Oil and gas upstream

Replenishing Reserves and Conducting Geological Prospecting Works

As of January 1, 2011, the proved residual extractable oil reserves of the JSC NC “KazMunayGas” (including participation shares) amount to 791,300,000 tons, and the growth of oil reserves above the approved Strategy of Development of the JSC NC “KazMunayGas” occurred mostly on account of recalculation of reserves of deposits and additional prospecting of productive assets.

In 2010, in the framework of GPW there were received industrial flows of oil at the block Liman, structure Novobogatinsk SE (above-the-bench) and confirmed the oil-and-gas-bearing capacity of the structure Rakushechnoye Morye, Block H (KSKM), and confirmed the oil-and-gas-bearing capacity of the carbonate mass KT-2 and the Devonian field Urichtau. Based on the findings of seismic studies, there have been identified new promising structures and occurrences at the prospecting sections of KSKM and land.

There are being conducted the works by the project “Comprehensive Study of Sedimentary Basins of the Republic of Kazakhstan” and it is expected to develop in 2011 the quantitative forecast of oil-and-gas-bearing capacity of the Near-the-Caspian depre4ssion, Mangyshlak and Southern Turgay, as well as to proceed with analysis of geological and geophysical materials.

Also there are being continued the geological prospecting works, in accordance with the Plan of Development of the JSC NC “KazMunayGas”.

November 2004 saw the creation of Geological-technological service (GTS) designed to ensure outrunning reserves gains and hold geological and technical monitoring of major oil and gas projects of NC «KazMunayGas» JSC and its subsidiaries, including the projects where the Company acts as the Authorized organization.

The Company has developed the hydrocarbon potential enlargement plan and has started implementing it.

The Plan includes:

• geologic exploration including exploration and mining of oil and gas fields and supplementary exploration of the contract territory on ground and sea blocks;
• getting the license for subsoil management, exploration and mining hydrocarbons on ground and sea blocks;
• participating in new and current oil and gas projects;
• holding scientific researches on hydrocarbon reserves assessment on land and sea;
• participating in geological-geophysical data base creation with reference to the supervised projects – corporate data base of NC «KazMunayGas» JSC (KDS) and National bank of oil projects data (NBD).

Geological-technological monitoring of oil and gas projects involve examination of annual and future programs on major oil and gas projects in terms of exploration, assessment and hydrocarbon fields’ development technologies:

1. rational development of hydrocarbon resources
2. cost-effectiveness increase which is eventually targeted at maximizing economic effect for the Republic of Kazakhstan

The working groups consisting of oil projects operators and subsidiaries assess and revaluate hydrocarbon reserves and analyze field development estimates. The results are discussed at the meetings of technical committees.

Oil and gas mining operator – «KazMunayGas Exploration Production» JSC.

GTS takes part in corporate management and monitoring of exploration and development projects, and also in negotiations concerning bids for new investment blocks.
Special focus is made on the following tasks: geologic exploration optimization, major oil projects development technologies, advanced exploration methods, tank parameters evaluation and forecast, rational development of oil and gas fields with due account for the contemporary scientific achievements and up-to-date computer technologies.

The company takes advantage of up-to-date computer technologies to examine and analyze geologic –geophysical and borehole data, geological and hydrodynamic models. There are software training programs for specialists.
All of the above enable to analyze the results of the research in the most effective way, prepare recommendations and proposals on exploration and development of fields, which can bring about the increase of economic effect of the oil operations at all stages of the field life.

Scientific research on hydrocarbon reserves assessment are held on the contract and potential oil and gas fields of the Republic of Kazakhstan both on land and sea. At the same time they re-evaluate, interpret and summarize new and existent geologic-geophysical data, use aerospace methods of distant exploration of Earth, form or update geological models of sedimentary basins, potential structures, objects and fields, assess potential resources and hydrocarbon reserves.

Direct negotiations with competent body of the Republic of Kazakhstan resulted in signing of the contracts on subsoil management concerning blocks P-9, P-24 (Teresken), Temir site (Aktobe region) , Karaton-Sarkamys (Atyrau region), on the territory adjacent to Uzen and Karamandybas fields (Mangystau region). At present, the rights for subsoil management of Temir, Karaton-Sarkamys, Uzen-Karamandybas, and Teresken are transferred under the ownership of «KazMunayGas Exploration Production» JSC.