Karachaganak Petroleum Operating B.V. (KPO) announces that the KEP-1B Project has safely achieved First Gas Reinjection. This key milestone was safely completed ahead of schedule, with over 7 million man-hours worked, including 5.5 million LTI-free man-hours recorded since the last LTI. This milestone supports sustained production from one of the country’s largest oil and gas fields.

Achievement of this milestone demonstrates KPO’s ongoing commitment to safe, responsible and efficient operation at the Karachaganak field. The new compressor is expected to significantly increase the KPO overall gas treatment capacity together with the gas re-injection volumes, maintaining reservoir pressure and extending the field’s liquid production plateau. 

The project progressed successfully despite external challenges, including geopolitical tensions, logistical restrictions, and supply chain disruptions, demonstrating KPO’s strong project execution capabilities and resilience in a complex operating environment.

KPO remains committed to maximizing local content and supporting the development of local communities and contributing to sustainable economic growth. To date, the KEP-1B Project has achieved 39% local content, progressing toward the overall project target of 45%. During the construction phase, the project created employment opportunities for more than 2,000 local personnel and is expected to continue supporting jobs during the operation phase.

This milestone supports the RoK Government’s objectives for sustainable energy sector development and reinforces Karachaganak’s position as a strategic asset in the country’s energy system. Since the inception of the Project, Karachaganak has made substantial contributions to the national budget through taxes and other mandatory payments. The successful delivery of the KEP-1B Project marks an important step in the continued development of the Karachaganak field, ensuring long-term production stability, economic growth and regional development.

 “Achieving the Gas Injection milestone ahead of schedule and with an excellent safety record reflects the dedication, professionalism and strong collaboration of all teams involved” noted Marco Marsili, KPO General Director. “This Project plays a key role in sustaining production and delivering long-term value to all stakeholders”. 

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.

KeyFacts Energy: Eni Kazakhstan country profile   l   Shell Kazakhstan country profile