A quarter of a century ago, the Final Production Sharing Agreement was signed between Karachaganak Petroleum Operating b.v. and the Republic of Kazakhstan. Since then, a new era began in the history of the Karachaganak field, development of which is of greatest importance for the economy of the West Kazakhstan Oblast and the entire country.
The anniversary event held in Aksai on September 9 brought together the management and employees of KPO, representatives of the West Kazakhstan Oblast and Burlin Akimat, the PSA Authority, management of partner companies and leadership of major industry associations. Today, the development of one of the world’s largest fields — Karachaganak — is associated with large-scale investments and the transfer to the Republic of Kazakhstan of modern technologies and best practices accumulated by KPO parent companies: Eni, Shell, Chevron, Lukoil and KazMunaiGas.
Welcoming the participants of the event Giancarlo Ruiu, KPO General Director, said that the 25th Anniversary of the FPSA is an important milestone for the Karachaganak Partners, the Republic of Kazakhstan and the West Kazakhstan Oblast. KPO is proud of the results achieved with the support of the RoK Ministry of Energy, the Akimat of the WKO and Burlin district, and the PSA Authority. All KPO achievements are closely associated to the development and success of Kazakhstan. Karachaganak is now one of the largest producing fields in the country. It accounts for about 36.6% of the total gas production and about 14.25 of the total liquids production. During the development of the field, the latest technologies were implemented, which brought significant benefits to the economy of the Republic of Kazakhstan and the local community.
A film was shown to the participants of the celebration about the history, present and future prospects of Karachaganak. The signing of the Final Agreement in 1997 signalled a start for the continued development of the Karachaganak project with the influx of large- scale investments, resources and the most advanced world’s expertise. Today, the development of the field has become one of the main factors contributing to the growth of the regional economy.
The great importance of Karachaganak for Kazakhstan was emphasised by Gali Iskaliev, the Akim of the West Kazakhstan Oblast. According to him, thanks to the Agreement signed 25 years ago, the region, which is in the past used to be considered an agrarian-industrial, began to develop its oil and gas potential. KPO is the largest employer and taxpayer in WKO. Eighteen thousand people are involved in the Karachaganak project. Fifteen thousand of them are residents of the West Kazakhstan Oblast. The annual payments to the state budget and the National Fund of Kazakhstan make up about two billion dollars. The head of the region highlighted the importance of KPO work on the local content development. The share of the local content since the signing of the Agreement has reached 9.06 billion dollars. At the same time, the structure of local goods procurement has changed from simple products to complex and high-tech types of materials and equipment.
Dias Tashimov, Director of KAZENERGY’s Department for Oil and Gas Industry Development, congratulated the celebration participants on the anniversary. He noted that the signing of the FPSA laid a solid foundation for mutually beneficial cooperation between the Government of the Republic of Kazakhstan and the world’s leading oil and gas companies.
Rashid Zhaksylykov, Chairman of the Presidium of the Association of Oilfield Service Companies of Kazakhstan, welcoming the participants called the 25th FPSA Anniversary a very special milestone. He wished KPO to reach new heights and awarded General Director Giancarlo Ruiu with the Asyl Enbek Award for his huge contribution to the development of the oilfield service industry in Kazakhstan.
Speeches continued one after another, the speakers congratulated the participants of the celebration on a remarkable date. The best professionals and employees working at Karachaganak were awarded with medals, honorary certificates and letters of gratitude.
The festive ambiance accompanied the events dedicated to Aksai Town Day. According to the established tradition, KPO also took an active part in those. A gala concert with the participation of Kazakh pop stars sponsored by KPO was a good gift for the residents. Also, on the eve of the Day of Kazakhstan Oil & Gas Industry Workers, KPO representatives and Trade Union leaders visited the Burlin Local History Museum. They donated to the museum a portrait of Sukhan Kamalov, the pioneer of Karachaganak, a known Kazakh scientist, professor, corresponding member of the RoK National Academy of Sciences, academician of the RoK Engineering Academy. Now his portrait has taken a rightful place in the museum, which also received memorable souvenirs manufactured for the occasion of the 25th FPSA Anniversary.
The Final Production Sharing Agreement has been concluded until 2038, which enables a lot of opportunities still to be realised going ahead. Staying fully committed to environment protection, social responsibility and sustainability, KPO will continue to strive for new production achievements for the benefit the Republic of Kazakhstan and the Karachaganak Partners.
