Project "Development of Amangeldy gas deposits group"

In accordance with the Development Program of Gas Industry of the Republic of Kazakhstan for 2010-2014 in order to provide gas to consumers of the Southern regions of the Republic and to ensure energy security on the basis of the Contract for combined exploration and production of hydrocarbon raw materials from December 12, 2000 JSC "KazTransGas" continues the development of "Amangeldy Gas" Deposits group in Zhambyl region.

The validity period of the above Contract is until 2031.

In the context of the project, commercial development of "Amangeldy" field and other deposits of Amangeldy Group are being conducted, including a set of geological exploration and seismic works, calculation of reserves, development of pilot projects, construction of producing wells and deposit facilities. Approved recoverable reserves of natural gas in the fields of the Amangeldy group amount to 15 520 mln cm.

Since the beginning of 2008 Amangeldy deposit has entered the industrial development stage. Currently 33 wells are in operation.

On November 27, 2014 Zharkum field was put into pilot operation, production is carried out at 6 wells.

On November 12, 2015 the exploration period was prolonged for 3 (three) years till December 12, 2018.

In 2014-2015 seismic research of the CDP 2D were carried out in the volume of 257.1 line km on the structure of Sultankuduk, as a result of which parameters and predicted resources of the structure, location and depth of prospecting wells were refined. Using new data the project document "Addition No. 2 to the project of prospecting works on the Sultankuduk structure (Barkhan-Sultankuduk section)" was created, providing drilling in 2016-2018 of the first independent well of 4 250 m depth and second dependent prospecting wells with depths of 5,000 m and 2,970 m, respectively, in order to clarify the structure's prospects for identifying industrial hydrocarbon reserves.

Since the beginning of the industrial development at Amangeldy deposit there has been produced 4.03 billion m3 of natural gas and 303.15 thousand tons of gas condensate, including in 2016 311.31 million m3 of natural gas and 20.67 thousand tons of gas condensate produced.

Since the start of the pilot operation at Zharkum deposit there has been produced 37.97 million m3 of natural gas and 348.5 tons of gas condensate have been mined, including in 2016 15.91 million m3 of natural gas and 80.90 thousand tons of gas condensate.

As of 01.01.2017 "Amangeldy Gas" LLP has been produced 4,072 billion cubic meters of natural gas and 303.5 tons of gas condensate.

 

The project "Extraction of coalbed methane of Karaganda coal basin"(1st stage of geological exploration in the frame of R&D)

By the decision of the Board of JSC NC "KazMunayGas" the project "Extraction of coalbed methane of Karaganda coal basin" is included in the list of innovative projects of the Action Plan for the implementation of the "Strategy of innovation and technological development of JSC NC "KazMunayGas" for 2014-2018."

In September 2016 the Minister of Energy of the Republic of Kazakhstan approved an updated Action Plan (Roadmap) for the implementation of the assignment of the Head of State for the organization of exploration and production of coalbed methane (CBM). According to the specified Plan of JSC "KazTransGas" continues to conduct the 1st stage of the Project - geological exploration works within the framework of R&D in the contract area of ​​the subsoil user of JSC NC "SBC "Saryarka" in the Sherubaynurinsky coal-bearing area of ​​the Karaganda coal basin (according to the Agreement of 03.04.2015). (according to the Agreement of 03.04.2015).

The Company holds regular meetings with leading domestic scientists and subsoil users involved in the exploration and production of CBMs, foreign companies that possess modern world technologies and experience in exploration and production of coal methane.

The geological exploration work of CBM is a complex scientific and technical task carried out within the frame of R&D and directed to study the gas content of the contract territory and the development of the most optimal CBM extraction technologies. In the context of R&D possible options of the application of modern foreign technologies / methods of well construction are being tested, development and debt intensification of the CBM, taking into account international experience and attracting qualified service contractors, etc.

At the moment, the first stage of the Project has drilled exploratory and experimental wells, the first gas was received. According to the obtained core analysis data from the leading international laboratory (USA, China, Europe), the charcoal characteristics of the Cherubainurinsky site are similar to the largest US deposits (Black Warrior extraction, CBM up to 1.5 bn cm/year).

In 2017 in accordance with the Road Map the geological exploration work continues: the reserves are counted with a statement on the state balance of the Republic of Kazakhstan, the technical economic calculation is being carried out to assess the prospects for the extraction and commercialization of CBMs of the contract territory (TEC). According to the first recommendations of TEC the tender procedures are carried out to the construction of 3 wells with a complex of geophysical researches in them. After receiving the results of geological exploration (Stage 1 of the GEW Project in the frame of R&D) a final decision will be taken on the further implementation of the Project.

