2012 Performance Results
UPSTREAM
In 2012 PetroKazakhstan Inc produced 5.7324 million tons of crude oil, including 50% shares in its JVs – Kazgermunai and Turgai-Petroleum. This includes 3.1007 million tons as actual production by PKKR, Kolzhan and PKVI, 1.0695 million tons as 50% of Turgai-Petroleum production and 1.562 million tons as 50% of Kazgermunai production. 79 new wells, including 57 producing and 22 appraisal wells, were put into operation in 2012. Under License 951-D the 2D seismic surveys were 200 km and 3D seismic surveys were 80 sq. km. Under Contracts 1057 the 3D seismic surveys were 100 sq. km. Under Contract 1928 the 2D seismic survey was 500 km and 3D seismic survey was 64 sq. km.
34 exploratory wells were drilled in 2012 with the exploratory success ratio of 70%. The crude oil reserve increment was 3,674 thousand tons which is mainly due to exploration at West Tuzkol, Belkudyk and Doshan fields. Gas deposits were discovered in Akzhar and Ketekazgen structures.
DOWNSTREAM
In 2012 the company processed 4,753 thousand tons of crude oil, which is 149 thousand tons higher than in 2011.
A record high-octane gasoline yield was achieved in 2012 (72% of the total gasoline pool), which is 9% or 125.6 thousand tons higher than in 2011. The refinery increased the production of jet fuel, vacuum gas oil, household liquefied gases and high-octane gasolines. The yield of light oil products also increased.
During 2012 refinery experts made extensive efforts to improve the quality of products. The preparation for the refinery modernization program to cover the construction of 7 new process units and the reconstruction of 3 existing process units is ongoing. The purpose of the Refinery Modernization and Reconstruction Project is to start making oil products to Euro-4 and Euro-5 standards and to increase the conversion depth and the yield of light oil products.
MARKETING AND TRANSPORTATION
In conditions when the situation in the oil product market was permanently changing during the year, PetroKazakhstan was able to perform its obligations in supplying fuels to consumers. To stabilize the RK fuel market and to support the status of a socially responsible company, the supply of 1,012.9 thousand tons of oil products (diesel fuel, gasoline, fuel oil and jet fuel) was secured under social programs.
Thanks to a well functioning rail tank car turnover system the company was able to reduce transportation costs and retained the position of one of the leading companies among Kazakhstani cargo shippers.
HSE
All operational standards in the area of safety, health and environmental protection assurance accepted by PetroKazakhstan are implemented to the full extent. In the past year PKOP LLP successfully passed a verification audit for compliance of its HSE Management System with ISO 14001 international standard and a re-certification for compliance with OHSAS 18001 international standard. In 2012 PKKR JSC successfully passed a certification for compliance with OHSAS 18001 and planned to implement ISO 14001 standard by the year end. Besides, PKOSI and PKOP passed the HSE management system audit by CNODC.
CORPORATE SOCIAL RESPONSIBILITY
All social responsibility commitments undertaken in 2012 are implemented to the full extent and as scheduled. In addition to traditional sponsorship projects and the support for sponsored organizations, in 2012 PKOP and PKKR companies signed Memorandums of Cooperation with Akimats of South Kazakhstan and Kyzylorda Oblasts. USD 1 million was allocated by PKOP and USD 2.5 million was allocated by PKKR respectively for the implementation of social projects within the framework of the Memorandums signed.
To ensure good quality of leisure-time activities for employees in KAM camp, a sports complex named after Kazhymukhan Munaitpassov was commissioned at Aryskum field in 2012 with sections in 9 sports.
On December 5, 2012, as part of the Year of Culture in Almaty and the celebration of the Independence Day of the Republic of Kazakhstan, PetroKazakhstan company in cooperation with the Medeu District Akimat of Almaty and the Central State Museum of the Republic of Kazakhstan arranged the exhibition “the Sun-Blessed Land” displaying works of art of outstanding artists of Kazakhstan and Central Asia.
PetroKazakhstan was the general sponsor for the book of Irina Serkebayeva “Bibigul Tulegenova: To Love, To Hope and To Believe” with the singer’s recollections about her life and career, the presentation of which was held on December 19, 2012 in Almaty in the Kazakh State Academic Opera and Ballet Theater named after Abay.
ACHIEVEMENTS AND AWARDS
The Head of the Republic of Kazakhstan, N.A. Nazarbayev, highly appreciated the merits of PKI President and PKOP First Vice President Mr. Wei Yuxiang and of PKI Vice President for Strategic Communications Mr. Bakhytzhan Issengaliyev by presenting them with the Order “Dostyk” of the 2nd degree and the “Kurmet” Order respectively. Such high-level recognition of the contribution into the Republic development is not only an honor, but also demonstrates the recognition by the Republic leadership of the role that PetroKazakhstan company plays in the development of regions of its operations and of the Republic in general.
**”Dostyk” Order is awarded to citizens for fruitful work in preserving mutual assent in the society, and merits in strengthening of peace, friendship and cooperation among nations.
**”Kurmet” Order is awarded to citizens for merits in the development of economy, social sphere, science, culture, and education, and for exemplary service at state agencies and active public activity.