KazMunayGas to allocate $154 million for rehabilitation of its two oil fields
KazMunayGas (KMG), the national oil company in Kazakhstan, will allocate $154 million to redevelop the Uzen and Karamandybas oil fields in the Mangystau region, the company’s press services reported.
Once the rehabilitation project is completed, the fields’ output will gradually increase to 5.2-5.5 million tons a year. This year, the company plans to produce an additional 136,000 tons of oil, while its ultimate goal is to extract 19 million tons of oil from 2023 to 2036.
«In 2023, we invested $38.5 million in the project and $115.5 million this year. In 2024, we have to implement all scheduled measures associated with the project with the main focus on well-timed commissioning of new wells, introducing centrifugal and screw submersible pumps and using pump-compressor pipes with protection,» said KMG CEO Magzum Mirzagaliyev.
As the company noted, both the Uzen and Karamandybas fields would remain unprofitable for years if there is no rehabilitation project due to a gradual decrease in output (by 25% over the past 15 years), worn-out infrastructure, higher production costs and excessive number of workers.
«The rehabilitation project will let us increase the inter-overhaul period for wells, improve the enterprise’s economy and prevent oil output from a sharp decline,» the company said in a statement.
Under the project, KMG already commissioned 23 new oil wells in February 2024 after the hydraulic fracturing of the formation and putting centrifugal and screw pumps into the wells. KMG has already upgraded production equipment on more than 100 of its wells.
In addition, the oil company wants to drill an additional 31 new wells, put more than 200 submersible pumps down into wells, use protected pump-compressor pipes, conduct complex well overhauls and deploy new technology to boost oil production this year. Also, KMG will upgrade its two modular cluster pump stations and a workshop for examining and repairing oil production equipment.
