Outlooks for increase of oil and gas industry potential Outlooks for increase of oil and gas industry potential Authors: Kuandykov B.M., Yeskozha B.A. - Association of Petroleum Geologists of Kazakhstan Authors: Kuandykov B.M., Yeskozha B.A. - Association of Petroleum Geologists of Kazakhstan Almaty, October 04, 2012 KIOGE 2012 Conference

Oil Production- Ranking by Countries (top 26 countries, as of the end of 2010) Kazakhstan Kazakhstan ranks 9th by proved reserves of oil, with a 2.9% share of total world reserves and 18th by proved reserves of gas with a 1.0% share of total world reserves. (All figures are at end Source: BP Statistical Review of World Energy, June 2011.) 2020 production planned ranking: 8 place Million Tons Kazakhstan: mln tons (1.6 mln bbls/day). Forecast for mln tons (2,6 mln bbls/day) 1

Oil, mln tons FORECAST Gas, bln m 3 FORECAST Kazakhstan: Oil & Gas Production ( ) 2

Bln. t (25 bln barr.)** 5.3 Bln. t (more than 38 bln barr.)*** trln. cub. м** 3.3 trln. cub. м*** 2010 Including new fields discovered in the Caspian Sea shelf.* Recoverable Oil Reserves Recoverable Gas Reserves Kazakhstan is currently implementing the first- rate world oil and gas industrial projects: Tengiz, Kashagan, Karachaganak The total forecast recoverable hydrocarbon resources - 17 bln tons, of which 8 bln tons fall on the the Caspian Sea shelf* (2009) Ranks 9 th in the world by its proved oil reserves ** (as of the end of 2010) Ranks 18th in the world by its proved gas reserves ** (as of the end of 2010) Sources *Governmental Program on development of oil and gas sector in the Republic of Kazakhstan for ; ** BP Statistical Review of World Energy *** Interview of the Kazakh Minister of oil and gas to the magazine “Oil and Gas of Kazakhstan”, Dec, Kazakhstan: Hydrocarbon Reserves Growth Excluding new fields discovered in the Caspian Sea shelf.* 3

Sedimentary Basins of Kazakhstan 4

Pre-Caspian Basin 5

Development of Export Infrastruxture 6

Devonian-Carboniferous SR charge Lower Permian salt and shale top seal Devonian-Carboniferous carbonate bioherm reservoirs Some Major fields of Kazakhstan: KashaganKashagan 7

KarachaganakKarachaganak 8 Karachaganak Estimated STOLIP 1,1 Billion. tonns Oil 1,4Trln. m Gas 3

: The Example of Deeply Buried Reef Bodies in the Precaspian Basin: 9

Model of Traps –Reservoirs and Types of Hydrocarbon Accumulations in Post-salt Sequence Precaspian Basin 10

Geological Section Across the Caspian Sea 11

Map of offshore blocks in the Kazakhstan part of Caspian Sea Caspian Sea 12

Chu – Sarysu Basin Geological Geophysical Cross-Section 13

Syr-Dariya Basin Geological Geophysical Cross-Section 14

CONCLUSION Main activities for further geological exploration in the Republic of Kazakhstan: 1.Exploration for deep-seated intra-basinal carbonate platforms (up to 7 km and more) in the Precaspian basin, subthrust structures in the edge zones and suture areas of heterochronous platforms, areas of Devonian large arched uplifts; 2.Investigation of areas adjacent to major and unique fields Tengiz, Kashagan and Karachaganak with the aim to discover their so -called “satellites”; 3.Prospecting for new oil-bearing fields in the post-salt sequence, particularly in the interdome zones and distant peripheries of salt domes, active study of the intermediate Permian- Triassic sequence and Paleozoic rocks in Ustyurt and Mangyshlak; 4.Stirring up of geological prospecting in the Paleozoic sequence in the South Torgai basin and Shu- Sarysu depression; 5.In view of the start of construction of the intra-Kazakhstan gas pipeline Bozoi-Shymkent, prospecting for gas reservoirs will be intensified in the areas of the East Aral, Syr-Darya, Shu-Sarysu basins adjacent to the gas pipeline route; 6.Planned and detailed studies of nonconventional for us sources of hydrocarbon accumulation such as kirs, bituminous sands will start as well prospecting for hydrocarbons in shale rocks. 15

Thank you for your attention! 16