EXPLORATION AND PRODUCTION
The Company performs a whole range of exploration activities in the South Turgai Basin, where substantial territories with prospective resources (with 2D and 3D seismic surveys and exploration drilling performed there), as well as at the fields prepared for development, are situated. Over the last years, the Company was able to increase the exploration works’ scope in the region, which contributed to the expansion of our resource base. 

One of the most successful achievements of 2010 was discovery of West Karabulak oil field, where commercial inflow of oil was received. In 2010 new deposits on developed Kumkol oil field were discovered and that indicates another successful year in the area of the resource base renewal. Over 2010, the total production volume of PetroKazakhstan Inc. (including 50% share in KazGerMunai and Turgai Petroleum JVs) was 6,048 million tons of crude. PKKR and Kolzhan account for 3,03 million tons (vs. 2,7 million tons planned), Turgai Petroleum – for 2,9 million tons (vs. 2,9 million tons planned), and KazGerMunai – for 3,1 million tons (vs. 3,1 million tons planned). Currently, a total of 16 oil fields are on PKKR’s balance, and average production volume of crude oil is 8,318 tons per day.

DOWNSTREAM
Oil refining volume amounted to 4,58 million tons (vs. 4,1 million tons planned), which considerably exceeded the previous year’s results, when 4 million tons were refined. In 2010 the quality of refined products manufactured by the Refinery was adjusted to comply with the EURO-2 Standard requirements. The results of the second post-certification inspection audit confirmed the compliance of environmental management system functioning at the Refinery with ISO 14001:2004 international standard.

MARKETING AND TRANSPORTATION
The Marketing and Transportation Unit closed the year with good results. Last year, 2,8 million tons of crude were exported, and 1,6 million tons of crude oil were supplied to the domestic market.  In 2010, the Company supplied 730,000 tons of oil products (diesel fuel and gasoline) as per social programs, which was 5 times larger than in 2009. The completion of ‘Zhossaly Terminal Reconstruction and KAM Oil Pipeline Reversal’ project became one of the most important events of Y2010. This project was implemented to accept Siberian oil and pump it further via KAM pipeline to transport it via  Kumkol – Atassu – Alashankou itinerary. Pipeline reversal will ensure the year-round KAM pipeline and Zhossaly Terminal operation.

In 2010, the Company expanded its leased RTC fleet by 50 gas RTCs, thus increasing the PKKR rolling stock up to 2240 units. Contracts with repair and maintenance companies were signed to ensure the timely maintenance of RTCs along their itineraries, as a result they are always in the turn-around and repair time was reduced from 6-7 days to 1-2 days.

CORPORATE SOCIAL RESPONSIBILITY
In 2010, the Group allocated significant amounts to support many non-commercial projects implemented in the regions of its operations. Thus, PKKR allocated over 3,8 million US dollars, and PKOP around 2 million US dollars, accordingly.

PetroKazakhstan pays a lot of attention to formation of young professionals. Over five years of the PetroKazakhstan Scholarship Program existence, 68 youngsters from Kyzylorda Oblast got an opportunity to study in the best universities of Kazakhstan, China, and Canada. In 2010, the Company granted 10 more scholarships to Kyzylorda residents for their study in the China University of Petroleum, Beijing.

In 2010 to the Company published the first corporate book on the social projects it implements – “PetroKazakhstan: Philosophy of Business”. The book received positive feedback from the Minister of Labor and Social Protection, CEOs of major companies, and leading media.

All 2010 obligations on social responsibility were timely and fully executed by the Company.