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A GIANT OILFIELD

North Caspian Sea, Kazakhstan

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

Brief

The oil field covers 3,300 square kilometres of the North Caspian Sea. Its recoverable oil reserves are estimated at 9-13 billion barrels. The scale, safety, engineering, logistical and environmental challenges make this one of the world’s biggest and most complex mega-projects.

The client engaged HKA to act as trusted commercial, programme and engineering advisors.

What we did

As expert advisors, we provided a suite of specialist services which included:

  • 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

Our cost, programme and technical assurance provided the client and key stakeholders with enhanced confidence in the development plan and budget, saving our client billions of dollars and allowing them to successfully renegotiate the Production Sharing Agreement.

"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
Client
Project Details
  • Client
    Confidential
  • Year
    2007 - ongoing
  • Value
    US$ 187 billion
  • Services
    Engineering, Quantum, Multidisciplinary, Delay
  • Sectors
    Oil & Gas