Kashagan Oil Field Development

North Caspian Sea, Kazakhstan

Trusted expert advisors to the Kazakh Government on one of the world’s biggest and most complex mega-projects

The Republic of Kazakhstan’s Kashagan oilfield extends over a 3300km2 in the harsh north Caspian Sea, holding 4.5 billion tons of oil. The scale, safety, engineering, logistical and environmental challenges make this one of the world’s biggest and most complex mega-projects.

Brief

To act as trusted commercial, programme and engineering advisors to the Republic of Kazakhstan both as state owned consortium member JSC NC KazMunayGas and PSA LLP which acts for the Ministry of Energy.

What we did

Detailed technical audit of the Consortium Contractor including contractual ecosystem, systems, processes, controls, and managerial performance.

Technical and commercial evaluation of Consortium Contractor’s proposed options and subsequent proposed improvement works for phase II works – principally to increase experimental production to full capacity. Failure causation analysis of technical issues including desktop studies and laboratory testing.

Year on year forensic analysis of Consortium Contractor’s performance for contractual and commercial compliance and ultimately cost recovery under the production agreement contract. Expert engineering, contractual and commercial assessment of project delays, cost increases and the associated programme and budgetary impact.

Party support in commercial negotiations. Subsequent evaluation of draft contractual amendments to the development plan and budget for the following year.

Outcomes

Cost, programme and technical assurance providing governmental stakeholders with enhanced confidence in the development plan and budget.

Value optimization for the Kazakh people on a project of national significance.

"The HKA team have supported us in the analysis and examination of technical and commercial issues, strategic and commercial advice, audits, and negotiations between the contractor and our organisation.

Over the course of several years we have appreciated the great value of [HKA's] collaborative work and advice. We particularly value our open
discussions and honest relationship with the technical and commercial teams."
Managing Director
PSA LLC
Project Details
  • Client
    JSC NC “KazMunayGas” and PSA LLP
  • Year
    2007 - ongoing
  • Value
    US$ 187 billion
  • Services
    Expert
  • Sectors
    Oil & Gas