Complex Global Projects - Karachaganak Expansion Project

Page 1

What is the Project?

The Karachaganak Field Expansion Project (KEP), Kazakhstan.

One of the largest gas condensate fields in the world.

15+ years of successful operations.

Output has trebled since 1999.

Objectives of the Project

Maximise liquids recovery and optimise future liquids take-off.

Build on 'plateau extension projects' and extend oil production at plateau rate.

Focus on increased gas reinjection for reservoir pressure maintenance & flexibility for future additional gas sales.

Scope of the Project

Provide new production & reinjection wells.

Additional oil/gas separation and processing facilities.

New gas reinjection plant.

Infield pipelines.

New gas-fired power station.

Infrastructure.

Execution Strategy

KEP will be a multi-stage development.

With discrete independent projects and specific scopes and objectives for each stage.

What are the Key Drivers for a Phased Development:

Ensure project is feasible to execute.

Reduce execution risk.

Manageable work programme.

Key Challenges of the Project

Location

Extreme climate

Complex fluid systems

Heterogeneous carbonate reservoir.

Risks of Mega Projects

Megaprojects are complex and fragile.

Technical & organisational complexity.

Stakeholder attention.

Experience is limited.

Cost and schedule targets are a key success factor.

Mut have the right resources and focus them.

Equipment & material lead in times have increased as new projects increase demand.

Capacity of the industry has stretched as the number of megaprojects has increased.

The industry is starting to see the impact of the significant loss of experienced staff.

There are new players in the client and contractor side.

Industry's focus tends to be on lowest cost rather than value.

Industry cost & schedule performance is declining.

Managing Risk

A good project definition in the early stages of the project adds significant project value.

New Page