64
of Kazakhstan’s total crude oil output (www.oilprice.com 2017a, b). The estimation
is that there are approximately 25.5 billion barrels held in the Tengiz field. The total
amount of crude oil that can be recovered in the Tengiz and the Korolev field nearby
is approximately 6.4–10.7 billion barrels. In 2015, the net daily output that Chevron
obtained from the two fields was approximately 257,000 barrels of crude oil, 348
million cubic feet of natural gas, and 21,000 barrels of natural gas liquids (www.
oilprice.com 2017a, b).
Karachaganak
The Karachaganak Field, which is one of the world’s biggest gas condensate fields,
had been discovered by 1979. It is located in the northwest of the country and covers
an area of over 280 square kilometers. The estimation is that the initial reserves of
hydrocarbons increased to 9 billion barrels of condensate and 48 trillion cubic feet
of gas, whereas the total estimated reserves exceed 2.4 billion barrels of condensate
and 16 trillion cubic feet of gas (www.trend.az 2017). Kazakhstan obtains roughly
49% of its natural gas and 18% of its oil from this field, the main shareholders of
which are BG (29.25%), Chevron (18%), Eni (29.25%), KazMunaiGas (10%), and
Lukoil (13.5%) (www.trend.az 2017). Production here started in 1984, i.e., toward
the end of the Soviet period, yet by 1997, BG and Eni had signed the first productionsharing agreement (PSA). Since then, the Karachaganak has continued to expand,
and in 2004, BG and Eni, which were supported by Chevron and Lukoil, completed
the second phase of the Karachaganak project to export (www.2b1stconsulting.
com 2016).
The second phase of the expansion plan includes:
6. Oil to the Black Sea via the 650-kilometer Caspian Pipeline Consortium (CPC)
pipelines
7. To send gas and condensate 150 kilometers north, to the Russia Orenburg gas
central processing facilities. (www.2b1stconsulting.com 2016)
Karachaganak Petroleum Operating (KPO) has received investments of over $17
billion since the signing of the 40-year production-sharing agreement with the
Republic of Kazakhstan’s government in 1997 (www.theoilandgasyear.com 2016).
A final investment decision regarding the final phase of the expansion of the field is
expected in 2017, pending government approval, with a view for completion of the
entire project expansion in 2022 (www.theoilandgasyear.com 2016).
Kashagan
The Kashagan Oil Field, which is located below the Caspian Sea near the city of
Atyrau, is known to be the biggest field outside the Middle East and the fifth-biggest
field in the world. It was discovered in 2000 and it is estimated that its recoverable
3 International Context of the New Era and the Caspian Sea Region
of Kazakhstan’s total crude oil output (www.oilprice.com 2017a, b). The estimation
is that there are approximately 25.5 billion barrels held in the Tengiz field. The total
amount of crude oil that can be recovered in the Tengiz and the Korolev field nearby
is approximately 6.4–10.7 billion barrels. In 2015, the net daily output that Chevron
obtained from the two fields was approximately 257,000 barrels of crude oil, 348
million cubic feet of natural gas, and 21,000 barrels of natural gas liquids (www.
oilprice.com 2017a, b).
Karachaganak
The Karachaganak Field, which is one of the world’s biggest gas condensate fields,
had been discovered by 1979. It is located in the northwest of the country and covers
an area of over 280 square kilometers. The estimation is that the initial reserves of
hydrocarbons increased to 9 billion barrels of condensate and 48 trillion cubic feet
of gas, whereas the total estimated reserves exceed 2.4 billion barrels of condensate
and 16 trillion cubic feet of gas (www.trend.az 2017). Kazakhstan obtains roughly
49% of its natural gas and 18% of its oil from this field, the main shareholders of
which are BG (29.25%), Chevron (18%), Eni (29.25%), KazMunaiGas (10%), and
Lukoil (13.5%) (www.trend.az 2017). Production here started in 1984, i.e., toward
the end of the Soviet period, yet by 1997, BG and Eni had signed the first productionsharing agreement (PSA). Since then, the Karachaganak has continued to expand,
and in 2004, BG and Eni, which were supported by Chevron and Lukoil, completed
the second phase of the Karachaganak project to export (www.2b1stconsulting.
com 2016).
The second phase of the expansion plan includes:
6. Oil to the Black Sea via the 650-kilometer Caspian Pipeline Consortium (CPC)
pipelines
7. To send gas and condensate 150 kilometers north, to the Russia Orenburg gas
central processing facilities. (www.2b1stconsulting.com 2016)
Karachaganak Petroleum Operating (KPO) has received investments of over $17
billion since the signing of the 40-year production-sharing agreement with the
Republic of Kazakhstan’s government in 1997 (www.theoilandgasyear.com 2016).
A final investment decision regarding the final phase of the expansion of the field is
expected in 2017, pending government approval, with a view for completion of the
entire project expansion in 2022 (www.theoilandgasyear.com 2016).
Kashagan
The Kashagan Oil Field, which is located below the Caspian Sea near the city of
Atyrau, is known to be the biggest field outside the Middle East and the fifth-biggest
field in the world. It was discovered in 2000 and it is estimated that its recoverable
3 International Context of the New Era and the Caspian Sea Region