Karachaganak Introduces New Nature Protection Technologies
Maxim Isaev,
RusEnergy
Petroleum companies in Kazakhstan are gradually changing their attitude toward environmental problems. One of the largest operators, Karachaganak Petroleum Operating B.V., has allocated more than $100 million to environmental projects. Nurzhan Kamalov, KPO Corporate Affairs & HSE Controller, outlines the results of his company's environmental policy.
RusEnergy: How do you personally assess KPO's nature conservation operations?
Nurzhan Kamalov: KPO intends to obtain international level indicators in the area of nature protection through the introduction of the international experience of the four core companies, including the BG Group, Eni, Chevron and LUKOIL.
Over the last few years, the company has invested more than $100 million for implementing projects that contribute to the improvement of the enterprise's nature conservation operations and to contribute toward the fulfillment of projects according to the FPSA requirements (Final Production Sharing Agreement) and the legislation of the Republic of Kazakhstan.
At present, the most modern technologies are being implemented at Karachaganak, which afford the company to decrease the impact on the environment significantly. The equipment at the KPC (Karachaganak Processing Complex) and Unit-2 (the gas and liquids separation and re-injection plant) are unique.
RE: How do government agencies evaluate KPO's ecological protection activities?
Kamalov: The ecological conservation agencies and national legislation are changing and being amended; and new legislation is being added ever year to enhance the current system. KPO is attempting to fulfill all of its requirements fully and be stay in pace with the times.
The company is in the limelight with regular audits and inspections on the part of the state agencies. The company' nature conservation practices are entirely transparent. In addition, the International Finance Corporation of the World Bank undertakes annual inspections at our company. According to the conclusions of the auditors, the ecological conservation operations correspond entirely with all international standards.
RE: Petroleum companies must continue monitoring the atmosphere and water. How does KPO implement these obligations?
Kamalov: Qualified services carry out the monitoring of the quality of the atmosphere at the Karachaganak field and its suburbs each day. An independent contractor known as Gidromet Ltd. checks the air quality annually, analyzing approximately 110 thousand samples of the atmosphere and takes air samples several times every 24 hour period.
In addition, KPO runs its own mobile ecological monitoring station for taking regular tests on air samples. The results of the analysis demonstrate that the concentration of polluting substances in the air over the field and in neighboring regions is lower than the maximum permissible concentrations.
In terms of water, KPO constantly monitors the water quality, both on the territory of Karachaganak and outside of the field. Extracted wastewaters undergo separation from hydrocarbons and the production wastes that appear during the oil stabilisation processes, and the salts extracted from the oil are pumped back into the deep subsoil at the field using special pumping equipment, for storing in two special (underground - KNL) chambers.
The purified rain and wastewaters are reutilized repeatedly in these processes where possible. The wastewaters are purified and are then used for fire-fighting systems and forest irrigation. The remainder of the rain and wastewaters at the Karachaganak field are then released into special hydro-isolation storage ponds following the mechanical and biological purification process, which prevent the pollution of the ground waters. The leakage of production waters to natural water channels is eliminated completely.
RE: Are the monitoring results made available to the public, specifically to people living near the Karachaganak field?
Kamalov: The monitoring results are published in all local newspapers, which are distributed afterwards among all rural settlements that are situated near the Karachaganak field. Moreover, in 2005, KPO founded consulting groups in these settlements in cooperation with the Burlinsk regional authorities. The main purpose of these groups is to inform the rural population on the condition of exploration at the Karachaganak field and KPO's operations, including production, the social sphere, ecological and production safety procurement, emergency reaction plans and sanitary - epidemiological safety.
During the monthly sessions with the consulting groups, representatives of the companies, the Akimat and the public share information and exchange opinions on KPO's participation in the social economic and cultural life of the region. The present project provides us with the possibility to openly discuss issues related to the Karachaganak field exploration and to find mutually satisfying resolutions. The local authorities organize all of the meetings.
RE: Ecological scientists and other experts have connected the reduction in and extinction of various species that dwell in the sea and nearby with the petroleum operations being conducted by the production companies on the Caspian. The Kazakhstani press has many times published cases where Caspian swans and seals met their deaths, and often, the oil producers were placed under suspicion. What type of condition is the flora and fauna at the Karachaganak field in?
Kamalov: KPO is striving to conserve biodiversity at Karachaganak, in addition to improving the natural habitat for the purpose of sustaining the natural regional biodiversity.
All of the equipment that has been set up at new production facilities meets international ecological standards. For example, the power generation stations at the Karachaganak complex are equipped with a modern dry burning system, thanks to which, this station has been called one of the most ecologically safe in the world.
With the assistance of highly qualified and independent specialists, we constantly conduct monitoring of the condition of flora and fauna at Karachaganak. Public organizations participate in these operations. In addition, KPO holds regular Environmental Impact Assessments, during which, they conduct research on biological diversity, where it is expected to implement the next project.
RE: How do state agencies, particularly the Environmental Ministry, evaluate KPO's execution of its responsibilities in terms of ecological operations at the field?
Kamalov: Last year, the Environmental Protection Ministry became acquainted with the operation of the Karachaganak Processing Complex and that of the waste recycling complex at this location. The ministry acknowledged that KPO is a serious company that allocates significant amounts of funds to its natural conservation goals. At the same time, during this visit, a memorandum of mutual understanding was signed between the ministry of Environment Protection, the WKO authorities and KPO.
In accordance with the Memorandum, KPO will implement a set of additional projects for the purpose attaining a further consolidation of the ecological balance at the field, and will allocate an additional $30 million to carry out ecological projects.
RE: There are also inhabited settlements on the Russian side of the border, not far from Karachaganak. Are you cooperating with Russian ecological agencies?
Kamalov: Yes, and very intensely. For example, at the beginning of March, representatives from KPO, the West Kazakhstan Oblast Department of Nature Conservation and from the Orenburg State Inspection on Nature Conservation discussed the process toward the fulfillment of the joint protocol as signed during February 2005 by the ecological and executive agencies of Orenburg, the West Kazakhstan Oblast and KPO.
The Orenburg population had noted that the fulfillment of the protocol agreements has allowed for decreasing the level of ecological impact, which has been confirmed by the results of the regional air monitoring as well as a significant decrease in complaints on the part of the local population.
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Karachaganak at a Glance
The Karachaganak oil and gas condensate field in the West Kazakhstan Oblast is one of the world's largest. It occupies an area of 280 km2, and the field's reserves are evaluated at 1.2 bln t of oil and condensate, and over 1.35 trillion cubic meters of gas.
Discovered in 1979, the field began delivering small amounts of gas and condensate to the Orenburg processing plant in Russia via pipeline in 1985.
Today, KPO is carrying out its operations at the field according to a 40-year Production Sharing Agreement signed by the partners of the international consortium with the Kazakh government on November 1997.
At present, Karachaganak is one of the largest investment projects in Kazakhstan, with over $4 billon in foreign investment. The consortium also includes BG Group, Italy's Eni, (32.5% each), the Chevron (20%) and Russia's LUKOIL (15%).
