Kazakhstan targets to increase its oil output Energy
Kazakhstan targets to increase its oil output
Energy-rich Kazakhstan is planning to increase its oil production to 79.5 million in 2017 with further growth up to 86.5 million tons in 2021. The target is reflected in the socio-economic development outlook of the country for 2017-2021.
The increase is mainly connected with the expansion of production at Tengiz field, which is considered to be one of the largest fields in the world, as well as resumption of production at Kashagan oil and gas field, scheduled for October 23.
Fitch International rating agency forecasted that the country may increase its production by 60 percent reaching the level of 2.7 mbd till 2030. The agency said that main drivers of growth are large projects, which are planned to be implemented in the upstream sector, as well as development of transport infrastructure in the country.
Kazakhstan’s three largest oil fields (Kashagan,Tengiz, and Karachaganak) are expected to account for some 75 percent of the total national output in 2025, while the figure standing at 50 percent in 2015.
The output of the country increased twofold from 2001 to 2015.
Moreover, the Organization of the Petroleum Exporting Countries (OPEC) has recently raised its forecast of oil supplies from non-member countries in 2017, increasing the volume of expected production in 2017 up to 200,000 (bpd) mostly due to start up of Kazakhstan’s Kashagan oilfield.
Commercial production in the amount of 75,000 barrels per day at Kashagan field is expected to be reached in November, 2016.
Kashagan, located in the north of the Caspian Sea, possesses geological reserves standing at 4.8 billion tons of oil. The total oil reserves amount to 38 billion barrels, while some 10 billion of them are recoverable reserves.
The production at the Kashagan field started in September 2013, but was suspended in October, after a gas leak in one of the main pipelines.
Recoverable reserves of Tengiz, which includes Tengiz field and the Korolevskoye field, are estimated between 750 million to 1.1 billion tons of oil. Karachaganak’s oil and condensate reserves stand at 1.2 billion tons. Almost 16 percent of oil produced in Kazakhstan is being extracted from this field. Kazakhstan’s economy depends heavily on the oil sector, which accounts for an estimated 20 percent of GDP, 50 percent of fiscal revenues, and 60 percent of exports.
The planned volume of output for 2016 is 74 million tons of oil, while oil production hit 79.46 million tons in 2015. Kazakhstan’s proven oil reserves as of early 2016 stood at 30 billion barrels, according to the BP Statistical Review of World Energy.