The state-owned company KazMunayGaz announced the potential deposit, emphasizing that the geological structure of the discovery is similar to the Kashagan oil field – one of the largest and most technologically demanding deposits in the world.
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The newly discovered structure, referred to as a carbonatite massif, has aroused great interest in the energy industry. During preliminary exploration work, a high-pressure gas flow was obtained, confirming the presence of hydrocarbons. However, experts emphasize that the project is at a very early stage.
Further drilling and detailed analysis will be required to confirm the extent of the recoverable reserves.
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— The geological structure of this deposit is very similar to Kashagan, which gives us hope for huge resources, but at the same time poses technological challenges for us – emphasize representatives of KazMunayGaz.
Technological challenges and costs
Comparisons to Kashagan, a field containing gigantic reserves of oil and gas, are justified, but also raise concerns. The exploitation of Kashagan lasted many years and was associated with numerous technical difficulties, such as high pressure and the presence of toxic sulfur compounds. Production in this field started with a delay, and the project costs significantly exceeded the original assumptions.
Kazakhstan has been cooperating with international oil companies on the exploitation of Kashagan for years. However, these relationships did not always run smoothly. The country's authorities conducted legal disputes with foreign partners regarding, among others, division of project profits and costs, which required resolution through international arbitration.
Polish companies and Polish investors have also learned how difficult the Kazakh oil production market is. It is enough to recall the history of Petrolinvest, which in the first decade of the 21st century tried to develop exploration projects in this country.
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Owned by Ryszard Krauze, one of the richest Poles, the company obtained licenses for several oil and gas areas, pinning great exploration hopes on them, however, operating in difficult geological and regulatory conditions turned out to be much more demanding than expected. The entire venture ultimately ended in failure.
Kazakhstan on the raw material map of the world
Kazakhstan already occupies an important place on the global energy map. The country has about 30 billion barrels of proven oil reserves, which is 1.7 percent. world resources. This puts Kazakhstan in the second ten largest oil producers.
In addition, the country has significant natural gas resources and is the world's largest uranium producer. It also mines coal, copper and zinc.
However, experts indicate that up to a dozen or so years may pass from the discovery of a new deposit to the commencement of its exploitation. According to Global Energy Monitor analyses, the average time needed to start mining for such projects is currently approximately 15 years.
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If initial estimates regarding the new deposit are confirmed, Kazakhstan may strengthen its position as one of the key producers of energy raw materials in Central Asia. However, the road to the full potential of the new geological structure will be long and full of challenges.
