Products and export routes / GRI 2-6 /

KPO produces liquid hydrocarbons, raw gas and fuel gas.

To maximize net revenue, in 2024, 99 % of liquid production was exported as stabilised oil to the world markets via the following routes:

• the Caspian Pipeline Consortium (CPC) pipeline,
• the Atyrau – Samara pipeline and further through the Transneft system.

The CPC pipeline delivers KPO oil to CPC Marine Terminal in the Black Sea (Yuzhnaya Ozereyevka), whereas Atyrau-Samara pipeline was used in 2024 to deliver oil to Adamova Zastava with final Buyer`s destination to Germany (Schwedt Refinery) and to Ust-Luga port in the Baltic Sea (refer to Fig.5).

CPC pipeline is the main KPO export route; the Atyrau-Samara route to Adamova Zastava was activated and maximized in 2024 under prevailing political and economic situation since its netback appeared to be higher than CPC. The Atyrau-Samara route is also normally used as a backup in case of planned or unplanned CPC disruptions.

In 2024, KPO continued to take actions to comply with international sanctions caused by geopolitical conditions.

Oil export activities in 2024

In 2024, KPO exported a total historical record of 10.93 mln tonnes of oil, of which:

• 9.81 mln tonnes were delivered through CPC.
• a historical record of 1.11 mln tonnes was exported via Atyrau-Samara route with a split:
  • 1.1 mln tonnes – via Druzhba pipeline to Adamova Zastava.
  • 0.018 mln tonnes were lifted at the port of Ust-Luga in the Baltic Sea.

Unstabilised gas condensate deliveries

In January 2024 KPO delivered 11.55 kt of unstabilised gas condensate to the Refinery of Condensate JSC as part of commissioning work on new wells.

Gas production and utilization

Gas produced at the Karachaganak Field is utilized for:

• Re-injection into the reservoir to maintain reservoir pressure.
• Sales as raw gas to KazRosGas LLP (KRG) under the long-term Gas Sales and Purchase Contract.
• Sweetening (removing H2S) to use in various field processes, generate electricity at the Gas Turbine Power Plant for KPO facilities, and to supply electricity to the local power supply – company to meet FPSA obligations.
• KPO successfully achieved its initial target in 2024 by delivering 8.7 bcma of raw gas to KRG for processing at the Orenburg Gas Processing Plant (OGP). This achievement demonstrates strong performance despite technical obstacles from OGP side during certain months of 2024.

In 2024, KPO continued to supply fuel gas for electricity generation to Batys Energoresursy LLP (BER). However, as a result of regulatory changes in Kazakhstan’s Law on Electric Power, which transferred electricity supply responsibilities to regional power grid companies, BER ceased operations as of January 1, 2025, following the expiration of its license.

KPO remains dedicated to providing stable fuel gas supplies and supporting local communities.

In light of these changes, KPO has aligned its fuel gas sales strategy with the reformed electricity market. Starting in 2025, fuel gas will be sold to “Zapadno-Kazakhstanskaya regionalnaya elektrosetevaya kompaniya” LLP for electricity generation at the KPC Power Plant (at no cost).

KPO remains dedicated to providing stable fuel gas supplies and supporting local communities. As part of its ongoing social responsibility efforts, KPO continues to provide free power generation capacities to regional grids, helping to meet the energy needs of local populations in West Kazakhstan Oblast. These actions reflect KPO’s commitment to promoting energy accessibility and sustainability within the region.

In 2024, KPO produced 143.3 mln barrels of oil equivalent (BOE) in the form of stable and unstable liquids and gas. Gas production in 2024 reached 23.9 bln m³ . In 2024, to maintain reservoir pressure, KPO re-injected ~ 14.2 bln m³ of gas into the reservoir, a volume equivalent to about 59.4 % of the total gas extracted.

In 2024, with regards to customer health and safety, KPO has had no significant incidents of non-compliance with regulations, resulting in a fine, penalty or a warning. / GRI 416-1 /