Kazakhstan to keep oil production at 90 million tons a year in the next 2-3 years

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NUR-SULTAN (TCA) — In January-November 2019, preliminary oil production in Kazakhstan amounted to 82.5 million tons. The country’s oil production plan for 2019 is 89 million tons, and until the end of the year, it is expected that the oil production plan will be slightly exceeded to reach 90.5 million tons, Vice Minister of Energy Asset Magauov said at a press conference on December 6, the press service of the Prime Minister of Kazakhstan reported.

“Our main production comes from three large projects. 60% of [oil] production is provided by Tengiz, Karachaganak and Kashagan [fields]. In 2019, three of these projects underwent overhauls. In general, production is stable,” said Magauov.

So, the production at the Kashagan field after completion of the overhaul has reached the level of more than 370 thousand barrels per day.

Due to the project of the future expansion of Tengiz field and expansion of capacities for gas re-injection of the Kashagan field, production is projected to increase to 100 million tons from 2023.

For other companies, a natural decline in oil production is projected. The main decline is forecasted in the fields of the Kyzylorda region in connection with the late stage of development of the main fields.

“In general, we will keep the production at the level of 90 million tons per year for the next 2-3 years,” Magauov said.

The vice minister said that important investment projects are in the active phase of construction: expansion of Karachaganak and further development of the eastern part of the Kashagan field.

It is also planned to implement a large project to maintain the current production target of 11.5 million tons at the Kashagan field. Total investments are estimated at around $3 billion.

To further expand the Kashagan field, partners are developing a concept for the full-scale development of the eastern part of the field. It is expected that in 2020 the first concept for the development of this part of the field will be presented at the Ministry of Energy.

Sergey Kwan

TCA