Engineering and geological works have commenced at the Tub-Karagan area (Kazakhstan sector of the Caspian Sea).
This work is being carried out by GeoTeniz (Kazakhstan) and Yuzhmorgeoeko (Russia) by order of Tub-Karagan Operating Company b.v. (subsidiary of KazMunayGas and LUKOIL Overseas).
The main purpose of the work is to get information for starting-point of the offshore drilling platform footing and to arrange the drilling project for the first exploratory well. In particular, drilling of four wells up to 50 meters depth for derrick legs is expected. Operations will take 2 months.
The Tub-Karagan area is located in the central part of the Kazakhstan Caspian sector. The average sea depth in the area is about 10 m. The block covers the area of 1372 sq. km. The nearest port is Bautino (Mangistau Region of Kazakhstan).
Forecast resources of Tub-Karagan calculated by volumetric method amount to 426 million tons of fuel equivalent, including over 320 million tons of oil. The probability of hydrocarbons discovery is evaluated as high. Commercial discovery is possible in 2005. Commercial operation will commence in 2012.
Maximum annual production under the project is estimated at 7.2 million tons, accumulated production (by the contract end) - 110 million tons, accumulated gas production -19 billion m3. Number of production wells is 83, 79 out of them are oil wells and 4 gas wells. The framework document is the PSA with 40-year term.