Home > News

NCOC Facts & figures

Year-end 2017

February 23, 2018

Project Management

  • The North Caspian project is developed under the North Caspian Sea Production Sharing Agreement (NCSPSA), signed by the Republic of Kazakhstan and an international consortium of major oil and gas companies in 1997.
  • Since 31 October, 2013, the Consortium comprises seven shareholding companies with the following ownership structure:

                o   KMG Kashagan B.V.                                 16.877%

                o   Shell Kazakhstan Development B.V.       16.807%

                o   Total E&P Kazakhstan                              16.807%

                o   Agip Caspian Sea B.V.                              16.807%

                o   ExxonMobil Kazakhstan Inc.                   16.807%

                o   CNPC Kazakhstan B.V.                              8.333%

                o   Inpex North Caspian Sea, Ltd.                 7.563%

  • The project is managed by an Operating Company, NCOC (N.V.), acting on behalf of the shareholders

About North Caspian Project

  • The North Caspian project is the first major offshore oil and gas development in Kazakhstan. It covers five fields: Kashagan, Kalamkas Sea, Kairan, Aktoty, and Kashagan South West.
  • The giant Kashagan field ranks as one of the largest oil discoveries of the past four decades, with approximately 9-13 billion barrels (1-2 billion tonnes) of recoverable oil. The Kashagan reservoir is located 80 km offshore the city of Atyrau in 3-4 meters of water, and more than 4 km deep.
  • Given its scale and technical complexity, the Kashagan field will be developed in phases, with Phase 1 having just come on-stream. (Future phases of development are currently at a planning stage.) The combined safety, engineering and logistics challenges in a harsh offshore environment make Kashagan one of the largest and most complex industrial projects currently being developed anywhere in the world.
  • The fluid to be produced from Kashagan is a mix of hydrocarbons: light, gaseous components such as methane, ethane, carbon dioxide, and hydrogen sulfide, and heavier petroleum components. Kashagan as a reservoir is characterized by high pressure (initial (virgin) pressure of more than 700 bar), and a high concentration of hydrogen sulfide (H2S). A portion of the produced “sour” gas is re-injected back into the formation. The remainder is sent to the Bolashak onshore processing facility where the hydrogen sulfide is removed. This processed, or ‘sweetened’, gas is used for onshore and offshore power generation and some is marketed as Sales Gas.
  • A total of forty wells have been drilled for this phase of the project. The drilling program is now complete. 


Total number of wells













  • NCOC exported 8.3 million tonnes of crude oil in 2017. Primary export route via the CPC pipeline.

  •  With the start-up and optimization of raw gas re-injection, oil production is ramping up to more than 300,000 barrels per day continuing into 2018. Our approach to ramping up production is a sequence of steady and planned steps to build confidence in our equipment, processes, and the reaction of the reservoir. Safety, as always, is our first priority and will not be compromised.

  •  With the start of gas re-injection in August last year we have learned a great deal about how the reservoir reacts. Pressure decline, and hence production increase, is expected to be more gradual than originally anticipated.

  • Kashagan is a world-class resource with a production life of decades, and the production facilities are performing well, with reliability at or exceeding expectations. NCOC is dedicated to reach full design capacity of 370 thousand barrels per day at the earliest possible date, and will study options to accelerate it. The approach to increasing production has not changed: a sequence of steady and planned steps to build confidence in Project equipment, processes, and the reaction of the reservoir – with safety, as always, the first priority.

  •  NCOC delivered 2.7 billion cubic meters of gas in 2017 into the KasTransGas pipeline system.

  •  NCOC exported 109 thousand metric tonnes of sulfur by rail in 2017.


  •  NCOC reopened the first wells on A Island on 28 September 2016, as part of a program of testing and commissioning the production facilities.

  •  The RoK Ministry of Energy announced that the first batch of oil for export from the Kashagan field was dispatched on 14 October, 2016.

  • On November 17, 2016 the RoK Government officially acknowledged commencement of commercial production at Kashagan, as of November 1, 2016.

  • RoK President Nursultan Nazarbayev honored the project and its workers and veterans with a personal visit to Atyrau on December 7, 2016.

  • Commodity sulphur export began on October 28, 2017 when the first trial sulphur export train made up of 60 cars left the newly-completed Eskene West Rail Facility.

  • NCOC exported its first millionth tonne of crude oil and condensate from the Kashagan field on January 8, 2017.

  • On January 30, 2018, NCOC had safely produced and exported 10 million tonnes of crude oil and condensate from the Kashagan field since the start of production.

Benefit to Kazakhstan

  • Kashagan Phase 1 will have a production life of decades and its shareholders are expected to contribute billions of dollars in direct revenue to the Republic of Kazakhstan in terms of taxes and share of production.
  • As Kazakhstan’s largest direct foreign investment project, Kashagan Phase 1 has a powerful multiplier effect on the economy, creating employment opportunities for citizens of Kazakhstan and opportunities for local companies.

Local Content Development 

  • NCOC is committed to developing a world-class project that maximizes the use of local goods, works and services, whilst developing the skills of local people and the capacity of local companies. NCOC gives preference to local suppliers provided they meet quality, safety standards and offer materials and services competitive in price, quality and availability to those provided by international suppliers.
  • In 2017, overall payments for local content in goods, works and services have totalled more than US$13. 7 billion since 2004. In 2017 alone the North Caspian project spent US$328 million for local content in goods, works and services, equivalent to 32% of total expenditures.
  • At the end of 2017, 92% of more than 10,000 people working on the North Caspian project are Kazakhstan citizens, and 89% of almost three thousand NCOC employees are Kazakhstan citizens.
  • Since 1998 more than 16,000 Kazakhstan citizens have received training, either from NCOC or as employees of local companies being helped by NCOC. Over two decades, the Operator has spent in total about US$255 million on job skills and professional training to build local capacity for the North Caspian project.
  • From 2006 to 2017, the Operator assisted over 200 local companies to obtain international standards certifications; conducted more than three hundred technical qualification audits and site visits of local companies; and provided more than three thousand employees of local companies with specialized professional training in the most in-demand craft skills. In this period, more than 1200 local companies have participated in workshops and forums organized by NCOC ranging from general awareness to specialized seminars on tender writing and pre-qualification.


  • NCOC is proud to call Atyrau its home. Almost three thousand NCOC employees, and thousands more contractors and suppliers who work for the Kashagan Phase 1 project, are residents of communities in Atyrau and Mangystau Oblasts.
  • Mangystau and Atyrau oblasts also benefit from social and infrastructure related projects funded by NCOC. These have totalled more than a half-billion US dollars since the start of the Kashagan Phase 1 project. Twenty projects were completed in 2017.
  • NCOC engages on a regular basis throughout the year with the public to share information or discuss their concerns and questions about Kashagan Phase 1 project.
  • NCOC, and its employees, take active roles in community betterment, through sponsorship and donations, volunteer activities, and holidays, totalling $1.3 million in 2017.

Employees’ Area    |     Contact Us    |     Terms and Conditions    |     Image Gallery    |     Site Map    |     Search
©  North Caspian Operating Company