By OGJ editors
HOUSTON, Mar. 4 -- PetroKazakhstan Inc., Calgary, targeted a 12.5% increase in production to 170,000 b/d in Kazakhstan in 2005 assuming timely receipt of regulatory approvals and the absence of marketing constraints.
The company's total reserves climbed 11% during the year to 549.8 million boe, 71% of which is proved. Oil reserves rose 2.4% to 502.9 million bbl, replacing 123% of production.
Exploration drilling extended Kyzylkiya field to the north and into the new Kolzhan license and found high-quality channel sands below the Aryskum field gas cap (see map, OGJ, Feb. 28, 2005, p. 36). PetroKazakhstan will pursue the channel sands trend with further seismic and appraisal wells.
The 2005 plan calls for drilling 17 exploration and appraisal wells and acquiring at least 400 line-km of 2D seismic surveys and 300 sq km of 3D surveys. The company has an exploration prospect inventory of 94 independent structures that could hold as much as 1.1 billion bbl of unrisked reserves.
Development drilling will focus on Kyzylkiya, Aryskum, Maibulak, Akshabulak, and Kumkol North fields.
The export netback differential to Brent crude worsened to $13.83/bbl in the fourth quarter of 2004 but was expected to return to $12/bbl beyond the 2005 first quarter.
Another positive effect on differentials is expected from operation by mid-2006 of the Baku-Tbilisi-Ceyhan oil pipeline to the Mediterranean and the oil pipeline from Atasu to western China.
