AKSAI, West Kazakhstan Oblast, 3 February, 2016 – Karachaganak Petroleum Operating B.V. (KPO) has announced the performance results for the year of 2015.
In 2015, KPO has produced 141.7 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, 8. 652 billion cubic metres of sour dry gas were re-injected to maintain the reservoir pressure, a volume equivalent to approximately 47.4 per cent of the total gas produced.
KPO General Director, Renato Maroli, said: “As of today, KPO Partners have invested approximately $20.6 billion into development of the field, whilst direct payments to the RoK budget have totalled $13.6 billion”.
“From the very beginning of the Karachaganak project, KPO has been supported by the Republic of Kazakhstan. Our close cooperation with the RoK Government and the PSA LLP Authority has enabled KPO to align its production plans with the Government’s objectives and to ensure that Karachaganak’s subsoil riches are caringly managed while contributing to the balanced development of the region’s economy”, said Renato Maroli.
“Overall, in 2015, KPO maintained high performance results in spite of the difficulties currently faced by most oil and gas companies.
“Developing such large scale projects as Karachaganak amidst the current market conditions is a challenging task. Despite the fall in commodity prices and large capital expenditures, in 2015 KPO was able to successfully carry out the planned in-field projects in strict accordance with their set objectives”, added Renato Maroli.
In particular, in 2015 KPO continued the implementation of a number of production upgrade initiatives. These include projects at the Karachaganak Processing Complex and Unit 2.
In addition, in 2015, the Karachaganak Partners and KazRosGas, LLP, a joint venture between Gazprom, OSC and National Company KazMunaiGaz, JSC, agreed the extension of the existing Karachaganak Gas Sales Agreement (GSA) until January 2038.
“The extension of the GSA is an important step in the continued development of the Karachaganak field, which will result in supply of additional 120-135 billion cubic meters of gas to OrenburgGasProm till the end of the contract period. It secures enhanced value for the Karachaganak Partners and the Republic of Kazakhstan”, said Renato Maroli.
In 2015 KPO remained committed to the highest standards of occupational health, safety and environmental performance. KPO actively promotes a culture where the ownership of safety is shared across the company and its contractors. As a result, the Total Recordable Injuries Frequency at KPO in 2015 made up 0.30 per million man hours worked which is far lower than the year target of 0.36.
As KPO General Director, Renato Maroli, noted, “KPO production activities are carried out based on the principle of sustainable development while adhering to the highest standards of environmental protection”. The gas utilisation rate at Karachaganak in 2015 totalled 99.85%, which is a world-class achievement. As of today, the KPO’s investments into environmental activities have exceeded $309.7 million.
KPO has been actively promoting the development of local suppliers of goods and services. A large number of projects aimed at building local manufacturing capacities have been implemented.
“KPO and the contracting companies fully support the RoK Government’s plans to create production and service clusters, as well as joint ventures relating to the Karachaganak field development”, said Renato Maroli.
KPO is one of the first companies in Kazakhstan to successfully introduce the Local Content Development Programme, which has allowed involving more than three thousand Kazakhstani companies into the development of Karachaganak. To-date, these companies have received orders from KPO for $5.4 billion.
In 2015 the proportion of local content in KPO contracts for the supply of goods and services reached 48.78 per cent or $581.1 million in monetary terms.
As the largest employer in the WKO region, KPO provides a major contribution in terms of thousands of long-term local jobs with competitive salaries. In 2015, the local personnel of KPO made up 96 per cent of total engineering and professional positions and 79 per cent of all managerial positions.
KPO also implements a significant number of large social infrastructure projects in West Kazakhstan Oblast. For this purpose, KPO annually allocates $20 million. In addition, $10 million per annum were allocated for implementation of a number of projects in Burlin district of WKO during 2014-2016. Overall, as of today, KPO has invested $300 million into the social infrastructure development in the region.
“I hope that our continuous efforts to enhance operation and management efficiency will allow KPO to maintain a leading position among the RoK oil and gas industry. Looking forward, further improvement of our performance will be our key priority for the next period”, said Renato Maroli.
“We shall also strive to foster our long-standing trusting relationships with the RoK authorities ased on our common desire to generate maximum value and the pursuit of sustainable development goals to the benefit of the West Kazakhstan residents and the country as a whole”, added Renato Maroli.
For more information please contact:
Sergei Pushkarev: <link>PushkS@kpo.kz
Gulnara Sharibayeva: <link>ShariG@kpo.kz
KPO Corporate Affairs Department
