Kazakhstan’s national oil and gas company KazMunayGas (KMG) plans to develop artificial intelligence (AI)-powered digital twins for 12 oil fields by the end of 2028, using the technology to optimize extraction and improve operational efficiency. The project is expected to generate an estimated 326 billion tenge (about $722 million) in economic benefits.
The digital twins will combine data on geological formations, wells and production to identify development strategies that offer the best economic returns. By processing large volumes of field data, the AI system can generate recommendations in hours rather than the months traditionally required.
Optimizing production at mature fields
The technology is particularly relevant to mature oil fields, where extracting remaining reserves has become increasingly difficult. Digital twins are expected to accelerate technical assessments and help the company make decisions about future field development, potentially reducing the need for costly field experiments.
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KazMunayGas cited the Vostochny Moldabek field, operated by Embamunaigas, as an example. The system analyzed the reservoir’s geological and hydrodynamic model, assessed different development scenarios, identified areas with remaining reserves and helped improve operational efficiency. The company modeled 700 development scenarios for the field.
Monitoring wells in real time
When planning well operations, the digital twin ranks wells by their production potential, identifies candidates for geological and technical interventions, and recommends optimal operating conditions.
The digital production system can update well data every five minutes, allowing operators to detect deviations quickly. According to the company, the technology could reduce production losses by 5% and cut resource and labor costs by up to 15%.
The system is also designed to support maintenance planning, procurement, transportation and work authorization.
2.8 million tons in additional oil production
KMG aims to deploy digital twins at 12 of its key oil fields. The project is expected to generate an additional 2.8 million tons of oil and deliver an estimated economic benefit of 326 billion tenge.