Karachaganak consortium to spend $2.5 billion by 2002
The consortium developing Karachaganak oil, gas, and condensate field in western Kazakhstan has reaffirmed its pledge to invest $2.5 billion in the project by 2002.
The consortium developing Karachaganak oil, gas, and condensate field in western Kazakhstan has reaffirmed its pledge to invest $2.5 billion in the project by 2002.
Speaking with parliamentary deputies at a conference in Astana, Karachaganak�s General Director John Morrow said a further $2 billion will likely be invested during 2002-06. The consortium has spent $800 million on investments since early 1995 and will spend another $975 million by the end of 2000. The partners have also spent $10 million/year on social projects.
Partners in the Karachaganak project are BG PLC (32.5%), Agip SPA (32.5%), Texaco Inc. (20%), and Lukoil (15%). The group signed a 40-year PSA with Kazakhstan in 1997.
Karachaganak proven reserves are 1.2 billion tonnes of oil and condensate and 1.35 billion cu m of gas. Production is forecast at 80,000 boe/d this year, vs. 66,000 boe/d last year.
The planned outlays will fund infrastructure improvements and allow production to reach nearly 300,000 b/d of liquids and 70 million cu m/day of gas in 2006. About $350 million of the investment will be spent to complete by early 2002 a 635-km pipeline spur connecting Karachaganak to the Caspian Pipeline Consortium�s Tengiz-Novorossiisk pipeline, currently under construction (OGJ, Apr. 17, 2000, p. 42). BG, Agip, and Lukoil are also shareholders in CPC.
Workers at the site number 5,500 people, with 5,000 of them being Kazakhstani citizens. Over the next two and a half years, the number of employees at the field will likely reach 10,000.
