February 2008


Kazakhstan: Major Oil and Natural Gas Projects
 Return to Kazakhstan Country Analysis Brief (February 2008)
 

Name of Field/Project
Project Partners
 Estimated Reserves
Projected Investment Project Status
Abai Kazmunaigaz, Statoil 2.8 billion barrels of oil   Kazmunaigaz signed a MOU with Statiol. A PSA was expected to be signed in 2007
 Aktobe CNPC Aktobemunaigaz (88%), (within Block ADA partners include Korean National Oil Corp (KNOC), LG International Corp, Vertom) 1.17 billion barrels of oil $4.1 billion  Producing 116,660 bbl/d of oil ( 2005), 69.6 Bcf/y of natural gas (2005)
Arman Nelson Resources, Canada (50%); Shell (50%) 10.8 million barrels of oil -- Produced 3,600 bbl/d of oil, 852 thousand cubic feet (mcf) of gas in 2005
CPC: (Tengiz-Novorossiysk Pipeline) Caspian Pipeline Consortium (CPC): Russia 24%; Kazakhstan 19%; Chevron (U.S.) 15%; LukArco (Russia/U.S.) 12.5%; Rosneft-Shell (Russia-U.K./Netherlands) 7.5%; ExxonMobil (U.S.) 7.5%; Oman 7%; Agip/Eni (Italy) 2%; BG (U.K.) 2%; Kazakhstan Pipeline Ventures LLC 1.75%; Oryx 1.75% 990 mile oil pipeline from Tengiz oil field in Kazakhstan to Russian's Black Sea port of Novorossiisk; Phase I capacity: 565,000 bbl/d; Phase II capacity: 1.34 million bbl/d (2015) $2.6 billion for Phase 1; $4.2 billion total when completed First tanker loaded in Novorossiisk (10/01); exported 450,000 bbl/d in 2004, Target expansion to to 1.3 million bbl/d
Darkhan Kazmunaigaz (Kaztransgas), possibly Chinese consortium including CNPC, and Repsol 11 billion barrels of oil   Negotiations still underway with PSA to be signed in 2007. Located between the two offshore fields of Kurmangazy and Karazhambas
Egizkara LG Internatinal Corp (50%), Others 200 million barrels of oil   Exploration beginning in October 2006 with drilling starting in late 2007
Emba Kazakhoil-Emba (Kazmunaigaz subsidiary) 51%, MOL Rt, Vegyepszer (Hungary) combined 49% 500 million barrels of oil -- Producing 57,700 bbl/d of oil (2004); produced 3.1 Bcf of natural gas (2004)
Istatai Undisclosed 1.75 billion barrels of oil   Negotiations with undisclosed partner continuing, PSA expected in 2007
Karachaganak Karachaganak Integrated Organization (KIO): Agip (Italy) 32.5%; BG (U.K.) 32.5%; Chevron (U.S.) 20%; Lukoil (Russia) 15% 2.3-6 billion recoverable barrels of oil & gas condensate reserves; 16-46 Tcf of recoverable natural gas reserves $4 billion for Phase Two (completed in 2004) Producing 202,900 bbl/d, 1.1 mmcf/d natural gas (2005), 70% of oil exported through CPC

Karakuduk

Lukoil Total estimated proved plus probable reserves of approximately 63 million barrels $190 million through 200 with $170 million expected between 2006-2010 Producing 10,076 bbl/d of oil; produced 4.8 mmcf/d natural gas (2005)
Karazhanbas Nations Energy 400 million barrels of oil $250 million since 1997, $120 million in 2005 Producing 44,800 bbl/d (2005), (80-90 thousand bbl/d planned in next 2 years); produced 1.8 mmcf/d natural gas (2005)
Kashagan Agip Kazakhstan North Caspian Operating Company (Agip KCO) (formerly OKIOC): Eni, Total, ExxonMobil, and Shell (16.66%), ConocoPhillips (8.28%), Kazmunaigaz (16.81%), Inpex (8.28%) 9 billion to 13 billion recoverable (up to 38 billion probable) Origionally costed at $29 billion but estimates put final total approacing $50 billion Production starting no sooner than 2009 (initial production slated for 75,000 bbl/d, max 1.2 million bbl/d by 2013)
Kazgermunai Petrokazakhstan (25%), Kazmunaigaz 50% 100 million barrels of oil $300 million Produced 37,300 bbl/d of oil; 32 mmcf/d of natural gas (2005)
Khvalinskoye Kazakhstan and Lukoil

