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Archive
#5 (149), November 2024
Editor❜s Note
Industry Events
Autumn in Kazakhstan is traditionally rich with industry events. In September, experts gathered at a conference in Astana organized by Globuc to discuss the challenges and opportunities in oil and gas processing and petrochemicals within Central Asia and the Caspian region. We were particularly intrigued by the insights shared by John Roberts, an expert on energy security and a member of the United Nations Economic Commission for Europe.
Projects
Upstream Development of Small Gas Fields in Kazakhstan. Some progress being made under a new policy approach
Emerging shortage of commercial gas as demand rises while production stagnates.
Since 2021, with adoption of the Comprehensive Plan for Kazakhstan’s Gas Industry Development for 2022–26, gas industry transformation and related reforms have become a key focus for policymakers and especially for the two national companies, JSC KazMunayGas (KMG) and JSC QazaqGaz. The comprehensive plan envisions both new upstream development as well as expansion of gas processing to expand domestic commercial gas supply.
Tengiz Effect – 2033 and beyond
The Tengizchevroil (TCO) project stands as a cornerstone of Kazakhstan's oil industry, representing a significant portion of the country's crude oil production and reserves. As a pioneer of stabilized contracts in Kazakhstan, TCO's concession is nearing its end in 2033, necessitating a strategic approach to establish a new balance of interests that benefits both the Republic of Kazakhstan and the shareholders. The project's technical complexity and capital intensity underscore its importance to the national economy, making it crucial to negotiate terms that are advantageous for Kazakhstan while remaining acceptable to investors.
Kazakhstan Yet Again Pushes its Main Upstream. Foreign Investors for Changes in Terms Is this effectively killing the proverbial golden goose?
Host country disputes with foreign investors are hardly new for the international oil and gas industry; these seem to simply be a regular feature of the business. Kazakhstan once again is applying pressure on its most important upstream foreign investors, apparently attempting to extract an even larger share of revenue and other concessions from the projects they operate. But the challenge for the international consortia running the so-called “Big Three” projects in Kazakhstan — Kashagan, Karachaganak and Tengiz — seems to be somewhat different this time simply because of the astronomical claims being put forward.
Geology
The Post Salt Сomplex of the Precaspian Basin is the Future of Kazakhstan❜s Oil
A new stage in the study of the salt-dome part of the Precaspian Basin is associated with the widespread use of 3D seismic exploration. The prospectivity of deep horizons of the postsalt complex are determined by the capacity of the traps; being on the paths of hydrocarbon migration from the sub-salt source to the upper horizons, the traps inevitably had to be filled with migrating hydrocarbons.
Expertise
Gas Market Outlook in Central Asia and Europe
We are all witnessing a paradox in the global economy: On one hand, due to climate change, we urgently need to abandon fossil fuels. On the other hand, as a result of the war in Ukraine, we are more dependent on fossil fuels than ever. Let’s begin with the so-called climate crisis, which has been ongoing for years and decades. The world must either prevent it or learn to cope with the growing global warming, which, according to the latest Intergovernmental Panel on Climate Change report, will exceed 1.5°C above pre-industrial levels within the next decade.
Forums
KIOGE 2024: A Site for Innovative Ideas and Strategic Agreements
From September 25 to 27, 2024, the 29th International Oil and Gas Exhibition and Conference KIOGE 2024 was successfully held in Almaty, becoming a significant event for the oil and gas industry. The exhibition was located on the territory of the Kazakhstan Center for Business Cooperation Atakent and brought together 340 companies from 20 countries, including Austria, Azerbaijan, Armenia, Belarus, Great Britain, Germany, Georgia, India, Italy, Latvia, Kazakhstan, Korea, China, the Netherlands, Norway, Russia, Romania, Turkey, France, and the Czech Republic. Among the participants were the national stands of Germany, China, and Russia, and 40% of the exhibitors demonstrated their products for the first time.
Oil Chronicles
Oil Chronicles. July 2024
July
July 1, QazaqGaz and Chevron Corporation, through its subsidiary Chevron Munaigas Inc., signed a cooperation agreement on geological exploration in the Zhalibek area of the Aktobe region, near the Zhanazhol and Urikhtau fields. Negotiations and technical preparations for this project have been ongoing for the past year. In the initial phase, Chevron will reprocess existing seismic data and develop technical interpretations. Both parties view the signed agreement as a potential start of broader cooperation.
Oil Chronicles. August 2024
August
August 1, Ali Al-Janabi was appointed Senior Vice President and Shell Kazakhstan Country Chair. Before this appointment, Ali was the Chairman of Shell in Iraq, Tunisia, and the UAE. He represented Shell Group to the governments of Iraq and the UAE. He was accountable for the performance of Shell’s Upstream Joint Ventures in Iraq, Italy, Kuwait, Tunisia, and the UAE.