Project Profile
Value: US$14,000 million
Location: 150 km east from the city of Oral (Uralsk)
Estimated to contain: 1.2 trillion cubic metres (42 trillion cubic feet) of gas and one billion tonnes of liquid condensate and crude oil
Current Production: 200,000 barrels per day
Karachaganak Field is a gas condensate field in Kazakhstan. It is located about 150 km east from the city of Oral (Uralsk) in the northwest of Kazakhstan. The field was once a massive Permian and Carboniferous reef complex covering an area 30 by 15 square kilometres (12 by 5.8 sq mi). At its largest point the reservoir contains a gas column 1,450 metres (4,760 ft) deep with a 200 metres (660 ft) deep oil rim below it. It is estimated to contain 1.2 trillion cubic metres (42 trillion cubic feet) of gas and one billion tonnes of liquid condensate and crude oil.
Discovered in 1979, it began production under Karachaganckgazprom, a subsidiary of the Russian Gas Company Gazprom. Kazakhgas took over operatorship after the independence of Kazakhstan in 1992. in 1992 AGIP (now Eni) and the then British Gas (now BG Group) were awarded the sole negotiating rights, forming a partnership company. In 1997 Texaco (now Chevron Corporation) and Lukoil signed a production sharing agreement with the original two companies and the Kazakhstan Government. This is a 40-year agreement to develop the field to allow the production to reach world markets. This is done under a partnership company known as Karachaganak Petroleum Operating (KPO) where BG Group and ENI are joint operators with a 32.5% stake each in the company, with Chevron and Lukoil owning 20% and 15% respectively.
In January-June 2005, 6.4 billion cubic metres (230×109 cu ft) of gas was recovered, and 5.7 million tons of liquid hydrocarbons was produced. Overall, it is planned to recover about 300 million tons of liquid hydrocarbons and 800 billion cubic metres (28×1012 cu ft) natural gas during the contract period. One current production issue facing the field is the increasing amount of gas of which a large amount is sour. As the export facilities of the project are not fully developed most of this gas is being recycled back into the reservoir until it can be exported profitably.
Operators:
Karachaganak Petroleum Operating BV (KPO) Partnership consisting of:
BG Kazakhstan: Joint operator with 32.5% interest
Eni S.p.A.: Joint operator with 32.5% interest
Chevron: 20% interest
Lukoil: 15% interest
Contractors:
Baker Hughes Incorporated: Provide all integrated services
Baker Energy (Now Wood Group): Data development of computerised maintenance management system
BJ Services Company: Range of process services
Petrofac Kazakhstan: FEED contract