The Governor of the West Kazakhstan Region took part in the meeting of the Joint Committee for the Management of the Karachaganak project in Nur-Sultan

The Governor of the West Kazakhstan Region took part in the meeting of the Joint Committee for the Management of the Karachaganak project in Nur-Sultan

Governor of the region Gali Iskaliyev took part in a meeting of the SKU Karachaganak project within the framework of a working trip to the city of Nur-Sultan.

Last year, Karachaganak Petroleum Operating B. V. (KPO) produced 10.9 million tons of stable liquid hydrocarbons, which is a historic high for KPO. The total volume of hydrocarbons, including the production of crude gas for export and refined gas for use as fuel, amounted to 143.9 million barrels of oil equivalent. In addition, 10.4 billion cubic meters of crude gas were pumped into the reservoir, which accounted for 51.3% of the total volume of its production.

Despite the downturn in the global oil and gas industry, exacerbated by the coronavirus pandemic, KPO's production facilities were operated in strict compliance with all safety requirements and production plans for 2020.

In December 2020, the shareholders of the Karachaganak Project signed an agreement to authorize the Karachaganak-1A Expansion Project (PRK1A Project).

The approval of the PRK1A project is one of the key stages in the development of the Karachaganak field. Its implementation will be a logical continuation of the work within the framework of the current Project of lifting production restrictions on KPC gas (PSPOG) and the Project of the 4th gas Re-injection compressor. By the way, both projects have made great progress in their implementation over the past year, despite the pandemic and the difficulties associated with it in crossing borders and delivering supplies from abroad. The goal of the PRK1A Project is to extend the production of liquid hydrocarbons. It provides for the construction of the 5th gas re-injection compressor and other related facilities.

During the meeting of the SCU, the work done on the project implemented by KPO to remove production restrictions on gas production (SPOG) at the Karachaganak field was noted.</p> <p style="text-align: justify;">The project will allow the processing of additional volumes of crude gas, which will be used for re-injection into the reservoir to maximize the level of production of liquid hydrocarbons. It will also serve as a resource for the implementation of subsequent investment projects in the field.

The main achievements of the SPOG project include the completion of construction and installation works in December last year, as well as the beginning of a number of works on preparation for commissioning. The act of delivery and acceptance of the object is scheduled for May 2021.

The Karachaganak development plan also provides for the implementation of the project of the 4th gas re-injection compressor (4KOZG). Today, according to this project, all the devices required for the technological process have been delivered and installed on the foundations, and the construction of the main pipe overpass has been completed. The installation of the pipe binding, laying and connecting the cable is carried out.

KPO conducts active and comprehensive work to involve Kazakhstani suppliers and producers in the development of the Karachaganak field. In 2020, KPO paid $ 319 million to WKO enterprises for the supply of goods, works and services, of which the share of local content was $ 226 million (71%). KPO paid $ 86 million to WKO enterprises for the supply of goods, of which $ 42 million was paid to WKO producers, which amounted to $ 28 million (32%). The total value of KPO's contracts with the producers of the West Kazakhstan Region is $ 98 million.

Under the MS development program in 2020, 21 contracts were awarded for the localization of production of 10 categories of goods for a total of $ 4.8 million. 18 tenders were initiated for works and services within the framework of partnerships in accordance with the requirements of the KPO in the amount of $ 1.1 billion: 10 contracts were awarded and 8 tenders are ongoing. Also, 35 tenders were initiated exclusively among Kazakhstani suppliers ($399 million).)

KPO also implements major projects aimed at developing the social infrastructure of the West Kazakhstan region. Within the framework of social and investment projects of KPO, 18 objects are being implemented.

The health and safety of employees and the local population is one of the key priorities in the company's work. Despite the difficulties of the current situation, KPO intends to continue to maintain jobs, providing a safe working environment, both for its employees and for the staff of contracting companies. Measures to prevent the spread of COVID-19 have been implemented. In addition, KPO, the Ministry of Health of the Republic of Kazakhstan and the Akimat of the West Kazakhstan Region are discussing a possible vaccination program for KPO personnel and contractors.

In 2020, the share of Kazakhstani employees accounted for 97% of the total number of specialists, skilled workers, and 83% of senior management. In general, since the signing of the PSA, more than 227 million US dollars have been allocated for the training and development of Kazakhstani specialists.