Page 14 - FSUOGM Week 41 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

TotalEnergies gets Dunga

contract extended

KAZAKHSTAN FRENCH energy major TotalEnergies has when it took an FID. The project's cost was also
secured a contract extension to develop the higher, at $300mn.
TotalEnergies' contract Dunga oilfield in western Kazakhstan, with Dunga was discovered in 1969, but produc-
will now run until Kazakh authorities estimating that this will tion was not initiated until 2020. Denmark's
2039. unlock an extra KZT70bn ($165mn) in the pro- Maersk acquired a 60% interest in the field in
ject's development over the next five years. mid-2002, joining partners Oman Oil (20%) and
TotalEnergies' contract will now run until Portuguese investment fund Partex (20%).
2039, rather than terminating in 2024 as previ- Maersk reported first oil from a $1bn second-
ously expected. In 2019 the operator, then known ary development phase at Dunga in late 2012,
as Total, took a final investment decision (FID) and output quickly climbed to 7,000 bpd. The
on Dunga's third-phase development, although firm had planned to drill as many as 200 wells
the project then became bogged down in disa- by 2016, targeting a production plateau rate
greements between TotalEnergies and Kazakh of 30,000 bpd. Most of these wells were sunk,
authorities over its technical design and com- although some drilling was cancelled in response
mercial terms. Further delays were attributed to to low oil prices.
the coronavirus (COVID-19) pandemic and the TotalEnergies bought Maersk in August 2017.
resulting oil price crash. Dunga exports its oil via the Uzen-Atyrau-Sa-
According to Kazakh Energy Minister Mag- mara oil trunk line, which runs within 50 km of
zum Mirzagaliyev said, the project is expected its border. While TotalEnergies has said that the
to lift output by 26% from the current level to field represents low-cost production, operating
around 17,300 barrels per day. This is less than expenses are likely climb as its reservoirs grow
the 20,000 bpd that TotalEnergies had envisaged more mature. ™

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