20th North Caspian Regional "Atyrau Oil and Gas" Exhibition
5-7 April 2023
Atyrau, Kazakhstan

NATIONAL COMPANY "KAZTRANGAS" AND NCOC SIGN KASHAGAN PHASE 2A PROJECT FRONT END ENGINEERING DESIGN AGREEMENT

Nur-Sultan, December 14, 2021: North Caspian Operating Company N.V. (NCOC), the Operator of the North Caspian Project, and Joint Stock Company "National Company KazTransGas" (KTG) inform on reaching an agreement to enter into Kashagan Phase 2A front end engineering design phase during 2022-2023 which envisages increase of Kashagan raw gas processing capacity by 2 billion cubic meter per annum.

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The Phase 2A project aims at increasing the Kashagan field oil production by roughly 50,000 bbls per day, and the processing of 2 billion cubic meter annually (BCMA) of sour gas.

This project involves NCOC installing two sour gas pipelines along the existing pipeline corridors: one from Kashagan offshore complex to the Bolashak Onshore Processing Facility (OPF), the second from the Bolashak OPF to a 1 BCMA sour gas treatment plant, and implementing minor modifications required to the existing offshore and onshore facilities.

In turn KTG will order a new 2 BCMA sour gas treatment plant to be built in addition to 1 BCMA sour gas treatment plant which is currently under construction.

According to the NCOC Managing Director, Olivier Lazare, "It is a great milestone towards the further development of Kashagan field resources: the final decision Kashagan Phase 2A will be defined based on the FEED results, which will be conducted under the signed agreement."

Implementation of this project will have a significant impact on the social and economic growth of Atyrau region and will increase gas resource base as well as stimulate the economic development of the entire Kazakhstan.

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