Oil production at operating assets
|Current declining well stock,||11,667||12,235||11,961|
|including idle wells||495||462||616|
|Total for KMG-operated assets||15,766||16,564||15,817|
As a legacy of more than a hundred years in the oil and gas industry, KMG’s producing asset portfolio consists mostly of mature fields. Therefore, the Company prioritises measures to improve production efficiency at mature fields and is committed to energy saving across operations while also maintaining a strong focus on continuous operating process optimisations and improvements and driving higher oil recovery rates.
Today about 85% of total oil production at the Company’s operating assets comes from seven key fields: Uzen and Karamandybas (JSC OzenMunaiGas), Kalamkas and Zhetybai (JSC MangistauMunaiGaz), S. Nurzhanov and East Moldabek (JSC Embamunaigas) and Karazhanbas (JSC Karazhanbasmunai).
On 11 December 2020, two wells were brought into pilot operation at the East Urikhtau field. If the wells prove successful at the first phase, and if the market conditions are favourable, the Company will consider moving on to the second phase, under which 58 wells will operate at the Urikhtau group of fields and a number of production facilities will be constructed. If we carry out the full-scale implementation of the project, the expected production may reach 1.5 bln m3 of gas and 500,000 tonnes of oil annually.
In 2020, KMG’s share in oil production from operating assets decreased by 1,363 ths tonnes to 14,113 ths tonnes (279 kbopd), reflecting natural decline in production from mature fields and OPEC+ agreement.
A total of 15,817 wells were in operation in 2020, of which 11,961 were classified as the current declining well stock, which accounts for the bulk of oil and condensate production.