Currently, in order to expand the resource base, implementation of the following investment projects is conducted:
- Development of the Amangeldy group of gas fields (Amangeldy Gas LLP);
- Production of coal bed methane of the Karaganda coal basin (geological exploration).
“Development of the Amangeldy Group of Gas Fields” Project
In accordance with the Gas Industry Development Program of the Republic of Kazakhstan for 2010-2014, in order to provide gas to consumers in the southern regions of the country and ensure the energy security of KazTransGas JSC on the basis of the Contract for combined exploration and production of hydrocarbons dated December 12, 2000, it continues to develop the Amangeldy group of gas deposits in Zhambyl oblast.
Duration of the contract is until 2031.
As a part of the project, commercial operation of the Amangeldy field and the development of other fields of the Amangeldy group are being carried out, including a complex of geological prospecting and seismic works, reserves calculation, development of pilot development projects, construction projects of producing wells and field construction facilities. Approved recoverable reserves of natural gas at the Amangeldy group fields amount to 18,747 million m3.
Since the beginning of 2008, the Amangeldy field has entered the stage of industrial development. Currently, 35 wells are in operation.
On November 27, 2014, the Zharkum field was put into pilot development, production is carried out at 6 wells.
On November 12, 2015, the exploration period was extended by 3 (three) years until December 12, 2018.
In 2018, the exploration period was extended by 3 (three) years until December 12, 2021.
On December 28, 2017, the Ministry of Energy of the Republic of Kazakhstan signed Addendum No. 12 to the contract for commissioning of the Airakty field into pilot production.
In 2014-2015 seismic investigation of CDPM 2D was carried out on the Sultankuduk structure in the volume of 257.1 linear kilometers, as a result of which the structure parameters and forecast resources were refined. The project “Addendum No. 2 to the project of prospecting works on the Sultankuduk structure (Barkhannaya-Sultankuduk site)” was developed, in 2016-2017 a well to a depth of 4,250 m was drilled and in order to clarify the prospects of the structure for the identification of industrial reserves of hydrocarbons.
In 2018, the construction of an assessment well No. 12 at the Anabay field was completed. Also, during the reporting year, reprocessing and reinterpretation of seismic investigation of CDPM 2D and 3D have been performed at the Barkhannaya-Sultankuduk sites and the Anabai field.
Since the beginning of industrial development at the Amangeldy field, 4.662 billion m3 of natural gas and 341.88 thousand tons of gas condensate have been produced, including 308.05 million m3 of natural gas and 18.34 thousand tons of gas condensate in 2018.
Since the beginning of pilot production at the Zharkum field, 59 million m3 of natural gas and 454.8 tons of gas condensate have been produced, including 8.311 million m3 of natural gas and 39.36 tons of gas condensate in 2018.
In 2018, 44.109 million m3 of natural gas and 691.97 tons of gas condensate was produced at the Airakty field.
As of January 01, 2018, 4.765 billion m3 of natural gas and 343.03 thousand tons of gas condensate were produced by Amangeldy Gas LLP.
The project «Extraction of coal bed methane of the Karaganda coal basin» (geological exploration works)
By the decision of the Management Board of KazMunayGas NC JSC, the project “Extraction of coal bed methane of the Karaganda coal basin” was included in the list of innovative projects of the Action Plan for the implementation of “The Strategy for innovative technological development of KazMunayGas NC JSC for 2014-2018.”
In September 2016, an updated Action Plan (Road Map) for the implementation of the order of the President for arranging exploration and production of coal bed methane (CBM) was approved by the Minister of Energy of the Republic of Kazakhstan. According to the specified Plan, KazTransGas JSC continues to carry out the 1st stage of the Project - geological exploration works within the framework of R&D in the contract area of the subsoil user of Saryarka SEC JSC in the Sherubainur coal-bearing region of the Karaganda coal basin (in accordance with the Agreement dated April 03, 2015).
The company regularly holds meetings with leading domestic scientists and subsoil users dealing with exploration and production of CBM, foreign companies with modern world technologies and experience in exploration and production of coal methane.
Geological exploration of CBM is a complex scientific-technical task, carried out within the framework of R&D and aimed at studying the gas content of the contract area and development of the most optimal production technologies for CBM. Within the framework of R&D, possible options are being tested for the application of modern foreign technologies / methods for well construction, development and intensification of CBM production rates taking into account international experience, involving qualified service contracting organizations, etc.
For the period of 2015-2017, exploration and pilot wells were drilled, gas inflow was obtained. Geophysical studies of wells, field and laboratory studies of core in the specialized laboratories of Corelab (USA), NCCBM (China), Geokrak (Poland) were carried out. According to the results of the core analysis, the characteristics of the coal in the Sherubainurinskyi site are similar to the largest US fields (Black Warrior - production of 1.5 billion m3/year).
The research development of test and production wells has been completed, the wells have been put into temporary conservation.
Baker Hughes Kazakhstan LLP has developed a feasibility study “Evaluation of the prospects for extraction and commercialization of CBM of Sherubaynurinskyi coal-bearing region of the Karaganda basin” (FS), according to the results of the FS, it was recommended to continue research.
In 2018, work was completed on the compilation of the report “Operational calculation of CBM R\reserves at the Sherubainurinskyi plot”, reserves were put on the state balance of the State Reserves Committee of the RK by category C2 - 5.7 billion m3.
According to the recommendations of the FS and independent technical consultants, 3 wells were being constructed with a set of geophysical surveys.
In order to fully assess the prospects for CBM and to work out an effective technology for the extraction of industrial methane, taking into account the recommendations of experts from the KSTU and Baker Hughes project, KazTransGas JSC decided to continue research exploration on CBM.
In July 2018, taking into account the need to continue geological exploration, the decision of the KMG EC (Minutes of Meeting No. 13-18 dated 04.07.2018) approved additional funding for geological exploration at the expense of KTG's own funds in the amount of KZT 1,400 million.
Taking into account the geological conditions of the Karaganda coal basin, within the framework of R&D, high-tech structures with horizontal ends will be constructed in existing wells with multi-stage hydraulic fracturing in their horizontal sections.
For this work design documentation is currently being developed, the site has been prepared for field work.
According to the results of geological exploration - Phase 1 of the geological exploration project within the framework of R&D, a report on calculation of CBM reserves with the statement of coal methane reserves to the state balance of the Republic of Kazakhstan will be drawn up.
The decision on the further implementation of the Project will be made based on the results of geological exploration (Phase 1 of the geological exploration project within the framework of R&D).
In order to create favorable conditions for attracting investments and forming the optimal cost of CBM commercial gas for the population of the regions of the Republic of Kazakhstan, for the period of 2015-2017, KTG together with the authorized state bodies and organizations, in accordance with the Roadmap, conducted work on initiating the state support for CBM exploration and production:
- In 2016, the Law “On amendments and supplements to certain legislative acts of the RK on transition of the RK to a Green Economy” was signed, which approved measures of state support for CBM production in terms of obtaining current tax and investment preferences;
- in 2017, the Code of the Republic of Kazakhstan “On subsoil and subsoil use” was signed, where exploration and production of coal bed methane was regulated;
- proposals to the draft Decree of the Government of the Republic of Kazakhstan “On amendments and supplements to the Decree of the Government of the RK dated January 14, 2016 No. 13 “On certain issues of implementation of state support for investments”, providing for the right to include the implementation of investment projects for CBM production in the list of priority activities, were submitted to the Government of the RK.
For further development of CBM projects, negotiations are underway on joint cooperation with companies and investors.