French integrated oil and gas company Total, along with its partners, has approved the launch of phase 3 development of the onshore Dunga field in the Mangystau Region of western Kazakhstan.

Operated by Total, phase 3 of the field development includes adding wells to the existing infrastructure and upgrading the processing plant to increase its capacity by 10% to 20,000 barrels of oil per day by 2022.

The development project of Dunga field is expected to increase production by more than 70 million barrels of reserves.

In 1994, the Government of the Republic of Kazakhstan has signed a Production Sharing Agreement (PSA) for the field and recently extended it.

Total said that the field development project is possible by the Kazakhstan government’s approval for a 15-year extension of the PSA, which would expire in 2024.

Dunga phase 3 development will involve £239m investment

The third phase development of the field will involve an investment of $300m (£239m) investment and is expected to create more 400 direct jobs in the region during the peak of construction activity.

Total exploration & production president Arnaud Breuillac said: “This low-investment-cost-per-barrel development maximizes the field’s potential and extends plateau production. This new development phase, combined with the Dunga field license extension, helps unlock 70 million barrels of additional reserves, which represents a significant development for Kazakhstan.”

Along with the Oman Oil Company with 20% interest and Partex with 20%, Total operates the Dunga oil field holding remaining 60% stake.

Total has been operating in Kazakhstan since 1992, with approximately 380 employs. Along with Dunga project, it is also one of the main shareholders in the North Caspian Project consortium and in charge of the giant Kashagan field development with a 16.81% interest.

The company is planning to expand its distribution network in Central Asia for Total-branded lubricants, develop renewable energy projects through its subsidiary Total Eren, and provide industrial power storage solutions through its another subsidiary Saft.