New Oil and Gas Processing Plant to Be Built in Kazakhstan

Contractors have been selected for two major EPC (engineering, procurement and construction) tenders linked to the Kalamkas-Khazar field in Kazakhstan’s Caspian sector, Orda.kz reports, citing Upstream Online.

According to Upstream, one of the tenders involves building a new coastal oil and gas processing plant, while the second covers the installation of three parallel subsea pipelines connecting the facility to offshore production platforms.

However, timing of when the awards will be finalised remains unclear despite the Kazakh government pressing for the final investment decision (FID) before the end of this year. Authorities in Astana are hopeful that the development of the two northern Caspian Sea fields — Kalamkas and Khazar — will provide Kazakh contractors with an influx of orders for equipment and services, Upstream notes.

Kalamkas-Khazar Operating LLC, which is handling the front-end design for the Kalamkas-Sea and Khazar oil and gas fields, is partly owned by Russian energy giant Lukoil.

The final investment decision is expected in the fourth quarter of 2025.

The development contract runs through 2067, and once launched, production at the two sites is projected to reach four million tons of oil annually. Project costs are estimated at $6 billion.

Original Author: Nikita Drobny