The remaining recoverable reserves of oil and condensate at Karachaganak (one of the three largest oil and gas fields in Kazakhstan) amounted to 253 million tons as of January 1, 2024, Energy Minister Almasadam Satkaliyev said.
"As of January 1, 2024, the remaining recoverable reserves of oil and condensate amount to 253.2 million tons, gas – 791.7 billion cubic meters," he said at a government meeting.
According to him, as part of the future development of the field, it is planned to implement investment projects for the expansion of Karachaganak, which are planned until 2028, allowing to maintain production at the level of 11 million tons per year.
Karachaganak's operator, Karachaganak Petroleum Operating B.V. (KPO), previously reported production in 2023 of about 143 million barrels of oil equivalent in the form of stable and unstable liquid hydrocarbons, crude gas for export and refined gas for domestic use, which is 10.9% more than in 2022 (129 million barrels). The company announced that it has invested $31.3 billion in the development of the field.
Oil reserves in Karachaganak amount to 1.2 billion tons, and gas reserves amount to 1.35 trillion cubic meters. According to the production sharing agreement signed in 1997 and designed for 40 years, the development of Karachaganak is carried out by the international consortium KPO consisting of Shell – 29.25%, Eni – 29.25%, Chevron – 18%, Lukoil - 13.5% and KazMunaiGas – 10%.
At the end of March, Satkaliyev told reporters that the process of Kazakhstan's claim against the operators of Kashagan and Karachaganak was continuing and arbitrators had already been appointed.
"There is no news, there is an ongoing routine process, consultations. Consultants have been involved and arbitrators have been appointed. This is the procedure for considering issues of international arbitration, which involves a fairly long period of preparatory work," he said.
Noting the possibility of concluding a settlement agreement, the Minister said that in all commercial disputes, the authorized bodies proceed from the state interests.
"Here is the position of our PSA body, which is authorized to form an agenda for such commercial arbitrations. I would like to emphasize once again that this is commercial arbitration. And when forming the tactics of the process, we must proceed from the state interests," Satkaliev said.
The government of Kazakhstan has filed lawsuits against operators developing Kashagan and Karachaganak for a total of $16.5 billion ($13 billion for Kashagan and $3.5 billion for Karachaganak), which project partners should not deduct from expenses.
"As of January 1, 2024, the remaining recoverable reserves of oil and condensate amount to 253.2 million tons, gas – 791.7 billion cubic meters," he said at a government meeting.
According to him, as part of the future development of the field, it is planned to implement investment projects for the expansion of Karachaganak, which are planned until 2028, allowing to maintain production at the level of 11 million tons per year.
Karachaganak's operator, Karachaganak Petroleum Operating B.V. (KPO), previously reported production in 2023 of about 143 million barrels of oil equivalent in the form of stable and unstable liquid hydrocarbons, crude gas for export and refined gas for domestic use, which is 10.9% more than in 2022 (129 million barrels). The company announced that it has invested $31.3 billion in the development of the field.
Oil reserves in Karachaganak amount to 1.2 billion tons, and gas reserves amount to 1.35 trillion cubic meters. According to the production sharing agreement signed in 1997 and designed for 40 years, the development of Karachaganak is carried out by the international consortium KPO consisting of Shell – 29.25%, Eni – 29.25%, Chevron – 18%, Lukoil - 13.5% and KazMunaiGas – 10%.
At the end of March, Satkaliyev told reporters that the process of Kazakhstan's claim against the operators of Kashagan and Karachaganak was continuing and arbitrators had already been appointed.
"There is no news, there is an ongoing routine process, consultations. Consultants have been involved and arbitrators have been appointed. This is the procedure for considering issues of international arbitration, which involves a fairly long period of preparatory work," he said.
Noting the possibility of concluding a settlement agreement, the Minister said that in all commercial disputes, the authorized bodies proceed from the state interests.
"Here is the position of our PSA body, which is authorized to form an agenda for such commercial arbitrations. I would like to emphasize once again that this is commercial arbitration. And when forming the tactics of the process, we must proceed from the state interests," Satkaliev said.
The government of Kazakhstan has filed lawsuits against operators developing Kashagan and Karachaganak for a total of $16.5 billion ($13 billion for Kashagan and $3.5 billion for Karachaganak), which project partners should not deduct from expenses.