Project to increase hydrocarbon extraction at the Karachaganak begins
The project will ensure additional revenues to Kazakhstan's budget in the amount of more than 3.2 billion dollars until 2037.
A start was given to a large investment project at the Karachaganak field (the project to withdraw production restrictions on the gas of the Karachaganak processing complex - SPOG), a press service of the Kazakh Energy Ministery reports.
An agreement of the project's implementation was signed between the competent authority of Kazakhstan - PSA LLP under the support of the Kazakh Energy Ministry and shareholders of the project such as Eni, Shell, Chevron, Lukoil and KazMunayGas (hereinafter - the consortium).
"Owing to the SPOG project, the maximum extraction level at the Kypachaganak field will be maintained. The project, being one of the largest investment projects with a budget of 1.1 billion US dollars, will ensure additional revenues to Kazakhstan's budget in the amount of more than 3.2 billion US dollars by 2037. Within the project, the minimum share of Kazakhstan's content in the procurement of commodities, works and services will account to 40% and 75% in the recruitment of personnel," reads the press release.
The project will enable to process additional raw gas up to 4 billion cubic meters a year. These volumes will be used to re-inject them into the strata so to increase the level of hydrocarbon extraction. It will also be the resource for implementing further investment projects in the field.