Two firms advance Kazakhstan projects

Oct. 18, 1999
Two US companies reported progress on a planned gas field development and studies of several undeveloped fields in Kazakhstan.

Two US companies reported progress on a planned gas field development and studies of several undeveloped fields in Kazakhstan.

State oil company Kazakhoil let a $427,000 contract to Gustavson Associates, Boulder, Colo., to study the development of several oil and gas fields. World Bank provided funds for the contract.

Gustavson will study Alibekmola, Kozhasay, and Urikhtau fields near Aktobe in central Kazakhstan. The fields were discovered during the Soviet regime and never developed.

Kazakhstan is examining every natural resource for commercial potential, said John B. Gustavson, principal. "We consider it favorable that existing oil and gas pipelines run north to power plants and petrochemical complexes and that the Chinese-owned Zhana- zhol neighbor field is already producing. Modern development technology may result in a bankable feasibility study."

Kanatbek Zhumin and Isatay Birmanov of Kazakhoil new ventures division will monitor the project.

Usturt gas program

Meanwhile, American International Petroleum Corp., New York, said consulting engineers attributed 963 bcf of proved and probable gas reserves net of royalty to its Shagyrly-Shomyshty gas field on License 1551 in the North Usturt basin.

AIPC hired Ryder Scott Co. LP, Houston, to confirm a 1994 report by the Kazakh Ministry of Oil & Gas Industry that identified a productive east-west "fairway" along a 75,000-acre central crest with 717 bcf of proved gas in place and recommended development of the field. The 1994 report also identified the flanks of the field as areas with substantial gas in place but with lower flow test rates.

Ryder Scott calculated a total of 1.39 tcf of gas in place, of which 650 bcf of proved gas is in the fairway and 740 bcf of probable gas is on the north and south structural flanks. The 449 bcf of proved reserves value for the fairway was calculated based on gas expansion depletion yielding an approximate 70% recovery of the gas in place.

AIPC hopes to sign a gas sales contract and further develop the field. Consulting engineers Halliburton/ Paragon completed a feasibility study for a 60-mile, 30-in. gas line from the field to the Beineu compressor station on the 6.5 bcfd Srednyaya Azia-Center gas transmission line. AIPC calls Srednyaya the most cost-effective route for export or domestic sales.

Discovered in 1966, Shagyrly-Shomyshty field was delineated with more than 50 wells, all of which were logged and many of which were flow-tested. It also has more than 20 stratigraphic/structural control wells.

Fully developed, the field is to flow 200 MMcfd. AIPC's 30-year license gives it 100% working interest in the 197,680-acre field subject to 1-1.5% government royalty.

The gas reservoir is an Upper Eocene sandstone at about 1,100 ft. It has 26 ft average net thickness and average porosity of 26%. Gas is 95-97% methane.