Working trip to West Kazakhstan region: Bakytzhan Sagintayev visits major industrial facilities
Today, on behalf of the Head of the State, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev arrived in West Kazakhstan region on a working visit to get acquainted with the implementation of the President’s Addresses Third Modernization of Kazakhstan: Global Competitiveness, New Development Opportunities in the Conditions of the Fourth Industrial Revolution, Five social initiatives, as well as state and sectoral programs.
The first place of visit was one of the largest deposits in the world – the Karachaganak oil and gas condensate field, which covers an area of more than 280 square kilometers. Production performance makes up about 45% of the total gas production in the Republic and about 16% of the total production of liquid hydrocarbons, and the total estimated reserves exceed 2.4 billion barrels of condensate and 16 trillion cubic feet of gas.
During the visit, Prime Minister B. Sagintayev got acquainted with the technological process of hydrocarbon production. The main results of the work of the enterprise were elaborated upon by the CEO of Karachaganak Petroleum Operating BV Edwin Blom. Karachaganak contains 12 billion barrels of liquid hydrocarbons and 57 trillion cubic feet of gas, of which about 11% has been mined to date. E. Blom reported that in the 21st year of development of Karachaganak, production performance amounted to 42% of the total in the Republic, and this indicates that there are great prospects for further development of the field.
According to him, KPO consistently demonstrates high production rates, with special focus given to issues of industrial safety, labor protection and the environment.
Our environmental indicators are at the global level. Very strict environmental safety standards are maintained not only in production, but also on a larger scale. For the second year we have been organizing an environmental forum in Uralsk, to which we are inviting not only KPO staff, but also contractors to discuss the improvement of environmental safety. Because, even if today the indicators are good, maybe tomorrow they will not be good enough. The environment is changing, – Edwin Blom said.
Bakytzhan Sagintayev was also briefed in detail about the operation of the facilities for expanding and prolonging the exploration of the Karachaganak field. Today, oil is mainly exported via the CPC pipeline leading to the port of Southern Ozereevka on the Black Sea. Another route for the sale of oil is through the Atyrau-Samara pipeline, which connects to Transneft’s transport system, which provides access to the port of Primorsk and a number of European destinations.
Speaking about technological modernization of the enterprise and introduction of Industry 4.0 elements, the CEO of KPO informed that to date the shareholders of the consortium have invested over $ 23 billion in the development of Karachaganak. The development of the field involves the most advanced technologies. This allows combining skilled subsoil use with obtaining the maximum economic return. At the same time, the management of KPO intends to continue investing in the maintenance of technological equipment.
Currently, the plans for digitalization, to which the President of the country has called, are very enthusiastic. We see a number of initiatives that cover security, environmental responsibility, human capital, etc. KPO is already a high-tech enterprise, but digitalization involves the most intensively developing innovation, so we need to constantly expand local staff, � E. Blom said, stressing that support of local commodity producers is also one of KPO’s key priorities.
In addition, KPO supplies electricity for the needs of the population of the West Kazakhstan region. For these purposes, there is a gas turbine power station, the main purpose of which is to provide own electrical energy for the entire production complex of the field and nearby settlements.
Prime Minister Bakytzhan Sagintayev got acquainted with the continuation of the technological chain of oil and gas processing at the plant of JSC Condensate. Here, production of K5 class gasoline was launched during a teleconference with the participation of the Head of State.
Chairman of the Board of Directors of Condensate JSC V. Dzhunusov told about the modernization of the plant, and also informed about the measures taken to automate and digitize production. In 2017, the plant was modernized, increasing the capacity of the enterprise to 850 thousand tonnes per year. In addition, a plant for hydrotreatment of diesel fuel to the ecological class K5 was launched in June 2018. In general, more than $ 200 million was invested in the reconstruction of the plant.
This modernization allowed to cover the deficit of motor fuels in the domestic market of the country, and also increased income to the budget with regards to excises and other types of tax payments. In addition, the plant provides a decent income for more than 1000 residents of the region (employees of the enterprise and their families), creating highly-qualified jobs. Since the launch of new gasoline units, over 80 000 tonnes of gasoline of the highest ecological class K5 have been sold. About 1 billion tenge of excises were paid to the region’s budget during this period.
The sale of high-octane gasoline and diesel fuel produced at the plant is carried out not only in the West Kazakhstan region, but also in nearby areas. In addition, half of the output is exported abroad. For example, vacuum gas oil is exported to Belarus, tar sales are focused on Russia.
The West Kazakhstan region is of great industrial importance for the country. The industry of the region is represented by enterprises of oil and gas production, refining of petroleum products, machine building, metallurgy, defense, mining, clothing and food industries. The volume of industrial production in January-June 2018 amounted to 1184.6 billion tenge. The index of physical volume amounted to 98.6% of the corresponding period of 2017. Within the framework of IIDSP and the Industrialization Map, 7 projects worth 7 billion tenge are being implemented in 2018, creating 262 jobs.
During the working visit, Prime Minister B. Sagintayev will also visit a number of industrial and social infrastructure facilities, he will hold a meeting with the region’s active core and business representatives to discuss project management issues.
In particular, the construction of the highway Uralsk – Taskala – the Russian border Ozinki and Kaztalovka – Zhanibek – Bokey Orda will be inspected. These routes improve transport communication between the district centers and the regional center. Here, the Prime Minister will discuss the implementation of the state program Nurly Zhol with representatives of Kaztalovsky, Zhanibek and Bokeyorda districts.
Further, the Prime Minister will travel to Zachagansk to inspect the construction of residential houses under the program Nurly Zher and to familiarize with the implementation of the 7-20-25 program.
In the specialized public service center B. Sagintayev will get acquainted with the process of automation of available state services and implementation of regional projects of the state program Digital Kazakhstan.
The Prime Minister’s working visit will be concluded with a meeting with the active core and representatives of business in the regional Akimat, where the issues of project management will be discussed, as well as the results of work for 6 months of the year, and plans for further solving the tasks given in the President’s Addresses Third Modernization of Kazakhstan : Global Competitiveness, New Development Opportunities in the Conditions of the Fourth Industrial Revolution, Five Social Initiatives.
Recall, Bakytzhan Sagintayev is making a series of working trips to the regions on behalf of the Head of State. Earlier he made trips to Atyrau, Karaganda, Kostanay, Kyzylorda, Mangystau, South Kazakhstan, Akmola, Aktobe regions.
Source: Government of the Republic of Kazakhstan