Khvalynskoye

Khvalynskoye Oil and Gas Field Profile

Location

The Khvalynskoye oil and gas field is located in the northern part of the Caspian Sea, approximately 260 kilometers from Astrakhan, and lies within Kazakhstan's sector. The field is situated at a water depth of 25-30 meters.

Geology and Reserves

The Khvalynskoye field is a conventional gas condensate field, with reserves formed in the lower Cretaceous and upper Jurassic deposits. The field contains significant reserves of natural gas, condensate, and oil.

• Natural Gas: Estimated reserves of 322 billion cubic meters, with recoverable reserves classified as C1+C2 amounting to 127 billion cubic meters.
• Condensate: Estimated reserves of 17 million tons, with recoverable C1+C2 reserves of 9.6 million tons.
• Oil: Estimated reserves of 36 million tons.

History and Development

• Discovery: The field was discovered in 2002.
• Exploratory Wells: Two exploratory wells, Khvalynskaya-1 and Khvalynskaya-3, were drilled. Khvalynskaya-1 was started in July 1999 and reached a depth of 4,200 meters, discovering ten promising oil and gas reservoirs. Khvalynskaya-3 was completed in 2002 at a depth of 4,338 meters.
• Joint Venture: In 2003, Lukoil and KazMunayGas signed an agreement for the joint development of the Khvalynskoye field. The joint venture was formalized in 2005. In October 2009, Total and GDF Suez joined the project, acquiring a 25% stake (Total 17% and GDF Suez 8%) from KazMunayGas’s initial 50% stake.

Ownership and Operation

• Operator: Lukoil operates the project with a 50% stake.
• Partners: Other partners include KazMunayGas (25%), TotalEnergies (17%), and GDF Suez (8%).

Development and Production

• Development Phase: The first phase of the project development was estimated to cost $5 billion, with Total and GDF Suez contributing about $1 billion.
• Production Start: The field was expected to become operational in 2016, with initial production rates estimated at 8-9 billion cubic meters of gas per year.
• Transportation: The produced gas will be transported to Russia, and the oil and gas will be connected to the LSP1 ice-resistant platform located in the Korchagin field.

Technical Details

• Seismic Surveys: A 3D seismic survey was completed by mid-2005, identifying five deposits, including four gas condensate and one oil deposit.
• Drilling Rig: The Astra jack-up rig was used for drilling, capable of drilling to vertical sea depths of 45 meters and well depths of up to 5,000 meters.

Environmental and Regulatory Aspects

• Production Sharing Agreement (PSA): A draft proposal for the PSA and a feasibility study were submitted to the Russian Ministry of Energy in September 2010. The PSA was expected to take at least two and a half years to finalize.

The Khvalynskoye oil and gas field is a significant project in the Caspian region, highlighting the collaborative efforts between Russian and Kazakhstani companies to develop hydrocarbon resources in the area.