August 10, 2015
KPO has provided the results of business performance for the first half year

For the first six months, Karachaganak Petroleum Operating B.V. Company has produced 70.8 million barrels in oil equivalent of stabilized and nonstabilized liquid hydrocarbons, gas and fuel gas. Thus, gas re-injection volume for maintenance of reservoir pressure is of 4.34 billion m3, which corresponds approximately to 47.5% of total volume of produced gas.

“Productive partnership with the Republic of Kazakhstan and authority of PSA LLP guarantees abidance of performance plans of KPO with state tasks, which is fundamental for assiduous exploration of natural reserves of the country and provides steady advantages in Karachaganak development for National Economics”, press-office of the Company quotes the speech of Renato Maroli, CEO of KPO.

“For the day, the partners of Karachaganak Project have invested about 19.8 billion USD in the field development, and the amount of direct payments to the budget of the Republic of Kazakhstan was 13 billion USD” —the CEO of KPO mentioned.

“KPO is a company of international standard that is why one of our major priorities is still to achieve high performance results related to industrial security, health and environmental protection” — Renato Maroli added.

Gas disposal figure in Karachaganak, according to the results of the first six months, has amounted to 99.9%, which is a world class achievement. Total sum of KPO investments to environmental measures since 1998 has run at 300 million USD.

Recently KPO has finished economical and technical assessment of “Karachaganak Extension Project”. The KEP strategy on local content is targeted to localization of engineering, goods, works and services required by the Project. The Project will provide new jobs creation for local citizens, and passing them best practices. In general, this strategy will contribute in long-term development of Kazakhstani enterprises, and also in implementation of new technologies by creating new co-enterprises of interested Kazakhstani with Western Companies.

As Maroli has remarked, “In January 2015, General Karachaganak Project Management Committee has adopted Resolution related to the Contract on implementing the conceptual engineering within the KEP Project”.

“At the moment, necessary work within made deals is carried out. KPO has sent invitations for tender participation to several international contractors and their local partners. It is expected that conceptual design contract on KEP Project will be signed in the end of 2015, which will provide execution of activities in accordance with strategic stages of Project execution” — Maroli added.

“Project execution in the field of Plateau Extension is also carried out according to the plans: gathering facilities extension project on the field is at stage of construction, while the Karachaganak Treatment Combine Projects are at stage of conceptual design” — said the Company’s CEO.

KPO actively promotes development of local supply sources of goods and services, and executes range of projects to support local production, — is mentioned in the speech. KPO is one of first enterprises in Kazakhstan, where Kazakhstani content development program was successfully implemented. It has allowed to involve more than 3000 Kazakhstani enterprises in Karachaganak field development, which in total have received orders from KPO for more than 4 billion USD.

For the present day, the Kazakhstani content in KPO contracts for supply of goods, works and services has reached 48.3%, which in monetary equivalent is about 278 million USD — it is emphasized in the report.

Being West-Kazakhstan region’s largest employer, KPO provides long-term jobs and competitive salary for several thousands of local specialists. At the moment 3948 Kazakhstani employees work for KPO. According to the results of the first half of 2015, the percent of local employees has reached 96% of total number of engineers and 78% of all management.

KPO executes many large projects, destined for the development of social infrastructure of West-Kazakhstan region. Every year 20 million USD are given for their execution. With that, only Kazakhstani contractors are involved in the construction. For the present day, total volume of KPO investments to development of social infrastructure of the region is about 265 million USD.

KPO adheres to the principles of steady development in all fields of its activity. Recently KPO has published “Report on steady development of Karachaganak in 2014”, revealing key performance figures and major achievements of the Company in ecological, economic and social fields of activity. Authenticity of information, published in this report has obtained an independent confirmation by EY Company.