Development projects

As a Contractor to the Republic of Kazakhstan, KPO has an obligation to conduct all operations necessary to ensure the contract area is developed and the petroleum is produced in accordance with Good Oilfield Practice.

Following the completion of the Karachaganak Phase II Initial Programme in 2003, KPO has been funding and implementing a rolling work programme that includes drilling of new development wells, undertaking workovers on existing wells, upgrading production facilities and other projects required to maintain a high production level.

From 2014, in order to avoid the increased gas-oil-ratio which causes the existing facilities to become gas constrained, KPO has been working on a programme of production Plateau Extension Projects (PEP) comprised of:

KPC Gas De-bottlenecking (KGDBN) project aimed at increasing the overall KPC gas processing by expanding the gas handling capacity;

4^th Gas Reinjection Compressor (4IC) project aims to increase the annual daily average volume of gas re-injected into the reservoir and to improve reservoir pressure support;

5^th Trunkline and Gas Reinjection Wells Projects would upgrade the injection network capacity downstream of Unit 2 through installation of a new trunk line, and drilling and completion of new gas injection wells.

The above PEP projects have successfully been executed and completed.

Karachaganak Expansion Project

KPO continues development of the Karachaganak field via the Karachaganak Expansion Project Phase 1 (KEP1), scheduled in a phased manner. The KEP1 project will create additional value for the Karachaganak Parent Companies and the Republic of Kazakhstan by maintaining the stabilized liquid plateau through the provision of additional wells, process facilities and gas reinjection to manage the increasing gas oil ratio (GOR) of the field.

In December 2020, the Karachaganak Parent Companies signed an agreement sanctioning the KEP1A Project. That was another major achievement representing a new milestone in the continued development of the Karachaganak Field, building further on the achievements of Karachaganak Gas Debottlenecking Project (KGDBN) and the Fourth Injection Compressor (4IC) Project.

KEP1A represents the first phase of the KEP1 scope and comprises of the 5^th Injection Compressor (5IC) and associated facilities. The KEP1A Project pursues the opportunity to utilise the available dehydration capacity installed by KGDBN in the Karachaganak Processing Complex to increase gas re-injection capacity and integrate its scope within existing systems, utilities and facilities. The integration philosophy creates synergies and reduces CAPEX exposure. One of KPO’s key priorities during the execution of KEP1 is to maximize the Local Content by enhancing local contractors’ competitiveness.

The KEP1A project has made big strides this year and is nearing completion. Project completion and start of gas re-injection is expected in Q3 2024.

Work is also being carried out in parallel on the KEP1B project which was sanctioned on the 25^th November 2022 by the Authorized body (PSA LLP) with the support of the RoK Ministry of Energy. The KEP1B Project represents the second phase of the KEP1 scope and comprises of the 6^th Injection Compressor (6IC), gas dehydration unit, gathering network expansion and associated facilities. Similar to KEP1A, the project has the objective of increasing the liquid recovery by maximization of the production capacities of the existing facilities. The project is managed by the same team as a KEP1A. The project has made good progress during the year. Foundations are in place and erection of structural steel is ongoing. The (long lead) compression and the gas dehydration units have been manufactured and are ready to be shipped.

The 6^th Trunkline and 3 Injection Wells Project has the objective to maximise liquids recovery by increasing the field injection area. The project will re-distribute injection gas into South West Frank area of the field for pressure support of nearby low Gas-Oil-Ratio wells and better reservoir management. The project was successfully completed and came on-stream in March 2024.

Karachaganak Gas Plant Project

KPO has identified an opportunity to enhance the value from the Karachaganak field through the monetization of sales gas and Liquefied Petroleum Gas (LPG) by means of a new processing plant, which will also expand the liquid (condensate) production capacity within KPO. This opportunity is referred to as the Karachaganak Gas Plant (KGP) and the project viability is currently under consideration.