January 21, 2005


Komsomolskaya Pravda

By Vladimir Tretiyakov


The extraction company explained its success by an aspiration to reach world standards, and the introduction of new technologies and competency of personnel.


When in November of 1997, the Karachaganak Petroleum Operating partners BG Group, Eni, ChevronTexaco and LUKoil signed a Final Production Sharing Agreement with the government of Kazakhstan, they assumed the obligation to build new operational facilities, which will provide for the outlet of gas condensate to world markets. Last year this condition was met, and supply abroad of Karachaganak oil began. The KPO HSE and Corporate Affairs Controller Nurzhan Kamalov discussed the next stage in the development of the consortium:


- Entering the world market was a serious event for the company. How did we manage to achieve this? What did we need to do to have the consortium Karachaganak Petroleum Operating (KPO) begin to export its products?


- Since the beginning of project implementation, the new Karachaganak complex for processing hydrocarbons, Unit-2, and the 635-km export pipeline were launched. It connected the deposit with the Caspian Pipeline Consortium (CPC) and sent Karachaganak condensate to the world markets. In order to develop the deposit more effectively, the newest technology for gas re-injection was commissioned for increasing the reservoir pressure.


The overhaul of over 100 wells was made, the power plant of 120 MW capacity was built, and the existing operational facilities were repaired and modernised.


Over USD 4 B was invested into the deposit.

- How safe is your deposit today? The fact is that many companies ignore ecological requirements for the sake of development.


The companies operating the deposit, including the BG Group, Eni, ChevronTexaco, LUKOIL have great experience not only in oil and gas production, but also in applying the newest technologies for reducing the negative impact on the environment. For example, at the gas preparation facilities, sulphur hydrogen detection systems were installed. These passed independent technical experts’ examination and are capable of detecting the presence of pollutants in any concentration. In order to control the air, soil and water safety in the working area, monitoring is conducted regularly. Annually, 110,000 samples of atmosphere are analyzed alone. Currently, a geographic information system is being introduced at the deposit, including a wide cartographic database on using high-resolution satellite pictures and an ecological monitoring database. This system is one of the latest achievements in science. Today, the results on the part of the studies testify to the fact that the condition of the environment is stable and meets established norms. Only over the last few years, KPO’s investments into environmental measures totaled USD 100 MM.


- What is the secret of such successful operations and rapid development?

- There are several factors, which include the support of our shareholders, their international experience, accurate and well-coordinated work on the part of KPO staff, and close interaction with the authorised body KMG, the government, local and oblast organisations, and of course, our labour resources play a great role. As part of the Nationalisation Programme, in order to develop employees’ managerial skills, shareholders are implementing a programme for training Kazakhstani personnel in international management. These measures will allow for a reduction in the number of foreign managers, and their substitution by local employees. The best Kazakhstani and foreign trainers conduct the training.


However, the consortium conducts support and training of not only its own professionals, but also at contractor organisations. The main variable the KPO successes is people.