NCOC mulls development of Kashagan satellites
The international consortium in control of Kazakhstan’s massive Kashagan oilfield in the Caspian Sea is eyeing the development of two smaller deposits nearby.
North Caspian Operating Co. (NCOC) has rights to three fields besides Kashagan, the largest of which is the Kalamkas deposit. Caspi Meruerty Operating Co. (CMOC), a separate consortium but with common shareholders to NCOC, owns a field adjacent to Kalamkas, known as Khazar. Following the launch of Kashagan in late 2016, it was suggested that Kalamkas and Khazar could be developed under one project.
“We have identified a number of opportunities to reduce the cost of the project that could make it economically viable,” NCOC’s managing director, Bruno Jardin, said at a meeting with Kazakh authorities last week.
According to Kazakh Energy Minister Kanat Bozumbayev, an agreement between Astana and the two consortia on developing the fields could be reached in 2018.
“Talks on the Khazar and Kalamkas development projects are continuing this year, and we expect to achieve positive results,” he said at a government meeting on February 27.
Khazar was discovered in 2007, while the larger Kalamkas field was identified in 2013. According to NCOC, the fields contain 67 million tonnes (491 million barrels) of oil and 9 bcm of natural gas in recoverable reserves. The consortium thinks it can cut costs by developing the assets together, as well as taking advantage of existing infrastructure at Kashagan.
NCOC’s shareholders include Italy’s Eni, France’s Total, Royal Dutch Shell, Kazakh state firm KazMunaiGas (KMG), China’s CNPC and Japan’s Inpex. Shell and KMG are also involved in the CMOC consortium, alongside national petroleum group Oman Oil Co. (OOC).
NCOC also controls the Aktote and Kairan fields, which lie east of Kashagan closer to the coast of western Kazakhstan. However, the group has not said whether it intends to develop these assets.
Kashagan is currently producing 200,000 bpd, but NCOC plans to ramp up its output to 370,000 bpd sometime before the end of this year. Under a secondary development phase being discussed, the field’s production could rise to about 1 million bpd sometime in the late 2020s.
Growth at Kashagan helped Kazakhstan achieve a 10.5% rise in oil and condensate output last year to 86.2 million tonnes (1.73 million bpd). Under its latest development strategy, released last week, Astana is aiming to produce 2.155 million bpd of liquids by 2025.
