The Dunga oil and gas field is located in the Tupkaragan district of the Mangistau region. Geological reserves of the field are 106 million tons of oil and over 6 billion cubic meters of gas. The field was discovered in 1966.
The Dunga project is being implemented within the framework of the Production Sharing Agreement of May 1, 1994 (PSA) concluded between Oman Oil Company Limited and the Government of the Republic of Kazakhstan.
Currently, the project participants are Total E & P Dunga GmbH (60%), Oman Oil Company Limited (20%) and Partex Kazakhstan Corporation (20%), collectively referred to as Contractor. The operator of the project is Total E & P Dunga GmbH.
The Dunga field was put into trial production in 2000.
Between 2004 and 2006, the field was developed as part of a pilot development project with drilling of horizontal and vertical wells.
Since 2007 to the present, the Dunga field has been at the stage of full-scale development.
Since the beginning of the project, the amount of revenues to the state budget amounted to USD 308 million.
Dunga project production program
The Dunga project is currently at the stage of field development under the II stage program.
Within the framework of this program, the Contractor drilled 171 wells and modernized existing facilities, as well as commissioned new production areas with the appropriate infrastructure of the field, including:
109 production wells were put into operation, including 25 wells transferred to injection wells.
A new sea water intake station was built and put into operation.
Expansion of the throughput of the existing central collection point (hereinafter referred to as CCP);
6 oil gathering lines with parallel injection water conduits were built and put into operation;
The PST-01 section with chambers for receiving scrapers from each oil gathering line was put into operation, and a pipe rack was laid to the CCP.
At the PST-01 site, a new fleet of 4x5000 cubic meters oil storage tanks, paraffin separation tanks, a flare separator, a chemical reagent unit and drainage tanks were also built;
The accompanying auxiliary buildings and structures (an office building, workshops, a fire station, a service building, etc.) were built and put into operation.
It is planned to produce 640 thousand tons of oil and 61.3 million cubic meters of gas in 2019.
In 2018, 708 thousand tons of oil and 56.8 million cubic meters of gas were produced.
The Kazakh side contributes to ensuring the maximum level of local content by increasing the share of local goods, works and services in accordance with the provisions of the PSA and the requirements of the legislation of the Republic of Kazakhstan. In order to implement the terms of the PSA and support Kazakhstani producers, the Contractor developed and approved the Program for the development of local content in goods, works and services for 2018-2020.
Increasing local content in staff
The project contractor contributes to ensuring the maximum level of local content by increasing the share of local goods, works and services in accordance with the provisions of the PSA and the requirements of the legislation of the Republic of Kazakhstan. In order to implement the terms of the PSA and support Kazakhstani producers, a Program for the development of local content in goods, works and services for 2018-2020 was developed.
In 2019, an open day was held for suppliers and manufacturers in order to inform about their needs.
In 2019, the Dunga Production Sharing Agreement was extended for 15 years from 2024 to 2039, which will make it possible to additionally produce about 9 million tons of oil.
In 2019, the level of local content in the procurement of goods, works and services was 51%.
Social and infrastructure projects
In accordance with the terms of the PSA, the Contractor makes contributions for the implementation of social and infrastructure projects (SIP) in the Mangistau region. For 2018, the cost of the SIP implementation amounted to USD 100 thousand. In total, over the period from 2010 to 2018, more than 13 million US dollars were allocated and projects worth 2.8 million US dollars were implemented.