Activities

2017

Transition of the North Khairkeldy deposit to the stage of industrial production with the right to export up to 80% of crude oil.

Transition of the Southwest Khairkeldy deposit to the trial operation phase and the extension for 2 years of the exploration and evaluation period for the Taur North-West and Zheltai.

2016

The point of oil preparation at Southern Khairkeldy field with a capacity of 200 thousand tons of oil was put into operation.

2015

The transition of the Khairkeldy field to the stage of industrial production with the right to export up to 80% of crude oil.

Transition of the Southern Khairkeldy field to the stage of industrial production with the right to export up to 80% of crude oil.

The point of delivery of oil on the Taur field with the capacity of 150 thousand tons of oil was put into operation.

2014

Transition of the Taur deposit to the stage of industrial production with the right to export up to 65% of crude oil.

2006

A contract was signed for the exploration and production of oil and gas.

2005

Establishment of the Company.

General information

  • The company was established on April 25, 2005, in the form of a limited liability partnership in accordance with the laws of the Republic of Kazakhstan.

  • The Company operates in accordance with the subsoil use contract No. 2231 dated December 15, 2006 for exploration, production of oil and gas in the blocks XXIX-38-A, B, C, D, E, F located in the Syrdarya region of the Kyzylorda and Karaganda regions.

Inventory

  • The total explored and approved oil reserves within the blocks XXIX-38-A, B, C, D, E, F are 21.1 million tons (160.5 million barrels).
  • The recoverable oil reserves are 7 million tons (53.1 million barrels).
  • On an ongoing basis, an independent assessment of reserves and contingent resources is being carried out in accordance with the SPE / WPC / AAPG / (SPE-PRMS) Oil Inventory Management System by major international appraisers such as McDaniel & Associates Consultants Ltd. (evaluation as of June 30, 2017), Miller and Lents Ltd. (evaluation as of July 2, 2015), Gaffney, Cline & Associates (evaluation as of December 31, 2013).

The volume of crude oil production

  • Cumulative production of crude oil from the beginning of the operation on the contracted territory as of January 1, 2018 amounted to 791,138 tons (5.8 million barrels).

  • In 2017, the volume of crude oil production amounted to 200,868 tons or 1.47 million barrels (2016: 208.7 thousand tons or 1.5 million barrels).

Implementation

  • In 2017, the Company sold 197.8 thousand tons or 1.444 million barrels of crude oil (2016: 204.8 thousand tons or 1.5 million barrels).

Financial indicators

The data was provided on the basis of an independent financial audit from PricewaterhouseCoopers LLP

  • Revenues from the sale of crude oil for 2017 amounted to 16,1 billion tenge (2016: 12.1 billion tenge).
  • EBITDA margin for 2017 was 50% (2016: 48%).

Innovations

SSBSLU (Small-size block separating-loading unit) “RPE" OZNA-ENGINEERING"

Since 2016, the SSBSLU facility has been commissioned and is currently operating at the SPF Taur and the OHF Southern Khairkeldy. Reception, preparation and shipment of oil is carried out at this facility according to the 1-group.

Efficiency:

  • Block execution and compactness.
  • Automation of the oil treatment process.
  • A complete cycle of oil preparation to 1-group and further shipment.

SSE (simultaneous separate exploitation of two productive horizons) PremiumOilService LLP

A new technology was introduced in order to increase the efficiency of mechanized production (BHP+ ESP). This technology was introduced in 2017 at the well of Souther Khairkeldy-15.

Efficiency:

  • Separate lift of formation fluids.
  • Shifting the drilling grid by connecting two horizons in one wellbore.

  • Increasing the profitability of the well due to the second horizon.
  • Separate measurement and recording when several horizons and layers are being exploited in the wellbore.
  • Operation of two objects with different reservoir properties at different modes of fluid extraction.

ICDO (Installation of continuous desalination of oil)
"ALLIANCE NEFTEGAZ TECHNOLOGY“ LLC

In 2017, the above mentioned equipment was installedat the OHF "South Khairkeldy" site.

Efficiency:

  • for intensive mixing of various liquids and introduction of fresh water into a flow mixer-averager, where drops of fresh water and drops of mineralized emulsified water are mixed into the flow of crude oil. A distinctive feature of the device is a high dispersion of fresh water supplied for desalination, which significantly increases the probability of "meeting" drops of fresh and under the productwater. The effective section of the mixer-averager, which is made of stainless steels, allows to intensify the processes of mixing and coalescence.

Capstone C-800 and S-600 micro-gas turbine installations

In the period of 2014-2017, two Capstone S-800 and C-600 micro-gas turbine power plants (800 and 600 kVA respectively), that use innovative technologies of Capstone Turbine Corporation, , were purchased and put into operation.

Efficiency:

A unique design feature of the engine is the use of air bearings, which achieves a record speed of rotation of the shaft - 96,000 rpm. This innovation makes it possible to abandon the use of oil, high consumption of which for other types of equipment constitutes a significant part of the operating costs.

Low operating temperatures reduce the level of nitrogen oxides emissions, so that CO and NOx emissions do not exceed 9 ppm, which makes it possible to classify micro turbines as one of the most environmentally friendly sources of energy generation.

Geological and hydrodynamic 3D modeling of deposits

Three-dimensional geological and hydrodynamic modeling is a powerful device for solving geological problems in the oil and gas industry. This method of reservoir management allows the petroleum geologist to understand the structure of hydrocarbon deposits and predict their behavior using various development scenarios.

Forecasting reservoir behavior is used in planning, operation and in the diagnostics of reservoir work at all stages of operation in the field.

Drilling of sidetracks

Based on previously drilled wells, the Company plans to carry out works based on the construction of a small-diameter sidetrack, which will increase production and the recovery rate of oil from the reservoirs.

Drilling sidetracks is a promising technology for extracting residual oil in CIS countries. This method has a number of advantages over the construction of a new well.

The implementation of this technology allows:

  • increase the final oil recovery factor at any stage of operation and, therefore, improve the efficiency of investment;

  • involve previously flooded deposits in operation;

  • reduce the expenditure of financial and material resources;
  • reduce the impact on the environment, and therefore significantly reduce the cost of environmental activities;
  • increase the investment attractiveness of operation on the field at any stage.