INDUSTRIAL WATER COMPLEX COMES ON STREAM IN KARACHAGANAK, 26.06.2003

AKSAI, Western Kazakhstan Oblast, 26 June 2003 - Karachaganak Integrated Organisation (KIO) has announced that it has successfully put into operation a $ 4.1 million complex which will ensure continuous supply of industrial water to the field production facilities.

The industrial water complex, which has been built on a site close to the Konchubai dam, includes a state-of-the art pumping station, water treatment system and water storage tank.

KIO has also built a 500-metre asphalt road to provide access to the new complex, installed dual 6-kV power transmission line to provide power to the site and planted 380 trees in the area around the facility. Additional tree planting will take place later in the season.

Robert Schleicher, Area Manager for Infield Facilities, said: "The new complex for industrial water supply has undergone the state check and meets all the architectural, sanitary and environmental requirements".

He added: "Environmental considerations played a key role during the design and approval process to ensure the ecological diversity and nature of the area was maintained".

The construction of the complex was completed without any lost time incidents, to a tight schedule and within budget thanks to the effort of main contractor IGS-Sicim and its various Kazakh subcontractors.

This project also involved the use of an unusual method of construction for the water storage tank, which has a capacity of some 2,000 cubic metres. Instead of the tank being built on site by welding together hundreds of metal sheets, it was built in the factory, rolled up, shipped to site and then unrolled again before final welding in place.

"It was the first time we had used this method on the project and it saved us a great deal of time and effort", said Robert Schleicher.

"It was also the first for KIO that the contractor was given responsibility for design, permitting, procurement, construction, commissioning and a period of operational running to prove all the system and equipment functions as specified," he added.