The year 2020 is coming to the end, many of us probably remember it for a long time. This year we have witnessed many amazing events, some of which have rapidly changed our lives.
We present a selection of the brightest nominations of the year.
“CHALLENGE OF THE YEAR”
The first reports of outbreaks of the COVID-19 pandemic appeared in China on December 31, 2019. Already on January 13, 2020, the virus began to spread outside China.
The scale of the pandemic has impacted almost everyone’s live, from the mandatory wearing of a mask in public places to changing business formats.
The pandemic could be called as “challenge of the year”, since due to the shutdown of enterprises in China, and then throughout the world, the demand for oil and oil products has dropped significantly.
For example, ExxonMobil has already reported a 30% cut in capital spending in 2020 (from $ 33 billion to $ 23 billion). BP’s annual capital expenditures are 25% less compared to 2019. Rosneft plans to implement an annual investment program in the amount of 750 billion rubles, which is about 20% less than the same indicator of 2019. Gazprom Neft also estimated a possible decrease in the volume of investment by 20%.
In Kazakhstan, although there were no mass layoffs of personnel, many O&G companies have transferred their employees to a remote format. Only the most necessary production personnel remained at work on a rotational basis.
It was a 61-year-old woman who flew from Wuhan on January 8th to Bangkok, Thailand. By January 18, the number of cases outside of China increased to three cases (two in Thailand, one in Japan).
“EVENT OF THE YEAR”
Russia and OPEC could not agree on a reduction in oil production and began a price war. This, in turn, led to a collapse in oil prices on the world market.
As a result of this confrontation, the price of WTI crude oil fell 20% and Brent crude fell 30%. It was the biggest fall since the Gulf War. The price war is one of the main reasons for the ongoing global stock market crash.
Thus, the Russian ruble fell 7% to a 4-year minimum against the US dollar. Over the year, the tenge rate fell to 419 KZT per dollar. Oil prices have increased the pressure on the national currency.
At the same time, analysts predict a corridor of 420-440 KZT for 2021. In case of accelerated end of pandemic and sharp recovery of the world economy, KZT may strengthen to 400-410 rate against the US dollar. In the event of a new outbreak of a pandemic, the global economic recovery may slow down or stop at all. In this scenario, the dollar may rise to 440-460 KZT.
“EVENT OF THE YEAR”
Tengizchevroil held perhaps the largest event in a year, in which tens of thousands of people were involved.
At the beginning of the pandemic, about 45 thousand people were working in the Future Expansion Project (FGP) at the Tengiz field. However, due to the pandemic, work slowed down in the spring – from March to May, the company demobilized about 27,000 employees who were not directly involved in the production.
From September 1, Tengizchevroil began re-mobilizing personnel. The difficult demobilization process of such a big scale was quite successful.
FGP is the next large-scale expansion of the production capacity of the Tengiz field. Implementation of this project will increase production by 12 million tons of oil per year. The total cost of the project is $ 45.2 billion….
“OIL MAN OF THE YEAR”
NCOC Managing Director Richard Howe can be named as Oilman of the Year for his skillful management, which prevented the mass spread of coronavirus at the NCOC facilities.
Oil production was carried out according to the plan previously adopted by the company, despite the fact that in 2020 Kazakhstani oil and gas industry was challenged by a pandemic. It was extremely difficult for any business to continue operating in the face of the pandemic. However, thanks to the well-coordinated work at the company, there were only 150 cases of COVID-19. For a long time, NCOC was the only major oil company without a confirmed case of COVID-19.
“SUCCESS OF THE YEAR”
The signed Agreement of resolving the dispute over the Karachaganak project is considered a success of the year. The agreement was signed by the Government of Kazakhstan represented by the Ministry of Energy, the Ministry of Finance of the Republic of Kazakhstan, and the Authority – PSA LLP, as well as shareholders represented by Eni, Shell, Chevron, Lukoil. Thus, PSA LLP performed an excellent job for a sake of Kazakhstan.
As part of the Agreement, the consortium made a payment to the Republic of Kazakhstan in the amount of US $ 1 billion 305 million. The parties also agreed on the final production sharing methodology, as a result of which Kazakhstan will receive an additional $ 600 million by 2037 at an oil price of $ 40-50 per barrel.
“CHOICE OF THE YEAR”
The choice of the year is the previously published rating of Petrocouncil “TOP-50 young leaders of O&G in Kazakhstan under the age of 35” and “TOP-50 women-leaders of O&G in Kazakhstan”.
In the first rating, we presented a new pool of young energetic leaders who make a significant contribution to the development of the domestic O&G industry. All of them are of the same age as independent Kazakhstan. The leader of the rating was Vice Minister of Energy of Kazakhstan Zhanat Zhakhmetova.
And the second rating included women working in various O&G companies and organizations in Kazakhstan, occupying leadership positions in various areas. The rating was topped by the general director of TCO Eimear Bonner.
“Socially Responsible Leader OF THE YEAR”
Under the leadership of Eimear Bonner, TCO provided tremendous support not only to its contractors at the FGP but also to the Atyrau region in the health sector during the pandemic in 2020.
TCO purchased over 648,000 items of personal protective equipment; 56 oxygen concentrators; 252 units of medical equipment; 20 ventilators; two COVID tests for the diagnosis of coronavirus infection; medical vehicles, pyrometers, thermal imagers and disinfectors, reanimobiles and ambulances, flights for the students and the delivery of medicines to the Atyrau region.
The company also implemented the Igilik social and infrastructure program as well as the Social Investment Program. These programs are aimed at the construction of social infrastructure facilities.
OPENING OF THE YEAR
As part of the development of local content, for the first time for 26 years of operation in Kazakhstan, Tenzgizchevroil published a procurement plan for 2021.
Thanks to the efforts of the local content department as well as the procurement department Tengizchevroil made an important step on the path to transparency and fair market development.
Demonstration of the procurement plan to the general public will certainly stimulate the development of domestic business in the country. The procurement plan will provide local companies with opportunities and information.