Page 13 - FSUOGM Week 05 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Kazakhstan expects to start on

Kashagan gas plant in 2021

KAZAKHSTAN KAZAKHSTAN expects to break ground on decades at the time of its discovery in 2000. But
a new 1bn cubic metre per year gas processing the project soon ran into delays, significant cost
The $860mn project plant at the offshore Kashagan field in 2021, overruns and wrangling between investors and
will boost oil supply by authorities have said. the government.
up to 200,000 bpd. The $860mn project is expected to reach First oil was finally achieved in 2013, only for
completion in 2023 and will boost production at operations to shut down weeks later after it was
Kashagan by 8-10mn tonnes per year (160,000- found that corrosive gas had been leaking from
200,000 barrels per day), Energy Minister the field’s pipelines. It was finally reopened in late
Nurlan Nogayev said at a government meeting 2013.
on February 2. The field yielded some 15.4mn Even after its launch, problems have per-
tonnes (310,000 bpd) of crude last year. sisted, with the North Caspian Operating Co.
The processing plant will produce 800mn (NCOC) consortium having struggled to keep
cubic metres per year of dry gas, along with output stable. NCOC’s members are France’s
119,000 tonnes of LPG, 35,000 tonnes of conden- Total, Italy’s Eni, ExxonMobil, Royal Dutch Shell,
sate and 212,000 tonnes of sulphur. A potential Kazakhstan’s KazMunayGas, Japan’s Inpex and
expansion of its capacity is being considered, the China National Petroleum.
ministry said. Kashagan is on track to produce only 14.5mn
The project will create 2,800 jobs in its con- tonnes (290,000 bpd) this year, the energy min-
struction phase and 600 permanent ones during istry said in January, without disclosing the
its operation, according to the ministry. Its prod- reason for the projected decline. OPEC+ policy
ucts will be sold both domestically and overseas. is not an issue, as quotas have been eased this
Kashagan was hailed as the biggest oil find in year.™

NEWS IN BRIEF

RUSSIA received RUB1,045mn from Lukoil as the Novatek and Nuovo Pignone
first tranche. The total compensation is
Mozyr Oil Refinery gets supposed to be close to $60mn. to cooperate on emissions
BelTA reported earlier that on April 19,
$14mn as first tranche of 2019 the Belarusian state petrochemical reduction
concern Belneftekhim registered a massive
Russian compensation for decrease in the quality of the Russian oil Novatek and Nuovo Pignone, part of
mixture Urals coming via the Druzhba oil
the Baker Hughes Company, signed a
polluted oil pipeline system. Cooperation Agreement aimed at reducing
CO2 emissions, Novatek says in a press
The concentration of chloro-organic
The Russian company Lukoil has paid compounds in oil exceeded standard release.
the equivalent of about $14mn to Mozyr thresholds dozens of times over. A number According to the MoU, the parties intend
Oil Refinery as the first tranche of the of countries stopped taking and refining to cooperate in developing electrical and gas
compensation for the polluted oil the Russian oil as a result. Both of Belarus’ turbine solutions for natural gas and LNG
Belarusian company received in 2019, oil refineries – OAO Naftan and Mozyr production, as well as solutions for reducing
BelTA reported on January 27. Oil Refinery – were forced to reduce their CO2 emissions. As part of the agreement,
One of Belarus’ two modern oil workload and suffered financial losses. the Parties will commence implementing a
refineries, Mozyr Oil Refinery took delivery Damage was also caused to the pipeline project to convert gas turbines to hydrogen-
of contaminated Russian crude two years system. based fuel gas mix.
ago, which caused considerable damage to In February 2020 Belarus and Russia “Baker Hughes is one of the main
its equipment before the contamination was signed a protocol on the compensation equipment suppliers to our Yamal LNG
discovered. Russia admitted culpability and for polluted oil. Back then Belneftekhim and Arctic LNG-2 projects,” noted Leonid
promised to pay damages. expected a compensation of $15 per barrel Mikhelson, Novatek's Chairman of the
Now Russian companies have started to or over $61mn in total due to Mozyr Oil Management Board. “We are expanding
pay compensation for the Urals oil blend Refinery having to process 563,000 tonnes our cooperation with them to develop
with a high content of chlorinated organics of polluted oil. efficient and economically viable solutions
that was delivered in spring 2019. to mitigate the impact of climate change on
On January 21, 2021 Mozyr Oil Refinery our projects – one of the essential topics for

Week 05 03•February•2021 www. NEWSBASE .com P13