Page 15 - FSUOGM Week 24

FSUOGM POLICY FSUOGM

Kazakhstan misses OPEC+ mark

KAZAKHSTAN KAZAKHSTAN exceeded its May oil output – a separate figure for that has not been
quota under the OPEC+ oil output cut agree- published.
Kazakhstan’s ment by 100,900 barrels per day and will offset The Kazakh government signed a decree on
government has this by maintaining lower output in August and May 11 to cut oil output starting from May in
imposed cuts at the September, Energy Minister Nurlan Nogayev line with a deal agreed in April by OPEC and
country’s largest fields. said on June 9. non-OPEC oil producing nations. Kazakh-
The overproduction occurred in the first 12 stan’s energy ministry said on May 1 that the
days of May and the Central Asian nation has ex-Soviet state was reducing production at
since kept its output in line with the quota, Noga- certain giant, large and medium sized oil fields
yev noted. to meet the country’s commitments under the
Reports last week by Reuters indicated OPEC+ deal on global output cuts. None of the
that Kazakhstan had reduced its oil and gas fields concerned were specified, but the Tengiz
condensate output by 10% m/m to 1.689mn and Kashagan fields are the country’s biggest
bpd in May but failed to fully meet its obliga- producers.
tions under the OPEC+ pact. The ex-Soviet Cuts in daily output at the largest Kazakh
state was meant to reduce its oil output by oilfields reportedly started in May, including
22% from its first-quarter average. The deal the Karachaganak, Kashagan and Tengiz oil
does not cover gas condensate production projects.™

PROJECTS & COMPANIES

Gazprom kicks off drilling

at next Yamal project

RUSSIA RUSSIA’S Gazprom has kicked off production Russia’s main gas grid for supply to Europe.
drilling at a new field on the Yamal Peninsula – Further development phases at Kharas-
Kharasaveyskoye an area tipped to become the country’s biggest aveyskoye will focus on deeper reservoirs located
will be the second hub for gas extraction. within Neocomian and Jurassic rock. Gazprom
Gazprom-operated In a statement on June 12, the state-owned also wants to exploit these layers at Bovanenk-
field to come on gas exporter said it had started drilling the first ovskoye, raising that field’s production plateau to
stream on Yamal after production well at the Kharasaveyskoye field. 140 bcm per year.
Bovanenkovskoye. The well, which will reach a depth of 2,540 Gazprom’s so-called Yamal Megaproject calls
metres, is the first of 16 planned at the deposit for the development of some 32 fields on the
this year. peninsula comprising 26.5 tcm of gas. Produc-
Gazprom formally broke ground on Kharas- tion from these sites could reach as high as 360
aveyskoye in March last year. The field strad- bcm per year. Combined with output at Novatek
dles the shore of the Kara Sea and contains an fields in the area, this would result in Yamal
estimated 2 trillion cubic metres in C1+C2 gas displacing the Nadym-Pur-Taz region further
resources, making it the second-largest gas south as Russia’s main centre for gas production.
deposit on Yamal after Bovanenkovskoye. Gazprom’s third project on Yamal is likely to
Bovanenkovskoye is currently the only Gaz- be Kamennomysskoye-more, located in shallow
prom project in production on Yamal, and is on waters just off the peninsula’s coast. The field is
its way to reaching its third-phase capacity of slated to commence production in 2025, with
115bn cubic metres per year. Gazprom just having ordered a platform for its
Kharasaveyskoye is due on stream in 2023 development.
and will add a further 32 bcm per year of sup- Kharasaveyskoye was first discovered in the
ply. Its development is expected to involve the late 1970s, but for decades was considered too
drilling of over 230 wells, as well as the con- remote to exploit. Its launch should facilitate
struction of a gas treatment plant, a booster developing nearby offshore deposits such as Len-
compressor station and various power and ingradskoye and Rusanovskoye. But Gazprom
transport infrastructure. Its gas will be has cautioned that these projects are unlikely to
shipped via a 106-km pipeline to Bovanen- start up before 2030, given the cost and complex-
kovskoye, from where it can be pumped into ity of offshore Arctic drilling. ™

Week 24 17•June•2020 www. NEWSBASE .com P15