According to CEO Magzum Mirzagaliyev, KazMunayGas oil company (KMG) is going to increase oil production at the Tengiz oil field by 40%. He made the statement while responding to questions on the company’s IPO set to happen later this year.
The company is now carefully reviewing a set of projects aimed at increasing oil output in the near future.
«Among these projects is the project of Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP), which is capable of increasing oil output at Tengiz by 40%, and several smaller projects at Kashagan,» he said.
FGP-WPMP is a massive project aimed at increasing the production capacity of the Tengiz oil field. The project will increase the Tengiz field’s oil production capacity by an additional 12 million tons per year and guarantee that Tengiz production facilities are working at full capacity.
In September 2022, KMG bought a 50% share in KMG Kashagan from the National Welfare Fund Samruk-Kazyna.
«This acquisition is one of the largest deals KMG has done for the past several decades,» he said.
Over the period from January to September 2022, the Kashagan oil field produced 8.7 million tons of oil or 83% of the planned volume.
With 9-13 billion barrels of oil in estimated reserves, the Kashagan oil field is one of the world’s biggest oil deposits discovered over the past several decades. Commercial oil production at the oil field has been conducted since 2016 by the North Caspian Operating Company (NCOC). Among stakeholders of the company are KMG (16.88%), Eni, ExxonMobil, Shell, Total SA (16.81% each), CNPC (8.4%) and Inpex (7.56%).
The Tengiz oil field is the main asset of the Tengizchevroil company which belongs to Chevron (50%), ExxonMobil (25%), KMG (20%) and Lukarco (5%). The company was established in 1993 under an agreement signed by Nursultan Nazarbayev, ex-president of Kazakhstan and Keneth Derr, CEO of Chevron. The contract is going to end in 2033.