oil production in 2028-2029 at the Kalamkas-Sea and Khazar project with the maximum involvement of Kazakh goods, works and services, the ministry's press service reported.

Deputy Energy Minister and First Deputy Akim of the Mangistau Region Zhumabay Karagayev held a meeting on the implementation of the large marine project Kalamkas-Sea and Khazar with the participation of domestic manufacturers of goods and suppliers of services.

"In April of this year, we plan to hold an open day of large oil and gas projects, including the Kalamkas/Khazar project, to demonstrate to domestic businesses plans for import substitution of purchased goods (works, services). Such events will be held on an ongoing basis, which will expand the number of potential suppliers of goods, works and services among representatives of Kazakh business. The tasks are outlined - the timely completion of field development and ensuring the start of oil production in 2028-2029 with the maximum involvement of Kazakh goods, works and services," the information says.

Project operator Kalamkas-Khazar Operating LLP provided an overview of the current stage of the project and potential opportunities for Kazakh manufacturers.

KazMunayGas and Lukoil on February 9, 2023 signed a number of agreements relating to the development of the Kalamkas Sea, Khazar and Auezov blocks in the Kazakh sector of the Caspian Sea, including an agreement on the sale and purchase of a 50% holding in the charter capital of Kalamkas-Khazar Operating LLP and an agreement on terms and conditions for the financing of the project by its participants.

The Kalamkas Sea, Khazar and Auezov fields lie 60 km from the coast and at a depth of 7-9 meters. Production is expected to start in 2028 and will total 3-4 million tonnes per year. The development costs are estimated at about $5 billion.

Kalamkas Sea, discovered in 2002, is located 120 km southwest of the Kashagan field and very close to the Khazar field. The combined recoverable reserves of the Kalamkas-Sea and Khazar fields are estimated at 67 million tonnes of oil and 9 billion cubic meters of gas.