400 million barrels of oil. 12.3 trillion cubic feet of natural gas. Target start date 2014

$3.5 billion for petrochemicals plant. Field is located on the Kazakh-Russian border in the Caspian Sea and is Russia's jurisdiction. Agreement being prepared during 2007, signing expected during 2008..
Kumkol (North) Turgai Petroleum: Petrokazakhstan (50%), and Lukoil (Russia) 97-300 million barrels of oil -- Producing 60,000 bbl/d of oil, 18.3 mmcf/d of natural gas (2005), Legal dispute between PKZ and Lukoil has stopped production in the past
Kumkol South and South Kumkol PetroKazakhstan Kumkol Resource (PKKR), wholly owned by PetroKazakhstan 116 million barrels of oil   Producing 62,000 bbl/d of oil, 18.1 mmcf/d of natural gas (2005); Development of export pipeline infrastructure will allow for production growth
Kurmangazy AO Kazmunaiteniz Offshore Oil Company (a KazMunaiGaz subsidiary) 50%, Rosneft subsidiary OOO RN-Kazakhstan (25%). Russia's Zarubezhneft has an option on 25% in the project 2.2-8.8 billion barrels of oil $23 billion allocated over 55 years. Russia and Kazakhstan signed PSA in July 2005; Start date of 2009, Rosneft reports first assessment well drilled yeilded disappointing results.
Mangistau Mangistaumunaigaz  (Kazmunaigaz subsidiary) 1.4 billion barrels of oil -- Producing 113,200 bbl/d of oil, 33.3 mmcf/d of natural gas (2005)
North Buzachi Lukoil (50%), China National Petroleum Corp. (50%) 1 to 1.5 billion barrels of oil Over $800 million Producing 15,000 bbl/d of oil, 4.5 mmcf/d of natural gas (2005), Accelerated development plan approved in 2004
Nursultan ("N" Block) Kazmunaigas operating independently. ConocoPhilips, Shell had been mentioned as participants 4.65 billion barrels of oil   PSA signed in 2008. $40 million allocated.
Satpayev Kazmunaigaz, Oil and Natural Gas Corp. (ONGC) 1.85 billion barrels of oil   PSA expected to be signed in 2007
Tengiz TengizChevroil (TCO): Chevron (U.S.) 50%; ExxonMobil (U.S.) 25%; Kazmunaigaz 20%; LukArco (Russia) 5%, discovered in1979, agreement signed in 1993 9 billion barrels of oil $23 billion over 40 years Producing 271,000 bbl/d  of oil (2005); expected max production of 1 mill. bbl/d by 2012; produced 580 mmcf/d of natural gas in 2005
Tsentralnoye Kazmunaigas, Gazprom, Lukoil 3.8 billion barrels of oil, and 3.24 Tcm N/A A first deep-water exploration well is to be drilled at the end of 2007
Tyub-Karagan Lukoil 7 billion barrels of oil   2006 exploration well yielded disappointing results. Second delayed until 2008
Uzen Uzenmunaigaz  (Kazmunaigaz subsidiary) 100%

147 million barrels of oil

-- Producing 127,000 bbl/d of oil (2004), 29.8 Bcf of natural gas (Jan-Sep 2004), 30% improvement from 2003 from advanced technologies
Zhambyl Kazmunaigaz (73%), Korean National Oil Consortium (27%) KNOC: KNOC (35%), SK Corp (25%), LG Corp (20%), Daesung and Samsung (10% each) 1.26 billion barrels of oil -- KNOC and Kazmunaigaz to be joint operators. Full scale exploration and drilling to begin in January 2007.

Zhemchuzina

(aka Pearls Block)

Shell (55%), Kazmunaigaz (25%), Oman Oil Company (20%) 733 million barrels of oil   Plan to set up a joint operating company by the end of 2006 with Shell financing 100% of the appraisal program
Unless otherwise noted, all production figures from the Caspian Investor, March 2006

Sources: FSU Oil and Gas Monitor, Reuters, Interfax, WMRC/Global Insight, Company Websites, Caspian Investor (www.wtexec.com)

 
Other Useful Links:
IMF Kazakhstan Country Report 2004 (page 24)
Nelson Resources Field Page
Caspian Pipeline Consortium (CPC) Homepage
Kazmunaigaz Homepage (in English)

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Last Updated:
February 1, 2008

Contact:
Michael Cohen
(202) 586-7057
michael.cohen@eia.doe.gov