KPO reports 2020 performance results

AKSAI, West Kazakhstan Oblast, 23 February 2021 – Karachaganak Petroleum Operating B.V. (KPO) has announced its performance results for 2020.

Over the last year KPO produced 10.9 million tons of stable liquid hydrocarbons, which is KPO’s historical maximum.  Total hydrocarbon production, including raw gas export and fuel gas production, was 143.9 million barrels of oil equivalent. 

In addition, 10.4 billion cubic metres of raw gas were re-injected into the reservoir, representing 51.3 per cent of total gas produced (with additional 2 gas injection wells within 5th gas injection trunk line project).

Despite the downturn experienced by the global oil and gas industry exacerbated by the COVID-19 pandemic, KPO production facilities operated in accordance with safety requirements and 2020 production targets.  KPO has reached an important milestone in hydrocarbon liquid processing.

Edwin Blom, KPO General Director, noted: “Last year we were ahead of the budget on our liquids, and set new records in the Annual Liquids production, Gas Injection and the Total Gas Production volumes. So, overall, with the structured approach that we have been applying, we’ve achieved some truly remarkable results in production”.

As of today, KPO Partners have invested more than $27 billion into the development of the Karachaganak field.

In December 2020, the Karachaganak Partners signed an agreement sanctioning the Karachaganak Expansion Project-1A (‘’KEP1A Project’’).

Commenting on the event, Edwin Blom, KPO General Director, pointed out that “the sanctioning of the KEP1A Project is a new important milestone in the continued development of the Karachaganak field, building further on the achievements of Karachaganak Gas Debottlenecking Project (KGDBN) and the Fourth Injection Compressor (4IC) Project. By the way, both projects have progressed significantly during 2020 despite the pandemic and the associated travel restrictions and supply delays. Aimed at extending the duration of the liquid production plateau, the KEP1A Project, which comprises of the 5th Injection Compressor and other associated facilities, will make a significant contribution”.

“Despite the challenges brought by coronavirus infection, KPO remains committed to maintain safe operation of the giant Karachaganak field for continued generation of revenue for the Republic”. Keeping the field running means thousands of jobs and welfare of households across the region and beyond”, added Edwin Blom.

KPO continues to conduct full-scale monitoring of environmental components, including air, surface water, subsurface water and soil monitoring, as well as emissions monitoring (air emissions, waste water discharges). Particular focus is paid to the introduction of "green" technologies, waste management and measures aimed at reduction of air emissions. Since 1998, KPO has invested $432 million into various environmental activities. KPO has achieved gas utilisation rate of 99.92 per cent which is also a world class achievement. Following the results of Certification Audit, KPO's environmental and energy management systems were recognized as effective and maintained in compliance with international standards ISO 14001: 2015 and ISO 50001:2018.

Health and safety of employees and the local community continues to be one of the key priorities for KPO. During the existing tough conditions, KPO intends to preserve jobs and to maintain safe working conditions for both company and contractor personnel. In 2020, Kazakhstan employees accounted for 97 per cent of professional staff / qualified workers, and 83 per cent of the “management” category. Overall, since signing the FPSA, more than $227 million has been invested in the training and development of national personnel.

KPO has been actively contributing to the involvement of Kazakhstani suppliers and manufacturers of goods in the development of the Karachaganak field. Intensive work towards implementation of this program has already yielded tangible results. In 2020, the share of Local content in KPO contracts for the supply of goods, works and services accounted for 59 per cent.

Meanwhile, over the last few years KPO has made significant changes in the nature of procurement of goods from simple products to complex high-technology materials and equipment.

KPO also implements its major projects aimed at developing the social infrastructure of the West Kazakhstan oblast. To date, KPO investment in the development of social infrastructure in West Kazakhstan region has totalled $427 million.

In 2020, KPO provided significant support to public health facilities of the region in its fight against COVID-19 by procuring essential equipment and materials including specialized equipment for ICUs.

“The current situation, obviously, is an unprecedented challenge for all of us and for the global economy”, Edwin Blom noted. “KPO is undertaking its best efforts to protect the health and safety of its employees and community. We will continue strengthening our long-lasting relations and collaboration with the authorities of the Republic of Kazakhstan in pursuit of our common goal to create maximum value and sustainable development for the residents of the West Kazakhstan region and the Republic of Kazakhstan”.

Corporate Affairs Department