Oil and gas industry of Kazakhstan is the largest and most dynamic industry, which provides a stable increase in crude oil and natural gas. In the Kazakhstan sector of the Caspian Sea, there is continuing evaluation of public oil and gas fields with large reserves of hydrocarbons. Potential hydrocarbon of the Republic of Kazakhstan is estimated sufficiently significant in the total world reserves.
Kazakhstan holds big hydrocarbon reserves, including potentially the second largest oil reserves in the world (US Energy Information Administration). According to official data from the Ministry of Oil and Gas of Republic of Kazakhstan, confirmed hydrocarbon reserves, ...view middle of the document...
The Karachaganak Field (located about 150 km east of the city of Uralsk in the north-west of Kazakhstan and operated by Karachaganak Petroleum Operating) holds 50 billion cubic feet of gas, 5.2 billion barrels of liquid condensate and 1.4 billion barrels of oil available for commercial extraction.
There are 3000 billion cubic meters of proven gas reserves in Kazakhstan and estimated gas reserves are in an amount of 5,000 billion cubic meters. The majority of the gas reserves are placed in the west of Kazakhstan, close to the Caspian Sea region. The major gas fields are Amangeldy, in the south, and Zhanazhol in the west of Kazakhstan.
Important Events of History of Oil and Gas Industry in Kazakhstan
Oil reserves were first discovered in the present-day territory of Kazakhstan in 1899, however the oil and gas industry began to grow rapidly only after the rich Zhetybai Field was discovered in 1961.
Since the collapse of the Soviet Union, the focus of the policy of the Republic of Kazakhstan has been to encourage investors to make significant investments in the oil and gas industry. Much emphasis has been put on the creation of a stable legal environment for investors in the Caspian Sea region. In the years 1999 and 2002, Kazakhstan signed a package of agreements with the Russian Federation on defining their sea border in the northern part of the Caspian Sea. A similar agreement on defining the sea border was signed with the Republic of Azerbaijan in 2002 and an agreement with Turkmenistan is currently negotiated. The agreements clearly define property rights to fields located in the sea area and ensure the protection of interests of investors operating in the Caspian Sea region. Kazakhstan has begun talks with the Russia and Azerbaijan with a view to signing a comprehensive Caspian Sea convention with all the coast countries (Kazakhstan, Russia, Azerbaijan, Iran, Turkmenistan), which will also address other important issues, including environment and biodiversity protection in the Caspian Sea region.
According to the decree of the President #1095 from March 16, 2003, in 2003, the government of the Republic of Kazakhstan approved the National Sea Area Development Program for the Caspian Sea. The program consists of three stages:
1. Creation of conditions for comprehensive development of the oil and gas sector (2003-2005);
2. Rapid growth of the extraction level (2006-2010);
3. Stabilization of the extraction level (2011-2015).
The guiding idea was to make the Caspian Sea region of Kazakhstan an area which is attractive and friendly to investors and to maximize the mutual benefits of the state and investors from operating in the region.
Owing to high foreign investments made by nearly all major international oil companies such as Chevron, Exxon Mobil, Shell, British Gas, AGIP, etc., oil exploitation in Kazakhstan went up from 530,000 barrels a day in 1992 to more than a million barrels a day in...