Export pipeline planned from Alibekmola oil field in Kazakhstan

By OGJ editors

HOUSTON, Apr. 24 -- Kazakhoil Aktobe LLP, a 50:50 joint venture of London-based Nelson Resources Ltd. and Kazakhoil National Oil & Gas Co., has signed an agreement with KazTransOil (KTO) for the construction of an export pipeline from Alibekmola oil field in western Kazakhstan to a connection with the Zhanazhol-Kenkiyak pipeline. KTO is an affiliate of Kazakhstan's new national oil and gas transportation company, Transportneftegas.

The 16 km, 500-mm (19.5-in.) diameter pipeline is scheduled for completion by third quarter 2002. The pipeline's initial capacity of 120,000 b/d will provide a means of crude oil export from Alibekmola and Kozhasai fields, both of which are in the Mugalzhar region of Aktiubinsk Oblast. Kazakhoil Aktobe holds the license for both fields, which have combined estimated reserves of 500 million bbl of crude oil and 690 bcf of natural gas.

Pipeline capacity could be increased by the addition of new pumping stations as pipeline usage grows. The early completion of the first phase will allow the companies to export oil in 2002 and early 2003, in contrast with a previous plan for a much smaller-diameter, temporary, export line. The construction of the larger-diameter line will remove a major restriction on crude oil production from the fields.

In Phase II of the project, Kazakhoil Aktobe plans to negotiate a tie-in to the proposed Kenkiyak-Atyrau pipeline. The Kenkiyak-Atyrau pipeline from Atyrau to export locations is scheduled for completion in December of this year, with oil throughput to begin early in 2003.

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