AKSAI, West Kazakhstan Oblast, 7 August, 2015 - Karachaganak Petroleum Operating B.V. (KPO) has announced half year performance results.

Over this period, KPO has produced 70.8 million barrels of oil equivalent in the form of stable and unstable liquids, sour gas for export, and sweet gas for use as fuel.  In addition, 4.34 billion cubic metres of sour dry gas were re-injected to maintain the reservoir pressure, a volume equivalent to approximately 47.5 per cent of the total gas produced.

KPO General Director, Renato Maroli, said: “Our successful partnership with the Republic and the PSA Authority has enabled KPO to align our business with the Government’s objectives to ensure that the development of the Republic’s resources provides sustainable advantages for the country as a whole”.

“As of today, KPO Partners have invested approximately $19.8 billion into developing the field, whilst direct payments to the RoK budget have totalled $13 billion”.

“As a world-class operation, KPO remains committed to achieving the highest standards of occupational health, safety and environmental performance”, added Renato Maroli.

Over the first half of 2015 KPO has achieved a world-class gas utilisation rate of 99.9 per cent.  On the whole, since 1998, KPO has invested nearly $300 million into environmental protection measures.

KPO has recently finalised technical and economic assessments of Karachaganak Expansion Project, (KEP).  The KEP local content strategy is focused on the localization of engineering activities, goods, works and services.  This project will drive the creation of new jobs and skills development.  In addition, it will contribute to long-term development of the local supply chain coupled with the transfer of technologies through establishment of partnership between interested local and international companies.

“A Joint Operating Committee Resolution on Front End Engineering Design (FEED) Award was agreed in January 2015 and KPO continues to work towards meeting that agreement.  KPO has issued an Invitation to Tender to several international contractors and their local partners.    It is expected that the FEED Contract will be awarded in the end of 2015 in order to achieve the strategic milestones of the project development”, said Renato Maroli.

“Plateau Extension Projects are progressing according to plans, with gathering network expansion works in construction phase and Karachaganak Processing Complex expansion projects in FEED phase”, added Renato Maroli.

KPO actively supports the development of Kazakh companies and implements a large number of projects designed to support local industry.  KPO is one of the first companies in Kazakhstan to successfully introduce a local content programme.  Its implementation has allowed the involvement of more than three thousand Kazakh companies into the development of Karachaganak.  These companies have received orders from KPO for over $4 billion.

As of today, the proportion of local content in KPO contracts for the supply of goods and services reached 48.3 per cent or nearly $278 million in monetary terms.

As the largest employer in the WKO region, KPO provides a major contribution in terms of long-term local jobs with competitive salaries.  KPO currently employs 3,948 local specialists. According to the half year results, the local personnel of KPO made up 96 per cent of total engineering and professional positions and 78 per cent of all managerial positions.

KPO implements a significant number of large social infrastructure projects in West Kazakhstan Oblast.  For this purpose, KPO annually allocates $20 million.  All construction activities are implemented by Kazakh contractors.  As of today, KPO has invested nearly $265 million into the social infrastructure development in the region.

Sustainable development is embedded into all aspects of KPO’s activities.  Recently KPO has issued the Sustainability Report for 2014 that focused on company’s key performance indicators and major achievements in environmental, economic and social areas.  The Report has been independently verified by EY.

For more information please contact:

Sergei Pushkarev: <link>PushkS@kpo.kz

Gulnara Sharibayeva: <link>ShariG@kpo.kz

KPO Corporate Affairs Department