Olzhas Bektenov discussed future prospects for increasing oil and gas production with Shell PLC Executive Vice President Peter Costello
Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the Executive Vice President of Shell PLC Peter Costello, where the implementation of joint projects in the oil and gas sector was considered, El.kz cites primeminister.kz.
The priority of the Karachaganak expansion project is to maintain oil and condensate production at the level of at least 11 million tonnes per year. For this purpose, the parties will ensure timely commissioning of additional crude gas reinjection compressors. In addition, in order to ensure full operation of the project, the construction of a gas processing plant at Karachaganak with a capacity of 4 billion cubic metres per year at the expense of shareholders is under consideration.
Special attention was paid to the stable operation of the Kashagan field. Over the past year, oil production was 18.77 million tonnes and gas production 11.86 billion m3, gas reinjection was 5.83 billion m3. For the full-scale development of the field, the construction of a gas processing plant at Kashagan is at the stage of study.
Head of the Government of the Republic of Kazakhstan stressed the priority of increasing the Kazakh content in the implementation of projects, including through the localisation of missing production facilities in Kazakhstan.
"Today the share of local content in the works of project operators is at an acceptable level, the share of local content in the procurement of goods is still extremely low. This requires closer co-operation with local manufacturers interested in producing products," Olzhas Bektenov noted.
At the end of the meeting, the participants confirmed their intention to further develop long-term co-operation. Also, as a result of the discussion, the Local Content Development Programme will be revised in the near future to increase the purchase of goods, works and services in the domestic market.
In addition, the meeting participants noted the positive effect of Shell's social and educational projects in Kazakhstan.
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