Kazakhstan’s national oil and gas company, KazMunayGas, is embarking on a venture by deploying its drilling rig in the Turkmen sector of the Caspian Sea for the first time as reported by Caspian News. The announcement was made by Askhat Khasenov, chairman of the board of KazMunayGas, during the international conference “Oil and Gas of Turkmenistan” held in Ashgabat on October 24.
Khasenov revealed that KMG Drilling & Services, a subsidiary of KazMunayGas, has signed a contract with the UAE-based Dragon Oil to provide drilling services at the Cheleken field. This marks a milestone as the Kazakh jack-up floating drilling rig, Satti, will be utilized for the initial time in this region. The Satti rig, the first of its kind to be designed and built domestically in Kazakhstan, measures 72 meters in length, 64 meters in width, and stands 119 meters tall, with a total weight of 10,800 tonnes.
In addition to the deployment of the Satti rig, Khasenov emphasized KazMunayGas’s potential role as a partner in various operations, including drilling, well overhauls, and underground repairs. To streamline operations in Turkmenistan, KMG Drilling and Services has established a branch office in Ashgabat.
On a related note, Kazakhstan’s national company QazaqGaz recently signed a strategic cooperation agreement with Turkmenistan’s State Concern Turkmengaz on October 10. This agreement aims to bolster the gas industry by expanding the resource base, conducting exploration activities, and involving QazaqGaz in significant Turkmen gas fields, including the Galkynysh field. It also covers crucial pipeline projects such as the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline and the import of commercial gas from Turkmenistan to Kazakhstan.
Turkmenistan is home to substantial gas reserves estimated at 13.4 trillion cubic meters (473.2 trillion cubic feet), ranking fourth globally, trailing only Russia, Iran, and Qatar. Approximately 75% of Turkmenistan’s exports are derived from the gas sector, with China and Russia as primary buyers, contributing significantly to the country’s recent economic growth.
Currently, Turkmenistan supplies China with over 30bn cubic meters of natural gas annually via three lines of the Central Asian Gas Pipeline. The completion of line D is expected to boost annual supplies to the contracted 65bn cubic meters. Turkmenistan is actively developing fields both on the Caspian Sea shelf and onshore in the Balkan region, with notable involvement from companies like Eni, Dragon Oil, and Petronas.
Kazakhstan, on the other hand, has proven recoverable gas reserves estimated at approximately 3.8 trillion cubic meters, comprising 2.2 trillion cubic meters of associated gas and 1.6 trillion cubic meters of natural gas. Major reserves are concentrated in four fields: Karachaganak, Tengiz, Kashagan, and Zhanazhol. Kazakhstan’s production in 2023 reached a total of 59bn cubic meters of natural gas, with annual consumption projected to rise from 20.9bn cubic meters this year to 40bn cubic meters by 2030. Following a recent three-year contract with China, Kazakhstan increased its natural gas exports to 5.8bn cubic meters in 2023.
