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Looking to double its reserves of crude oil and gas condensate, Kazakhstan’s state-run KazMunaiGas, the country’s second-largest oil producer, will invest $9.9 billion in exploration in the next 10 years.

KazMunaiGas Chief Executive Lyazzat Kiinov said Monday the company’s current reserves stood at over 800 million tonnes of liquid hydrocarbons.

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“We want to nearly double (reserves) in 10 years to over 1.4 billion tonnes,” Kiinov said. “In general, we are thinking of investing 1.5 trillion tenge within 10 years, that is until 2022.”

Larger reserves would boost the market value of KazMunaiGas and increase its output, Kiinov said. The company has said it plans to raise annual oil output by 60 percent to 35.4 million tonnes by 2022.

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Kazakhstan, the second-largest post-Soviet oil producer after Russia and home to 3 percent of the world’s recoverable oil reserves, plans to boost oil output to 82 million tonnes this year from 79.2 million tonnes in 2012.

KazMunaiGas controls London-listed KazMunaiGas Exploration Production (KMG EP), whose output and financial results consolidate with the results of the parent company.

Kiinov did not say where the company would raise the funds to finance its exploration projects.

KMG EP plans to boost oil production by 1.6 percent to 12.4 million tonnes in 2013 to end its two-year output decline caused mainly by a workers’ strike at its wells in Mangistau.

Kiinov said the Ozen oil deposit, one of Kazakhstan’s oldest and a core asset of KMG EP, ramped up output earlier this month after years of steady decline.

KazMunaiGas owns more than 40 oil deposits in the Mangistau and Atyrau regions in western Kazakhstan. It takes part in multinational consortia developing the giant onshore Tengiz oil deposit and the large Karachaganak oil and gas condensate field.

The offshore Kashagan field, the world’s largest oil discovery in more than four decades, should produce its first oil later this year. KazMunaiGas holds a 16.81 percent stake in this project.

Kazakhstan has a pre-emptive right to buy out an 8.4 percent stake in Kashagan owned by U.S. oil major ConocoPhillips, which is shedding overseas assets to focus on lower-cost domestic shale oil and gas.

Stakes in Kashagan identical to KazMunaiGas’s 16.81 percent are Italy’s Eni, U.S. major ExxonMobil, Royal Dutch Shell and France’s Total. Japan’s Inpex owns 7.56 percent.

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