Karabatan is not enough, Eskene is required

A full scale phase of development (FPD) - is the third one after exploration and EID.

By 2015, when in Kashagan the EID will be completing, operational company is intended to get up to 21 million tons/year of commercial oil, 44,4 million of cubic meters of gas a day, out of which 29,6 million will be pumped in immediately backwards into the stratus, and 14,8 million tons a day on the networks of underwater pipelines will be delivered to "Bolashak" at Karabatan.

Principles of FDP

Document titled Preliminary Assessment of Environment Impact (PAEI) is attached to the worked out on this issue Declaration on intentions. It is a huge pile of documents. So let's discuss the main parts of it.

"Agip KCO expects from FPD, that maximum sustainable level of oil extraction will make up for 56-70 million tons of oil a year (1.2-1.5 million barrels/day)". And it is in case of the simultaneous effective mutual usage of other assets of the Northern Caspian project - operations of oilfields Kairan, Aktoty and Kalamkas-sea. Company on sea block of the FPD, suggests that the scheme will not change principally during the FPD: also as by EID, on not big artificial islands autonomous systems for oil collection will be located, from which received fluids (oil, water, hydrogen sulphide etc.) will be pumped on small pipelines for bigger sea exploitation-technological complexes (ETC).

At ETC fluids are separated, the received oil is stabilized and then pumped over to a shore for the further on separation."

There is one more interesting line: "Alternative technological concepts may reduce the volumes of gas and sulfur." But there are no details for this line.

As for sulfur concerned Agip KCO plans that, under the level of extraction of 56-70 million tons oil/year "under the worst scenario" the level of sulfur production will make up 5700 tons a day, that is over a year at Karabatan about 2 million tons sulfur could be produced.

On terms with Kazakhstan Agip KCO has a right to store up to 4 million tons, and later on sulfur will be stored "under the adequate system at the relevant area beyond the ground of "Bolashak."

However, a location for sulfur storage at the territory of the country is not identified. The company pledges vaguely, that "variants for increase of domestic demand for sulfur are examined, namely, in the construction and agriculture fields."

The Italian company Eni has its own up-to-date know-how or patent on sulfur, which the company intends to use actively.

Difficult choice

Locations of the full scale phase of development - is the most basic problematic issue, which KCO Agip as if resolves. The Company defined 17 plots, which are consolidated into 11 zones of the 4 basic districts:

1. Central Eskene (in the direction of Makatskiy rayon of Atyrau oblast, just a bit easterner of the present "Bolashak." Distance up to Atyrau - 38 km);

2. Western Karsak (nearby the oilfield "Karsak" National company "KazMunayGas," 130 km, a bit easterner Atyrau);

3. Northern Tengiz;

4. Western Buzachi (peninsula in Mangistau oblast, in the district of the support basis of sea operations at the sea port Bautino).

First variant - "Central Eskene"

Advantages of the ground: opportunity of usage of the constructed infrastructure within the EID, electricity energy, railroad and car connections, villages for constructors, opportunity of working non-shifts methods from Atyrau, what significantly reduce expenses on labour force.

Shortcomings: all underwater pipelines "South-North" comes through reservation park of the Northern Caspian Sea. High probability of negative accumulation of industrial impact for the adhered area of the "Bolashak" base and the future oil and chemical complex of the Naional Company KazMunayGas.

To be continued