In order to create favorable conditions for attracting investments and forming the optimal pricing of commercial gas of CBM for the region’s population of the Republic of Kazakhstan, KTG together with the authorized state bodies and organizations in accordance with the Road Map is actively working to initiate state support for the exploration and production activities of the CBM:

- A Decree of the Government of the Republic of Kazakhstan was received for non-competitive contracts (for KazMunayGas/KazTransGas) for the subsoil use for exploration and production of CBM;

- in April 2016 the Head of State signed the Law "On Amendments and Additions to Certain Legislative Acts of the Republic of  Kazakhstan Concerning the Transition of the Republic of Kazakhstan to the Green Economy", which approved the state support for the exploration and production activities of the Municipal Units to obtain current tax and investment preferences . Work is underway to sign the subordinate legislative acts;

- proposals for early decontamination of coalbeds and issues of the effective regulation of CBM activities, proposals for revising the existing mechanism of obligations, interested subsoil users to finance R&D in the field of CBM exploration are sent to the Concept to the Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use". The work of article-by-item development of the Code is being carried out;

-  proposals for CBM inclusion as an alternative source of energy are directed to the Action Plan for the implementation of the Concept on the transition of the Republic of Kazakhstan to the "green economy" for 2013-2020.

 

The project "Geological studying and exploration of Imashevskoye deposit"

  • On January 18, 2005 an interstate contract was signed between the Republic of Kazakhstan and the Russian Federation about the Kazakh-Russian state border, as a result of which Imashevskoye field acquired the status of a transboundary deposit.
  • On September 7, 2010, an Agreement was signed between the Governments of the Republic of Kazakhstan and the Russian Federation about the joint activities in geological exploration and exploration of the Imashevskoye Transboundary Gas Condensate Field.
  • The authorized organizations under the Agreement are JSC NC "KazMunayGas" - 50% and JSC "Gazprom" - 50% with equal distribution of expenses during the geological study of Imashevskoye deposit.
  • On November 11, 2013 Minutes of Amendments to the Agreement was signed with the purpose of granting to "KazRosGaz" LLP, the Operator of Agreement, of the rights to use subsoil for geological study (RF) and exploration (RK) at Imashevskoye deposit, both in Kazakhstan and Russia. The  Minutes came into force on April 18, 2014.
  • On June 22, 2011 control of 50% of shares of KMG in "KazRosGaz" LLP was transferred to JSC "KazTransGas".

The project implementation term is 2015-2021.

In 2015 the packages of the geological information on the project in the Republic of Kazakhstan was acquired partially, the Uniform project on geological studying and exploration was developed.

November 21, 2016 the Uniform project for geological studying and exploration of Imashevskoye field passed the state ecological expertise in the Committee for Environmental Regulation, Control and State Inspection in the Oil and Gas Complex of the Ministry of Energy of the Republic of Kazakhstan.

 

"Kansu” Project

On October 21, 2015 by the decision of the Board of Directors of JSC NC "KazMunayGas" (Minutes No. 14/2015, item 17), the issue of alienation of 100% share of  JSC NC "KazMunayGaz" in favor of  JSC "KazTransGas" was approved.

On January 19, 2016 the re-registration of "KMG-Kansu Operating" LLP was made in the Justice Department of Aktau city due to the change of the Sole member from JSC NC "KazMunayGas" to JSC "KazTransGas".

On May 30, 2016 the Addition No. 2 to the Contract No. 3949-UVS of 01.10.2013 was signed for the hydrocarbons exploration on Kansu area located in the Mangistau region between the Ministry of Energy of the Republic of Kazakhstan, JSC NC "KazMunayGas" and "KMG-Kansu Operating" LLP on the transfer of subsoil use rights under the Contract.

On September 22, 2016 the "Addition No. 1 to the Project project of search works" (hereinafter - APSW) for oil and gas on Kansu area  reviewed and agreed at the meeting of the Central Commission for the Exploration and Mining of the Ministry of Energy of the Republic of Kazakhstan and approved in the Ministry of Energy of RK.

According to the approved APSW it modified the Working Program of the Contract for 2016-2019.

On October 1, 2016 the work on the construction of the geological model of Kansu field was completed. Three-dimensional geological models have been constructed and an initial geological inventory has been assessed on Cretaceous and Jurassic deposits.

On October 31, 2016 the work on the project "Audit of the current state of the environment at Kansu field" was completed. The total area of ​​work is equal to the area of ​​the contract territory of the site "Kansu" and is 4374.64 square of kms.

On December 2, 2016 the meeting of the Working Group of the Ministry of Energy of the Republic of Kazakhstan (Minutes No. 15 of the Working Group of the Ministry of Energy of the Republic of Kazakhstan) was held regarding amendments and additions to the Contract. Based on the results of this meeting the Competent Authority adopted a positive decision and on December 29, 2016 Addition No. 3 to the Contract was signed.

In December 2016, a tender was announced for the purchase of services for the development of a "Technical Project for the Construction of an Exploration Well R1 in the North Kansu Area".