New Caspian strategy

New tendencies are very visible in the policy of choice by the official Astana and the National oil and gas company of Kazakhstan KazMunayGas of foreign contractors in the future projects on the Caspian shelf. On announcing of the reconsideration of the state program of the resources of the Caspian sea, but without ending the process of re-writing, KazMunayGas for the last half of the year activated the negotiations process on new projects in the Kazakhstani sector of the Caspian sea.

To the previous approach, when for one foreign partner only one plot of land is offered with the supposed reserves of about 100 million tons of oil, the "geographical approach" added and interest for "exchanged operations with foreign partners." Such tendencies were revealed distinctly during the negotiations of the president's Administration and StatoilHydro the Norwegian company on reanimation of negotiation process and preparation stage on realization of the project of the Caspian part of Abai.

Near Kalamkas

Geographically the Abay oilfield, as well Satpayev oilfield, negotiations on the beginning of the development of which were carried out during the February visit of the president of Kazakhstan to India, are located near Kalamkas-sea oilfield. The license for development of the Kalmkas-sea belongs to the international consortium NCC (ex-Agip KCO). The consortium in 2007 oficcially announced that the next after Kashagan will be realized a project of the above-salted oilfield Kalamkas-sea with the extracted reserves of 130 million of tons of oil. There is an agreement initiated by the Shell company between Agip KCO and Caspian Meruerty Ltd on possible joint development of the Kalmkas-sea oilfield and there were opened for the last years two oilfields on the project of the oilfield Zhemchuzhina (Auezov and Khazar), which are located on the south of the oilfield Kalamkas-sea. During the year according to the KMG plan there will be 'involved' eastern part from Kalamkas-sea and Issatay plot. Such a complex concentration of the efforts by Astana strictly in the district of the shelf is not something occasional, what sources in the KMG prove.

Exchanged asset

Our sources in the national company KazMunayGas and KazMunayTeniz underlined, that agreements on the project of Abai oilfield does not include in itself and development of Issatay oilfield. The negotiations with the Norwegian company interrupted in 2005 were carried out on the oilfield Abay, as well as on Issatay, which is located in the district of the Kalamkas-sea oilfield. Resumption of the negotiations on Abay project was initiated by the Kazakhstani side, although on official version of the press service of KMG - the first step was made by the Norwegians. In exchange for 50% of the share in the project of the Abay, Astana wished to get some unknown foreign asset of StatoilHydro company with exit to the markets of the Central and Eastern Europe. It is a principally new step in the activity of the National company. Thus, additional conditions, for ConocoPhilips company on the plot N, for the Korean consortium on Zhambyl oilfield and for the Indians on the oilfield Satpayev their participation in the development of oil and gas projects in the nearby Caspian oblasts of Kazakhstan. For the first time the interest was shown to the foreign assets linked with the Caspian project. According to press service of KMG, the agreement is being prepared with the Norwegian StatoilHydro company on the principles of the joint work on the Abai oilfield on the Caspian shelf. "In the nearest time KazMunayGas and StatoilHydro are intended to familiarize with geologic and technical information and to prepare an agreement on the principles of the joint work on the Abai oilfield," the message runs.

At the end of the week both companies signed a memo of understanding in the person of the president of KazMunayGas Kairgeldy Kabyldin and the president and chief executive director of StatoilHydro Helge Lund.

Abay - 'Fourmillioner'

KazMunayGas declared that the total perspective resources of the Caspian marine oilfield Abai makes up 760 million ton of oil, director of the department of the development of new marine projects of the National company KazMunayGas Edige Zholdassov. The possible volumes of the annual extraction of oil on the Abai oilfield will make up 4 million tons of oil and 500 million of cubic meters of gas. Production projects will be managed by the marine national company KazMunayTeniz. On the results of the evaluation, the expected geologic, perspective resources of oil makes up: at the Abai structure - 607 million ton, at the Aliya structure - 125 million tons, Abay Yuzhnyi - 28 million tons. The Abay plot is located in the northern part of the equatorial of the Kazakhstani sector of the Caspian sea at 60-70 km to the north-west direction from the seaside of the peninsular Buizachi. The depth of the water 5-10 m. The nearest spring points are periodical villages on the oilfields Karazhanbas and Kalamkas, are located at the equal distance 80 km from the center of the square. At 160 km to the south-west from the oilfield Abai there is Bautino port, where the base of the support of marine operations of the Northen-Caspian projects is located.

