ECONOMIC
ENVIRONMENT
OVERVIEW
KPO is the Operator of the Karachaganak oil and gas condensate field (KOGCF) which is located in North-West Qazaqstan and covers an area of over 280 km2. Karachaganak is a unique field with complex operating conditions, not in the least due to extreme continental climate. The field is some 1,600 m thick and very complex and unique with its top at a depth of around 3,500 m. The extracted hydrocarbons contain up to 4.5 % of highly toxic and corrosive hydrogen sulphide (H2S), as well as carbon dioxide (CO2) which can be highly corrosive in certain conditions.
According to the latest Reserves Re-Determination Report for the Karachaganak field (accepted by the RoQ State Reserves Committee (GKZ) on 17.11.2017), it is estimated that the Karachaganak Field contains some 13.6 billion barrels of liquids and 59.4 trillion cubic feet of gas, of which approximately 14.8 % of liquids and 14 % of gas have been recovered as of 2022.
The Company invests heavily into the application of leading-edge technologies to maximize sustainable economic value and minimise environmental impact.
The total investment in the development of the Karachaganak oil & gas condensate field since the signing of the FPSA in 1997 to 31.12.2022 has totalled over USD 28.4 bln. As of end 2022, 4,053 people worked in the KPO organisation.
KPO facilities
Hydrocarbon production and processing occurs at three major interconnected units: Karachaganak Processing Complex (KPC), Unit 2 and Unit 3. Approximately 2,000 kilometres of pipelines make up the infield system linking the major facilities and allowing efficient flows of production from the wells and among the units. Amongst the facilities, there is an Early Oil Production Satellite (EOPS) and Eco Centre. An overall view of the facilities is graphically presented on the Figure 3.
The transportation system operated by KPO includes the main export route for stabilised liquid hydrocarbons – Karachaganak – Atyrau Transportation System (KATS) with two pumping stations: one at KPC and the other at Bolshoi Chagan, and a receiving and storage facility in KPO Terminal in Atyrau. The other export route is the Karachaganak – Orenburg Transportation System (KOTS), which is used by KPO for transporting gas to Orenburg Gas Plant in the Russian Federation.
As of end 2022, 117 producing and 20 re-injection wells were online at Karachaganak, from a total well stock of 471 wells. In 2022, KPO well stock was increased by three new wells compared to the previous year: 471 wells in 2022 and 468 wells in 2021. According to the drilling plan for 2022, it was planned to drill four wells. In fact, three wells were drilled, one well was started drilling in 2021 and completed in 2022. Another two wells were started to be drilled in 2022 and completed in 2023.