PetroKazakhstan hikes gas use, flirts with enhanced oil recovery

May 12, 2004
PetroKazakhstan Inc., Calgary, is turning part of its attention to maximizing gas utilization and evaluating enhanced oil recovery on its properties in west-central Kazakhstan's Turgai basin.

By OGJ editors

HOUSTON, May 12 -- PetroKazakhstan Inc., Calgary, is turning part of its attention to maximizing gas utilization and evaluating enhanced oil recovery on its properties in west-central Kazakhstan's Turgai basin.

As a 50% partner in the Kazgermunai Joint Venture, PetroKazakhstan participates in construction of a 30 MMcfd gas processing plant to serve Akshabulak field. The plant will extract 2,900 b/d of LPG and 600 b/d of condensate. Dry gas will be shipped to Kyzylorda through a pipeline to be built by state KazTransGas.

PetroKazakhstan has been in advanced discussions to purchase the 50% of Kazgermunai that it does not own.

The company started up a 55-Mw power plant in Kumkol field in late 2003. The plant, which provides power at lower cost and greater reliability, consumes part of the gas previously flared from Kumkol South, South Kumkol, and Kumkol North fields.

PetroKazakhstan is evaluating the feasibility of miscible gas injection for EOR and is designing a pilot project for one of the Kumkol fields. It is also studying a gas processing plant for Kumkol.

A gas injection system is to start up in the second quarter of 2004 in Aryskum field, where as many as 16 new production wells may be drilled this year. One well may be a horizontal penetration.

The company plans to resume production from and development of East Kumkol field in the third quarter, subject to government approvals and agreements with Turgai Petroleum. East Kumkol, discovered by PetroKazakhstan, extends into Turgai Petroleum's Kumkol North license area.

PetroKazakhstan produced 142,919 b/d in the quarter ended Mar. 31, 2004, up 1.5% from the first quarter of 2003.

Drilling, acreage progress
Field developments in the first quarter of 2004 included a 700 b/d oil well on the recently acquired Kolzhan license that confirmed a northern extension of Kyzylkiya field. As many as three delineation wells will be drilled this year.

PetroKazakhstan will further evaluate the prospectivity of deep horizons in the southern part of the Saralyn graben north of Kumkol field. The first exploration well there, drilled to 3,250 m on the Dongelek prospect, was dry with oil shows.

The company was also drilling a well projected to 4,450 m to explore horizons beneath the main Aryskum reservoir on the Aryskum license.

The government awarded PetroKazakhstan two exploration areas totaling 146 sq km north and south of Kyzylkiya field. The northern area is believed to contain an extension of Kyzylkiya field and potential in the Kumkol formation, and the southern area may contain Kyzylkiya satellites. A 3D seismic survey is planned in 2004.

The company received approval to become a 75% equity partner in License 951-D, which covers the Doshan and Zhamansu blocks totaling 4,290 sq km in the South Turgai basin. It spudded a well on the northern Doshan block south of Aryskum field and plans to drill two wells on the southern Zhamansu block this year.