Natural gas production starts in Kazakhstan at Rozhkovskoye field

A large gas condensate field "Rozhkovskoye" was put into commercial operation in the West Kazakhstan region. Alikhan Smailov, Prime Minister of the Republic of Kazakhstan, took part in the launch of natural gas and condensate production in the mode of teleconference.

The gas condensate field was discovered in 2008 as a result of a wide range of geological exploration works. It is planned to produce 14.2 billion cubic meters of raw gas and 7.1 million tons of condensate until 2040. The subsoil use right is held by a joint venture comprising KazMunayGas (50%), Hungarian company MOL Group (27.5%) and Chinese Sinopec (22.5%). To date, about $534 mln has already been invested.

It is expected that due to the development of the Rozhkovskoye field, the National Fund of Kazakhstan will be replenished by 501 billion tenge, and the local budget by 110 billion tenge. In addition, the shareholders plan to allocate at least 3.1 billion tenge for socio-economic development of the region, as well as annually under contractual obligations to allocate 1% of the investment amount for the training of Kazakhstani personnel.

Prime Minister emphasized that this project is of strategic importance. It is aimed at the fulfillment of the Head of State's instruction to attract investment in the exploration and development of new gas fields.

"Rozhkovskoye" will become a source of additional volumes of natural gas. The raw materials extracted from the field will be processed at the facilities of Zhaikmunai Company. The development is carried out in partnership with foreign partners, which has already allowed us to apply their experience in preparing and implementing the necessary design solutions," Alikhan Smailov said.

He added that several more gas projects are expected to be launched in the medium term, including "Urikhtau Central" (Aktobe region), "Western Prorva" (Atyrau region) and "Kalamkas" (Mangystau region).

"They will collectively give an increase in production of more than 2 billion cubic meters per year. Together with international companies 12 more promising exploration projects are being worked out, as well as projects for additional exploration of existing fields," Prime Minister emphasized.

According to him, the growing needs of the population and industry require not only an increase in gas resources, but also gas processing capacities.

"The Head of State has set a task to bring the volume of marketable gas production to 30 billion cubic meters by 2030. In this regard, new gas processing plants will be built at the fields "Kashagan" and "Karachaganak", as well as in the city of Zhanaozen," Alikhan Smailov noted.

Chairman of the Board of JSC NC KazMunayGas Magzum Mirzagaliyev recalled that last October at a meeting on the development of the energy sector, the Head of State instructed to increase the production of marketable gas.

"In May, we launched the Aksai Yuzhny field, in early December - the Eastern Urikhtau field. We are completing the current year with the commissioning of the Rozhkovskoye field. The project will have a positive impact on further socio-economic development of West Kazakhstan region. The share of local content in works and services amounted to at least 74%," he noted.

Vice President of MOL Group Zhombor Marton (from Budapest) and Chairman of the Board of Sinopec International Petroleum Exploration & Production Corporation Guo Yueliang (from Beijing) also spoke during the event in the teleconference mode.

Zsombor Marton noted that the preparation for the development of the Rozhkovskoye field was carried out qualitatively and on time.

"Our companies found the right ways to work together effectively. This allowed us to unlock the potential of this field. There is still a lot of work to be done. We are very pleased to enter this new stage together with our Kazakh and Chinese partners, knowing that we can rely on their professionalism," Vice President of MOL Group said.

In turn, Guo Yueliang thanked the Government of Kazakhstan for its support in the realization of such a significant project.

"Our company has the necessary knowledge and experience to develop such fields with the highest standards of industrial safety and environmental protection. This will be the main priority in carrying out the work," he said.

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