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Kazakhstan's Karachaganak gas output up in 2007

Thu Jan 31, 2008 4:12am EST

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ASTANA, Jan 31 (Reuters) - Natural gas production at one of Kazakhstan's biggest onshore oilfields, Karachaganak, rose to 14.2 billion cubic metres last year, a senior Kazakh energy official said, compared with 11.9 billion a year earlier.

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Uzakbai Karabalin, president of Kazakh state oil and gas company KazMunaiGas [KMG.UL], said oil production at the field was 11.6 million tonnes but he gave no comparative figure.

Karachaganak is co-led by Italy's Eni (ENI.MI) and Britain's BG Group (BG.L), which both hold 32.5 percent stakes, while U.S. company Chevron Corp. (CVX.N) owns 20 percent and Russia's LUKOIL (LKOH.MM) has a 15 percent interest.

Previously LUKOIL said Karachaganak's gas production was 11.9 billion cubic metres in 2006.

KazMunaiGas is not part of the project but it is watching its development closely as it plans to build a $1.2-1.5 billion natural gas processing plant there over the next few years.

Russia's Gazprom (GAZP.MM) and the Karachaganak partners agreed last year to process up to 16 billion cubic metres of sulphur-laden Karachaganak gas at Russia's Orenburg plant for 15 years.

Karabalin said the Karachaganak project was undergoing a third phase of exploration -- a step that would help nearly double its production by 2012. (Writing by Maria Golovnina, editing by Anthony Barker)



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