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.

From 2014, in order to avoid the increased gas-oil-ratio which causes the existing facilities to become gas constrained, KPO has been working on a programme of production Plateau Extension Projects (PEP) comprised of:

• KPC Gas De-bottlenecking (KGDBN) project aimed at increasing the overall KPC gas processing by expanding the gas handling capacity;
• 4^th Gas Reinjection Compressor (4IC) project aims to increase the annual daily average volume of gas re-injected into the reservoir and to improve reservoir pressure support;
• 5^th Trunkline and Gas Reinjection Wells Projects would 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.

PEP projects portfolio was maturing and developing over the years, resulting in start-up of the 5^th Trunkline and Gas reinjection wells project in December 2019 with first of the three injection wells.

In March 2021, KPC Gas Debottlenecking (KGDBN) project was successfully completed and the plant brought in production. Final project handover to Operations was achieved by the end of 2021.

The 4^th Gas Reinjection Compressor project (4IC) has been successfully completed and the plant was brought in production in May 2022. Final project handover to Operations was completed within 2022.

Karachaganak Expansion Project

KPO continues development of the Karachaganak field via the Karachaganak Expansion Project Phase 1 (KEP1), scheduled in a phased manner. The KEP1 project will create additional value for the Karachaganak Parent Companies and the Republic of Kazakhstan by maintaining the stabilized liquid plateau through the provision of additional wells, process facilities and gas reinjection to manage the increasing gas oil ratio (GOR) of the field.

In December 2020, the Karachaganak Parent Companies signed an agreement sanctioning the KEP1A Project. That was another major achievement representing a new milestone in the continued development of the Karachaganak Field, building further on the achievements of Karachaganak Gas Debottlenecking Project (KGDBN) and the Fourth Injection Compressor (4IC) Project.

KEP1A represents the first phase of the KEP1 scope and comprises of the 5^th Injection Compressor (5IC) and associated facilities. The KEP1A Project pursues the opportunity to utilise the available dehydration capacity installed by KGDBN in the Karachaganak Processing Complex to increase gas re-injection capacity and integrate its scope within existing systems, utilities and facilities. The integration philosophy creates synergies and reduces CAPEX exposure. In 2021, Early Works and Temporary Construction Facilities were completed ahead of plan. In 2022, engineering was substantially completed and Purchase Orders for major equipment were all placed. The compressor was delivered to site as per plan. Vendor manufacturing and site construction activities are progressing.

On the 25^th November 2022, the Karachaganak Parent Companies and the Authorized body (PSA LLP) supported by the Ministry of Energy of the Republic of Kazakhstan signed an agreement sanctioning the KEP1B Project. The KEP1B Project represents the second phase of the KEP1 scope and comprises of the 6^th Injection Compressor, gas dehydration unit, gathering network expansion and associated facilities. Similar to KEP1A, the project has the objective of increasing the liquid recovery by maximization of the production capacities of the existing facilities. Contracts for critical Long Lead Items were placed in 2022. Construction activities will commence in 2023. The project creates job opportunities for Kazakhstani workers. One of KPO’s key priorities during the execution of KEP1 is to maximize the Local Content by enhancing local contractors’ competitiveness. The project also provides job opportunities for Kazakhstan workers.

The 6^th Trunkline and 3 Injection Wells Project has the objective to maximise liquids recovery by increasing the field injection area. The project will re-distribute injection gas into South West Frank area of the field for pressure support of nearby low Gas-Oil-Ratio wells and better reservoir management.

The trunkline itself was completed in September 2021. First gas into the 1^st new injection well is planned for later in 2023, with the other two following in early 2024.