Kalamkas-More

Location

The Kalamkas-Sea field is situated in the central part of the North-Eastern Caspian Sea, with sea depths ranging from 7-8 meters. The Khazar field is located approximately 30 km to the south-west of the Kalamkas-Sea field and 65 km to the north-west of the Bozashy peninsula, also with sea depths of about 6-8 meters.

Participants

The project involves a partnership between PJSC LUKOIL and JSC NC KazMunayGas. In 2023, the companies signed agreements that define the rights and obligations for the joint development of the Kalamkas-Sea, Khazar, and Auezov subsoil areas. These agreements resulted in both companies holding equal shares in Kalamkas-Khazar Operating LLC, the operating company for the project.

Terms of Implementation

The project is currently in the front-end engineering design (FEED) phase, with the final investment decision (FID) targeted for the mid-2020s. Production is expected to begin by the end of the decade.

Resources and Reserves

• The total predicted recoverable resources for the Kalamkas-More and Khazar fields include 81 million tons of oil and 22 billion cubic meters of gas.
• The project is one of Kazakhstan's main pre-FID greenfield projects, indicating significant potential reserves.

Investments and Jobs

• The project is estimated to require investments of approximately $6.4 billion.
• It is expected to create around 2000 new jobs during the design and development stage and about 200 jobs during the operational phase.

Geology and Field Characteristics

• The Kalamkas-Sea field is described as a long and narrow anticline, approximately 50 km long and up to 6 km wide.
• The geology of the area involves reservoirs with specific qualities, which are detailed in the Wood Mackenzie report, including oil and gas reservoir characteristics for both the Kalamkas-More and Khazar fields.

Development and Production

• The joint development plan includes detailed metrics such as production profiles, initial tie-ins for oil, gas, and water, and sales routes for the extracted resources.
• The production plan is designed to optimize the extraction of both oil and gas from the fields, with specific current and previous concepts outlined in the Wood Mackenzie report.

Infrastructure and Costs

• The project involves significant infrastructure development, including initial tie-ins and sales routes for oil and gas.
• Historical exploration and appraisal (E&A) costs, capital costs, operating costs, and abandonment fund payments are all part of the comprehensive cost analysis for the project.

Fiscal and Regulatory

• The project is subject to Kazakhstan's fiscal and regulatory framework, including the Alternative Subsoil Tax (AST), Oil Export Customs Duty (ECD), Corporate Income Tax (CIT), and social investment programs.

Recent Developments

• In 2023, LUKOIL and KazMunayGas signed several agreements to formalize their partnership and define the terms for the joint development of the Kalamkas-Sea, Khazar, and Auezov fields.
• Shell had previously been involved in the project but dropped its involvement in 2019, with LUKOIL taking over as the strategic partner.