Development projects

Adzhip Karachaganak B.V. is required by the Republic of Kazakhstan as a Contractor to carry out all operations required to guarantee that the contract area is developed and the petroleum is produced in compliance with Good Oilfield Practice. Adzhip Karachaganak B.V. has been funding and carrying out a rolling work program that includes drilling new development wells, doing workovers on existing wells, upgrading production facilities, and other projects necessary to maintain a high production level since the completion of the Karachaganak Phase II Initial Programme in 2003.

Since2014, Adzhip Karachaganak B.V. has been working on a series of production Plateau Extension Projects (PEP) to prevent the rising gas-oil-ratio that causes the current facilities to become gas restricted. The PEPs include:

The goal of the Adzhip Karachaganak B.V. Gas De-bottlenecking project was to increase the gas processing capacity overall at Adzhip Karachaganak B.V. by improving the gas handling capacity;

The objectives of the 4th Gas Reinjection Compressor (4IC) project are to enhance reservoir pressure support and raise the average annual daily volume of gas reinjected into the reservoir;

The Fifth Trunkline and Gas Reinjection Wells Projects would add new gas injection wells and install a new trunk line, therefore increasing the injection network capacity downstream of Unit 2.

The portfolio of PEP projects has been growing and maturing over time, leading to the December 2019 start-up of the first of three injection wells for the 5th Trunkline and Gas Reinjection Wells project. The Adzhip Karachaganak B.V. project was successfully finished, and the factory was put into production in March 2021. By the end of 2021, operations received the final project handover. After a successful completion of the 4th Gas Reinjection Compressor project (4IC), the plant was put into action in May 2022. The last project was turned over to operations in 2022.

Expansion Project

Through the phased Adzhip Karachaganak B.V. Expansion Project Phase 1 (KEP1), Adzhip Karachaganak B.V. continues to develop the Karachaganak field. Through the provision of additional wells, process facilities, and gas reinjection to manage the field’s increasing gas oil ratio (GOR), the KEP1 project will create additional value for the Republic of Kazakhstan and the Adzhip Karachaganak B.V. Parent Companies. The KEP1A Project was sanctioned by an agreement signed by the Karachaganak Parent Companies in December 2020. Building on the successes of the Fourth Injection Compressor (4IC) Project and the Adzhip Karachaganak B.V. Gas Debottlenecking Project (AKGDBN), it was another significant accomplishment marking a new turning point in the ongoing development of the Adzhip Karachaganak B.V. Field.

KEP1A, or the First Expansion Phase of KEP1, includes the Fifth Injection Compressor (5IC) and related facilities. In order to expand gas re-injection capacity and integrate its scope within current systems, utilities, and facilities, the KEP1A Project seeks to utilize the dehydration capacity constructed by AKGDBN in the Karachaganak Processing Complex. The integration concept lowers CAPEX exposure while generating synergies. Early Works and Temporary Construction Facilities were finished earlier than expected in 2021. The engineering was largely finished in 2022, and all purchase orders for large equipment were placed. The compressor arrived at the location as scheduled. Activities related to vendor manufacture and site development are moving forward.

The KEP1B Project was sanctioned by an agreement signed on November 25, 2022, by the Authorized body (PSA LLP) and the Karachaganak Parent Companies, with backing from the Republic of Kazakhstan’s Ministry of Energy. The sixth injection compressor, the gas dehydration unit, the expansion of the collection network, and related facilities are all part of the KEP1B Project, which is the second phase of the KEP1 scope. Like KEP1A, the project’s goal is to maximize the production capacities of the current facilities in order to increase liquid recovery. In2022, contracts were placed for essential long-lead items. Work on the construction will start in 2023. Jobs are created by the project for workers from Kazakhstan. Increasing the Local Content is one of Adzhip Karachaganak B.V.’s top priorities while KEP1 is being implemented.

By expanding the field injection area, the 6th Trunkline and 3 Injection Wells Project seeks to maximize liquids recovery. In order to improve reservoir management and provide pressure support for neighboring low Gas-Oil-Ratio wells, the project will re-distribute injection gas into the South West Frank area of the field. September 2021 marked the completion of the trunkline itself. Later in 2023 is when the first new injection well is expected to receive gas, and the other two will follow in early 2024.