Products and export routes

KPO extracts and processes stabilised and unstabilised liquid hydrocarbons, raw gas and fuel gas. The majority of hydrocarbons produced in the Karachaganak Field are exported to maximize net sales revenues.

In 2022, around 99.69 % of liquid production was sold as stabilised oil to the Western markets via the following routes:

• the Caspian Pipeline Consortium (CPC) pipeline,
• the Atyrau – Samara pipeline and further through the Transneft system.

The CPC pipeline delivers KPO oil to the Black Sea port of Novorossiysk (Yuzhnaya Ozereyevka), whereas Atyrau-Samara pipeline is used to deliver oil to Ust-Luga port in the Baltic Sea and to Novorossiysk Sheskharis on the Black Sea (see Fig. 4). The key marketing objective is to maximize oil export via CPC pipeline, which is the main export route with the highest netback cost. The Atyrau-Samara route is used as a backup in case of disruptions of the export through CPC.

In 2022, in view of certain macroeconomic and political conditions, KPO took all possible actions to comply with international sanctions.

In October 2022, KPO completed and successfully commissioned a project for KPO tie-in into the Kaztransoil pipeline system (KTO), which allows for the railway export of KPO oil. In November and December, KPO successfully transported 40 k tons of oil through KTO T.Kasymov Oil Pumping Station with subsequent transshipment to the CPC pipeline.

Fig. 4. KPO export routes

In 2022, KPO exported total of 10.2 mln tonnes of stabilised oil, out of which 9.94 mln tonnes were delivered through CPC. To maximize revenue, nearly 0.23 mln tonnes of oil were exported via the Atyrau-Samara pipeline. As part of maintenance at the Karachaganak Processing Complex during the reboilers’ washing, liquids were delivered to Condensate SC`s refinery.

The gas produced from the Karachaganak Field is:

• re-injected into the reservoir to maintain reservoir pressure,
• sold as raw gas to KazRosGas LLP under the long-term Gas Sales Agreement,
• sweetened (i.e. cleared from H₂S) to use for process needs of the field units, to generate electricity for KPO facilities including Gas Turbine Power Plant and for local power distribution companies.

In 2022, KPO sold 7.5 bln m³ of raw gas to KazRosGaz for processing at the Orenburg Gas Plant.

Operations and sales in 2022

In 2022, KPO produced 128.5 mln barrels of oil equivalent (BOE) in the form of stable and unstable liquids and gas. Gas production in 2022 reached 19 mln m³. In 2022, to maintain reservoir pressure, KPO re-injected ~ 11 bln m³ of gas into the reservoir, a volume equivalent to about 57.3 % of the total gas extracted.

Tab. 2. Production in 2022

Tab. 3. Sales in 2022

With regards to customer health and safety, we have had no significant incidents of non-compliance with regulations resulting in a fine, penalty or a warning in 2022.