Exploration well Abay will be laid on the basis of the interpreted data, conducted by the company Kazakhstancaspiyshelf. The project depth of the well - 2000 meters. The general expenses of the first stage on the Abay structure will make up approximately USD20,8 million, including 19 million for drilling of the exploration well. The medium depth of the oil bedding will make up 1300 meters on the cretaceous and 1800 meters on juristic deposits. The depth of the sea - 9,5 meters.

In 2004 on the basis of the re-interpretation of the seismic data there were rebuilt and specified the structured buildings at the Abai oilfield, such as: Abay, Abay Yuzhnyi, Aliya.

Indian oilfield

The memo of understanding between the Kazakhstani and Indian companies were signed in February 2005. India had plans for four oilfields at the Caspian shelf - Satpayev, Makhambet, Shagala and Shattyk. But it doesn't correspond with plans of the official Astana: perspective oilfields of the Caspian shelf - is as unique goods, which have not only economic, but also a political significance. As a result of the long negotiations only one oilfield was provided for the Indian company, besides the share of the company was limited for 25% on the exploration stage under conditions of the entire financing of the project on behalf of the Indian side. In case of discovery of commercial reserves of oil the Indian company may count for acquisition of 10% more.

The provided oilfield Satpayev for ONGC Mittal Energy Ltd is located in the central part of the Northern Caspian Sea at 60 km from the shore of the Kurmangazinskiy district, at 160 km from Atyrau. The depth of the water in this place is about 7-10 meters. There are three perspective structures which are divided: Satpayev, Satpayev Vostochnyi and Karina. The forecasted extracted resources of the oilfield - 253 million ton. Just to remind that ONGC Mittal Energy Ltd is in the joint possession of the ONGC and steel producing king Lakshmi Mittal, investment company of which is an owner of 12,5% share of the neighboring project of the oilfield Satpayev - Yuzhnyi Zhambai.

Issatay oilfield

The total perspective geological resources on the Issatay oilfield are estimated in oil of about 468 million ton, what allows to consider starting of exploration works rational, said director of the department of the development of new marine projects of the National company KazMunayGas JSC Edige Zholdassov. According to him the structures Issatay, Burynshik, Sunkar and Tolkyn are considered prepared for conduction of the exploration drilling. On the estimation results, the expected geologic, perspective oil resources make up: on the structure of Issatay - 248 million ton, Tolkyn - 161 million ton, Sunkat structure - 60 million ton, Burynshik structure - 64million ton. The working program of the Exploration and Estimation works are planned to be realized in two stages. KMG in 2003 applied to the competent body for undertaking of the direct talks and receiving the right for subsoil usage with the supplement 'Preliminary program of exploration and estimation of the oilfields Abay and Issatay."

At the moment there is preparation of the tender documentation on the choice of contractor for carrying out of the ecologic researches. Later the report will be prepared on the preliminary estimation of the influence of oil operations on environment on the basis of the received results, the estimation of the influence on the environment will be developed for every stage of the exploration works (seismic exploration and drilling of the exploration well).

Issatay is located in the equatorial of the Caspian sea at 40 km to the north from the seaside of the peninsular Bozachi. The depth of the water is 3-6 meters. The nearest inhabited points are periodic villages at the oilfield Karazhanbas and Kalamkas. At 200 km to the south-west part of Issatay there is Bautino port with the base of the support of the sea operations of the North-Caspian project.