The Karachaganak oil and gas field is one of the largest and most complex to operate in Kazakhstan. Karachaganak means huge investments, record levels of production, innovative technologies, thousands of jobs directly or indirectly related to the field, as well as production activities at world-standard level. The development is carried out by “Karachaganak Petroleum Operating B.V.” consortium, with the amount of investment into the field development exceeding $ 17.6 billion, whilst the amount of direct payments into the RoK budget has reached $ 10.3 billion.
In 2013 KPO produced some 136.03 million barrels of stabilized and un-stabilized liquid hydrocarbons, gas and fuel gas in oil equivalent. The volume of sour gas re-injection to maintain reservoir pressure was 8.57 billion cubic meters, which is equivalent to about 49% of the total volume of produced gas.
Since commencement of the Karachaganak field development, KPO has accepted an active position in terms of local content development, aimed at import substitution and enhancement of goods, services and works volume of local production in the total volume of purchases. According to RoK legislation requirements, in 2010 KPO has introduced a single methodology for calculating local content in its procurement system and provides relevant reports to the Ministry of Oil and Gas on a quarterly basis. In addition, to ensure transparency of procurement, since 2012 KPO has been publishing annual, mid- and long-term procurement plans for goods, services and works on its website.
In 2013, the local content share in KPO contracts for supply of goods, works and services reached 50.15%, which amounted to $461.1 million in monetary terms. According to the results of 2013, KPO has concluded 1.642 contracts and amendments thereto to the amount over $ 1.018 billion.
As a result of KPO’s nationalization program, the Kazakhstani company employees today fill 100% of first-line positions, 94% of technical personnel and skilled technicians, and 68% of all management positions. During 2013, about 4 thousand local employees were enrolled in industrial safety, technical competence, management development programs as well as personal and language skills training courses.
Due to national currency rate recalculation, the company's management decided to increase the wages for all KPO’s local employees by 10% since March 01, 2014. As the largest employer in the region, KPO carries out its long-term social obligations in respect of more than 3.000 Kazakhstani employees, including the provision of competitive terms of remuneration.
For today, KPO has invested more than $ 178 million in training and professional development of local specialists, using international experience, their own training resources and cooperation with well-known Kazakhstani and foreign educational institutions.
In its production activities, KPO aims at providing effective use of Karachaganak capacity in order to achieve maximum social and economic benefits for the local community and the Republic of Kazakhstan as a whole. Annually, the company implements a large number of major projects in the sphere of social infrastructure development in the West Kazakhstan oblast. The project list and priorities are defined by the WKO administration. The construction of healthcare, education, culture and sports facilities is carried out in the framework of this program; moreover, all projects are implemented with the involvement of Kazakhstani contractors only. At present, the total amount of KPO’s investment into social infrastructure development in WKO amounted $ 270.97 million.
The company's efforts in the development of the region’s social infrastructure have been recognized at the National Competition for Social Responsibility “Paryz”, where KPO has won several prestigious awards, including the 2013 Silver Paryz Award in the Best Social Project category.
The Karachaganak field development in Kazakhstan implies more than just generating income and taxes on oil and gas production. This is also the establishment of long-term, strong partnerships for economic development. While supporting sustainable development, partnership based on social responsibility, local capacity improvement, KPO continues to strive for new industrial achievements for the benefit of the Republic of Kazakhstan and the Karachaganak project partners.
