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Ways digitalization can help the country fight illegal oil trade

by May 18, 2018 Health

The Ministry of Energy of the Republic of Kazakhstan plans to install monitoring and metering sensors in large oil fields.

The Digital Kazakhstan program includes a project called Oil Metering Program. The very idea of this project is the fight against the illegal turnover of oil and oil products. This system is essentially a number of control devices installed throughout the cycle, from extraction and down to distribution at gas stations. Appropriate legal norms already exist; the issue today is the installation of such monitoring and metering devices in the fields. If the deposits are already smart by that time, this issue will be very easy to solve – it will simply be necessary to integrate them into a single system, – Deputy Energy Minister Bolat Akchulakov said at the Astana Economic Forum.

He stressed that illegal oil trade is a big loss of budget revenue.

This is a crime, and there is no place for it, especially in such a sensitive area of the energy sector. That’s why we put this program at the forefront, so that the entire oil and gas industry is made absolutely transparent. Another advantage of this system also lies in the fact that all subsoil users and the state will operate within one data system, � B. Akchulakov said.

He also talked about the benefits that this step will bring directly to business.

First of all, in addition to reducing costs, optimizing costs, reducing some repair periods, the concept of so-called unscheduled inspections is eliminated, because the State Revenue Committee will also be in this database. And everyone will operate with the same data, � B. Akchulakov said.

At the same time, the Deputy Minister noted that there is no talk of total digitalization of all deposits.

Unfortunately, in Kazakhstan, Russia and Azerbaijan there are a lot of deposits, which have, relatively speaking, a couple of years to live. And such solutions that cost money, perhaps, should not be applied to them, � he explained.

Source: Government of the Republic of Kazakhstan