Development projects

As a Contractor to the Republic of Kazakhstan, KPO has an obligation to conduct all operations necessary to ensure the contract area is developed and the petroleum is produced in accordance with Good Oilfield Practice.

Following the completion of the Karachaganak Phase II Initial Programme in 2003, KPO has been funding and implementing a rolling work programme that includes drilling of new development wells, undertaking workovers on existing wells, upgrading production facilities and other projects required to maintain a high production level.

Plateau Extension Projects

Since 2014, to manage the increasing gas-oil-ratio and maintain the Field’s liquid production plateau, KPO has successfully delivered the following major projects:

• 2019: 5th Trunkline and Gas Reinjection Wells (5TL&W) Project to upgrade the injection network capacity downstream of Unit 2 through installation of a new trunk line, and drilling and completion of new gas injection wells.

• 2021: KPC Gas De-bottlenecking (KGDBN) Project aimed at increasing the overall KPC gas processing by expanding the gas handling capacity.

• 2022: 4th Gas Reinjection Compressor (4IC) Project aimed at increasing the daily average volume of gas re-injected into the reservoir and improving reservoir pressure support.

• 2024: 6th Trunkline and Gas Reinjection Wells (6TL&W) Project to upgrade the injection network capacity through installation of a new trunk line and drilling and completion of new gas injection wells.

Karachaganak Expansion Project

KPO is continuing development of the Field via the Karachaganak Expansion Project 1 (KEP1), which is set to significantly boost gas-reinjection volumes, maintaining reservoir pressure and extending the Field’s liquid production plateau. KEP1 is managed by one integrated team, but split into two projects delivered in parallel:

• KEP1A project was sanctioned in December 2020 and comprises the 5th Injection Compressor (5IC), slug catcher and inlet facilities, gathering and reinjection network expansions and associated utilities. The KEP1A Project pursues the opportunity to utilise the available dehydration capacity installed by KGDBN in the Karachaganak Processing Complex (KPC) and available capacity of 6TL&W to increase overall gas re-injection, integrated within existing systems, utilities and facilities.

The integration philosophy creates synergies and reduces CAPEX. First Gas Reinjection was achieved 1 month ahead of schedule in July 2024 and the facilities are in operation. Formal handover to Operations is expected in early 2025.

• KEP1B project was sanctioned in November 2022 and comprises the 6th Injection Compressor (6IC), gas dehydration unit, gathering network expansion, reinjection network expansion and associated utilities. KEP1B maximizes synergies with KEP1A to reduce CAPEX. KEP1B construction is well progressed: major civil works and foundations are complete, erection of structural steel is ongoing and piping installation is ongoing. The long lead items are also well progressed: the gas turbine compressor has been placed on its foundation, the gas dehydration column has been erected and the Drizo unit has been manufactured and is ready to be shipped. First Gas Reinjection is planned for Q3 2026 and the project is ahead of schedule.

KPO’s dedication to local content is a cornerstone of its operations. KPO is highly focused on supporting local communities and building the local economy. KEP1A project achieved 54 % local content overall, significantly exceeding expectations. This includes substantial local content for goods, underscoring KPO’s aspiration to develop local manufacturers in Kazakhstan’s oil and gas industry. The project has also created job opportunities for nearly seven thousand local people during the construction phase and will continue to provide further employment opportunities for the local community during the operation phase. KEP1B project continues to prioritize local content.