The share of Kazakhstani content in the procurement of goods, works and services for the first half of 2019 exceeded 56% – KPO

Karachaganak Petroleum Operating B. V. (KPO) presented its operational performance results for the first half of 2019.

According to the company, since the beginning of this year, KPO has produced more than 73 million barrels of oil equivalent in the form of stabilized and unstabilized liquid hydrocarbons, crude gas for export and fuel gas. In addition, more than 4.5 billion cubic meters of crude gas was injected into the reservoir, which accounted for 46.3% of the total volume of gas produced.

As noted by KPO General Director Edwin Blom, “2019 marked the 40thanniversary of the Karachaganak field, the opening of which was the most important event in the history of the oil and gas industry of Kazakhstan.”

According to him, “since the start of the Final Production Sharing Agreement, USD 25 billion have been invested in the development of the field.”

In May 2019, the partner companies signed an agreement on the approval of the 4th Injection Compressor Project.

“The project is aimed to extend the plateau of production of liquid hydrocarbons, which, in turn, will significantly increase profits for the Republic of Kazakhstan and the company’s partners,” said Edwin Blom.

The 4thInjection Compressor Project is one of three projects for the extension of the production plateau, which also include the KPC Gas Debottlenecking Project and the 5thTrunkline Project, which are under implementation. 

According to the company, today the gas utilization rate in Karachaganak is 99.94%.  In total, since 1998, KPO has allocated USD 389 million for the implementation of environmental measures.

During the first half of 2019, KPO signed 8 contracts for the supply of new domestic goods from those previously purchased abroad.

“During the reporting period, the share of local content in the supply of goods, works and services on the Karachaganak project exceeded 56% or more than USD 255 million in monetary terms,” reports KPO.

Now about 4,000 Kazakhstani employees work in KPO. The share of local specialists is 95% of the total number of engineers and technicians and 78% of senior managers.

The volume of investments aimed to develop social infrastructure of the West Kazakhstan region exceeded USD 375 million.