First stage of Karachaganak expansion enters home straight - operator

ASTANA. July 5 (Interfax) - Fuel gas has been successfully introduced to a new fifth compressor for gas reinjection at Kazakhstan's Karachaganak field, marking the culmination of a key stage in the expansion project, project operator Karachaganak Petroleum Operating (KPO) said in a press release.

"KPO announces a major milestone in the Karachaganak Expansion Project (KEP-1A). Fuel gas has been successfully introduced, and the project is now in the final stage of commissioning. In the coming weeks, this will enable the initiation of reservoir injection through the operation of the fifth compressor," the company said in a press release.

The new compressor is set to significantly boost gas re-injection volumes, maintaining reservoir pressure and extending the field's liquid production period. The project includes the installation of new gas compression units and gas dehydration units, essential for efficient gas processing and re-injection.

The Karachaganak oil and gas condensate field is one of the largest in the world. Karachaganak Petroleum Operating B.V. is owned by Shell (SPB: RDS.A) with 29.25% through its 100% affiliate BG Karachaganak Ltd, Eni with 29.25%, Chevron with 18%, Lukoil with 13.5% and KazMunayGas with 10%. Karachaganak Petroleum Operating has been developing the Karachaganak field since 1997 on the basis of a 40-year production sharing agreement.

As at January 1, 2024, the remaining recoverable reserves of oil and condensate stood at 253.2 million tonnes and gas at 791.7 billion cubic meters, according to the Kazakh Energy Ministry.

The Karachaganak expansion project is aimed at maintaining oil and gas condensate production at 11 million tonnes per year.