Kashagan’s production potential could reach 75mln tons of oil per year – Kazakh Prime Minister Smailov
According to the head of the Kazakh government, since 1993 the colossal work has been done in the North Caspian Sea, enabling to uncover tens of promising structures.
«The main outcome of the exploration drilling was when the Kashagan commercial discovery was announced. Its uniqueness is that Kashagan holds huge oil and gas reserves, while presenting a challenge in its exploration,» said Smailov.
He noted that the oil industry of independent Kazakhstan at the sea shelf was just emerging and that foreign investors were beginning to know the Caspian Sea at the time. It is all in addition to the severe winter conditions, shallow water, and high ecological sensitivity.
«Lots of effort and fund were invested in innovative technologies to build specialized equipment suitable for the Kashagan project,» noted the Kazakh Prime minister.
Smailov stressed that today, as a result of this hard work around 90 million tons of oil and 55 billion cubic meters of gas have been produced, investments worth over $60bn have been attracted, over $17bn has been invested in the development of local content, around 10 thousand people have been provided with jobs, with over 40 thousand at the peak of construction.
He pointed out that the North Caspian Sea project’s operator – consortium North Caspian Operating Company (NCOC) is facing key tasks to further enhance production through full-scale development of the oilfield. According to expert estimates, Kashagan’s production potential could reach 1.6 barrels of oil day or around 75 million tons per year.
«Another important issue is the development of gas processing production at the field. As known, such a task was set before the government by the Head of State, and it should be fulfilled within the set time framework and in full. I’m certain that the NCOC personnel have huge potential to achieve the task set,» said Smailov.
In his words, the Kazah government is open for constructive dialogue as part of the implementation of joint plans.
«We highly appreciate the contribution of the Consortium to the development of the oil and gas sector and are committed to further strengthening of long-term cooperation,» said Smailov.
Addressing the meeting was also NCOC Managing Director Olivier Lazare.
«I take pride in our current achievements and hope that together with the Kazakh government we will achieve more. As the operator, NCOC seeks to being maximum benefit to the Kazakh economy and do its part in the country’s dynamic development,» he said.
As ordered by Kazakh Head of State Kassym-Jomart Tokayev, Kazah Prime Minister Alikhan Smailov awarded the veterans of the North Caspian Sea project the state awards for contributing to the social and economic development of the country.
The heads and senior officials at NCOC as well as the project’s veterans were awarded Parasat, Kurmet, 2nd-degree Dostyk, 3rd-degree Yenbek danky orders, as well as Yeren enbegi ushin medal.