Karachaganak Petroleum Operating  announces a major milestone in the Karachaganak Expansion Project (KEP-1A), marking a pivotal moment in Kazakhstan’s energy sector. Fuel gas has been successfully introduced, and the project is now in the final stage of commissioning. In the coming weeks, this will enable the initiation of reservoir injection through the operation of the fifth compressor.

This achievement underscores KPO’s commitment to maintaining the safe and efficient operation of the giant Karachaganak field. Despite external challenges such as logistical restrictions, and supply chain crisis, the project has progressed successfully, reflecting the resilience and dedication of the KPO team.

The new compressor is set to significantly boost gas re-injection volumes, maintaining reservoir pressure and extending the field’s liquid production period. The project includes the installation of new gas compression units and gas dehydration units, essential for efficient gas processing and re-injection.

Since the inception of the Karachaganak project, contributions to the national budget through taxes and mandatory payments have been substantial. The ongoing expansion is expected to further contribute to national revenue and foster regional development.

KPO’s dedication to local content has been a cornerstone of its operations. The project’s extraordinary success is underscored by its local content performance, which stands at around 62%, significantly exceeding initial commitments. This achievement highlights KPO’s commitment to supporting local communities and economies. Additionally, local content performance for Goods in KEP-1A has increased by about 18%, reflecting its aspirations to develop local manufacturers in Kazakhstani’s oil and gas industry. It is also worth noting that KEP-1A project has created job opportunities for nearly seven thousand local people during the construction phase and will continue to provide further employment opportunities for the local community during the operation phase.

This milestone aligns the RoK Government’s vision for the energy sector, reinforcing Karachaganak’s position as a critical asset in Kazakhstan’s energy landscape. The successful completion of the fifth injection compressor phase represents a major advancement in the continued development of the Karachaganak field, ensuring long-term production stability and economic growth.

Karachaganak Petroleum Operating B.V. (KPO) is a joint venture between Eni SpA (29.25%), Shell plc, (29.25%), Chevron (18%), Lukoil (13.5%) and KazMunayGas (10%).

Karachaganak Field Discovery

The Karachaganak field, discovered in 1979, is one of the world’s largest gas and condensate fields. Located in north-west Kazakhstan and covering an area of over 280 square kilometres, it holds estimated hydrocarbons initially in place (HIIP) of 13.6 billion barrels of liquids and 59.4 trillion cubic feet (tcf) of gas, with estimated gross reserves of over 2.4 billion barrels of condensate and 16 tcf of gas.

The Karachaganak Venture brings expertise and knowledge from five oil & gas companies — ENI SpA (29.25%), Shell plc (29.25%), Chevron (18%), Lukoil (13.5%) and KazMunaiGas (10%). Together they share their experience and expertise with the Republic in looking at both domestic and export options for maximising the value of these resources.

In 1997, Venture partners set out with the former State Oil & Gas Authority to develop the vast reserves of Karachaganak. They signed a Final Production Sharing Agreement (FPSA) which will see the partnership operate Karachaganak until 2038. Since signing this agreement they have invested over $31.3 billion in the operations and have applied industry leading hydrocarbon technology to one of the world’s most complex reservoirs.

In 2023, hydrocarbon production in Karachaganak reached 142.698 mln. barrels of oil equivalent. 12,650 billion cubic metres of gas, which is approximately 56.5% of the total gas produced, were re-injected to maintain reservoir pressure.

While delivering on its operation commitments, KPO as a responsible corporate citizen works towards generating maximum social and economic benefits from the Karachaganak field for the local communities and the Republic of Kazakhstan as a whole.