Nostrum Oil & Gas has awarded a $150 million contract for construction of a third train to expand the gas treatment facility at its Chinarevskoye field in north-west Kazakhstan.
The award to local contractor KazStroyService, subject to approval of Nostrum’s shareholders, means the planned $500 million expansion of the plant is on track for completion by mid-2016, the London-listed company stated.
The addition of the third train is expected to deliver 100,000 barrels of oil equivalent per day by the end of 2016 to double production capacity at the oil and gas condensate field, which fuelled record average output for the Kazakhstan-focused company of nearly 45,600 boepd in the first half.
Nostrum said it is on course for record revenue of more than $445 million for the six-month period, with its final results due to be released next month.
“Operationally we continue to outperform our yearly production target of 45,000 boepd. The operational outperformance combined with the high oil price puts us well ahead of our financial targets for the year,” said chief executive Kai-Uwe Kessel.
Nostrum earlier this year made a fresh commercial discovery at the Chinarevskoye field with estimated in-place volumes of 8 million barrels, with further testing to take place subject to approval of an application to extend the field’s licence.
The company now aims to kick off exploration and appraisal at three adjacent fields - Rostoshinskoye, Darzhinskoye and Yuzhno-Gremyachenskoye – after conducting 3D seismic processing and has launched a tender process for drilling, with the first well due to be completed by year-end.