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Press release Kashagan: the near and long-term future

December 13, 2016, Astana

On-site Service central communications held lectures Vice-Minister of Energy of the Republic of Kazakhstan Magzum Mirzagalieva on the launch of the Kashagan field.

September 28, 2016 began test production of the Kashagan field. In particular, 3 wells were opened on the island of "A" and began to connect the equipment to the island of "D".

November 1, 2016 production at Kashagan started sales of over 75 thousand barrels of oil per day. Currently, works are carried out in order to increase the level of production and its stabilization at the level of 180 thousand barrels per day.

As part of the pilot development of the Kashagan field planned production until the end of the term of the PSA (2041) is 308 million tons of oil. 211 billion cubic meters of gas will be produced, of which more than 62 billion will go to the domestic market to meet the needs of citizens and industry.

By the end of this year is expected to produce up to 1 million tons of oil and 680 million m3 of gas in 2017 - to 8.9 million tons of oil and 5.6 billion m3 of gas (the RK DOE forecasts). In subsequent years it is planned to increase production to 13-16 mln tons of oil and 9 billion m3 of gas per year.

Kashagan - is a major international project. The shareholders are the world's largest oil and gas companies of Italy, the Netherlands / UK, USA, France, China and Japan. At the same time, the largest share in the consortium belongs to the National Company "KazMunayGas". All together form the company NCOC shareholders, which is the sole operator of the project.

Production Sharing Agreement was signed on 18 November 1997, and 5 years later, in 2002, it was announced Kashagan Commercial Opening - were found and confirmed reserves of hydrocarbons. Kashagan is not one - it is surrounded by fields of satellites: Kalamkas-More, Aktoty, Kayran and Southwest Kashagan, which is also of considerable interest for the development and operation.

"Under the agreement, the oil production is divided into cost-Oil - Oil necessary to compensate for the costs of the investor and his motivation for the further development of the field, and hence the investment; and Profit Oil - the part of the oil, which forms the income of the investor and goes to the budget of the Republic ", - said Magzum Mirzagaliev.

According to him, in addition to the profit-oil Kazakhstan in the future will receive all kinds of taxes envisaged in the PSA, and bonuses. Additionally, the investor is obliged to allocate funds for social spending, training of Kazakhstani personnel, and, of course, investment in the development of related industries.

4 years carried out geological and geophysical studies of the Kazakhstan sector of the Caspian Sea Consortium "KazakhstanCaspianShelf", it took 9 years to the construction of the maritime sector and 5 years to the construction of the onshore facilities. Additionally 3 years was spent on the complete replacement of the offshore and onshore pipelines.

Currently, Kashagan is in Phase 1 - pilot development, characterized by the production of oil in the amount of 370 thousand barrels per day, or 13 million tons per year...

As part of Phase 1 were built Operational-technological complex and 4 drilling island in the sea and the plant "Bolashak" on land.

Since the beginning of the PSA contractor paid bonuses in the amount of 1.9 billion dollars Revenues to the state budget in 2017 will amount to $ 135 million

Next year will be the first full operating year, Kashagan, and the Republic will continue to receive their share of the extracted resources.

1 million 670 thousand tons (the share of Kazakhstan and JSC "EP") will be shipped via the CPC pipeline to the port of Novorossiysk on the Black Sea coast.

The KazTransGas pipeline network will be transferred 1.1 billion m3 of gas (the share of Kazakhstan and JSC "NC") for export and domestic consumption.

By rail will be transported 230 thousand tons of sulfur also on foreign markets and domestic production.

Recall, December 7, 2016 in Atyrau with participation of the Head of State took place the official presentation of one of the largest deposits in the world and the first offshore field in Kazakhstan - Kashagan.

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