German-led group to develop Kazakh oil field

A combine led by Germany's RWE-DEA AG and Erdol-Erdgas Gommern GmbH (EEG), a joint venture of Gaz de France and Bayernwerk AG, has secured a $106.7 million loan for development of Akshabulak oil field in Southeast Kazakhstan. The partners envision a staged development costing a total 600 million deutschemarks ($320 million), with first oil in mid-1998 and production expected to last 20 years. Akshabulak reserves are estimated at 110 million bbl of oil.

Sept. 15, 1997

2 min read

The partners envision a staged development costing a total 600 million deutschemarks ($320 million), with first oil in mid-1998 and production expected to last 20 years. Akshabulak reserves are estimated at 110 million bbl of oil.

Early development will involve drilling six development wells by a Kazakh contractor, construction of oil processing facilities to handle 6,000 b/d of oil, and building a 60-km link to an existing pipeline.

In 1999, the combine will begin drilling as many as 30 production and injection wells and will expand processing capacity to handle 20,000 b/d of oil. In addition to production facilities, the venture will build local roads and primary energy supply facilities.

RWE-DEA and EEG said Akshabulak crude oil will be refined locally. In return for crude oil supplied to the plant, the venture will receive equivalent oil volumes for refining in Germany.

The combine, known as the Kazgermunai Joint Venture, secured the loan from a syndicate of banks, led by Kreditstalt für Wiederaufbau and Dresdner Bank AG.

Kazgermunai partners are: RWE-DEA 25%, EEG 17.5%, World Bank unit International Finance Corp. 7.5%, and the Hurricane Kumkol Munai JSC unit of Hurricane Hydrocarbons Ltd., Calgary, 50%.