UPSTREAM
In 2015, PetroKazakhstan Inc. produced 4,386mln. tons of oil, including 50% shares in JVs – Kazgermunai and Turgai-Petroleum. This includes 2,442 mln. tons of cumulative actual production of PKKR, Kolzhan and PKVI for 2015, and 2,585 mln. tons of planned oil production for 2015, 50% of Turgai-Petroleum’s production – 0,444 mln. tons, and 50% of Kazgermunai JV’s production – 1,500 mln. tons.
In 2015, PKKR, Kolzhan and PKVI drilled 68 new wells, including 25 producing and 43 exploration and appraisal wells, and Kazgermunai drilled 33 producing wells. According to the report of the independent auditor McDaniels, the increment in P1 oil reserves was 5,473 mln. barrels in PKI group in general.
DOWNSTREAM
In 2015, PKOP processed 4,493mln. tons of crude oil, with oil refining depth of 75% and the light oil product yield of 56.7%.
PKOP continues to implement its Shymkent Refinery Modernization and Upgrade Project. In 2015, The company received positive reports from the state expert review of a feasibility study and design-and-estimate documentation of Shymkent Refinery Modernization and Upgrade Project that is implemented in the framework of 2015-2019 State Program of Accelerated Industrial and Innovative Development of the Republic of Kazakhstan. A distillate hydrotreatment unit upgrade project and a new sulphur plant project were completed during Stage-1 in 2015. Stage-2 envisages the construction of new and upgrade of the existing process units and off-site facilities before the end of 2017 to ensure the capacity increase to 6 million tons per year and to increase the conversion rate.
The refinery modernization project aims to change over to production of oil products to Euro-4 and Euro-5 standards and to increase the conversion rate and yield of light oil products.
HSE
PKKR continued to implement the Korgau Project in 2015 aiming to enhance safety culture and improve HSE management system. 5 PetroKazakhstan employees received awards under an employee award program for reported near misses, unsafe conditions and actions.
PKKR completed its project on drilling waste burial and recycling site construction in 2015. Greenhouse gas inventory was completed and greenhouse gas emission certification was issued for all PetroKazakhstan facilities. A. Yemberdiyev, HSE Director, and S. Zharkimbekov, Head of Environment Protection Group, with their Project on Biological Reclamation of Oil Contaminated Soil and Pyrophoric Iron Sulfide Deactivation have ranked 3 at the contest The Best Innovative Ideas and Practices in the Field of Health, Safety and Environment of JSC NC “KazMunayGas” Group of Companies. Also, PKOP became 1 at the review competition The Best HSE Practice held among South Kazakhstan companies.
SAP Module on accident management has been launched in PKKR, Kolzhan and PKOSI to improve accidents reporting and investigation practices. An independent Electrical Safety Audit was conducted at all of Petrokazakhstan sites, and an audit for control of high HSE risks in the company.
AO PetroKazakhstan Kumkol Resources introduced ENMS 637414 certification to ISO 50001:2011 standard of Energy Management System in August 2015. This standard provides energy efficiency and saving methods considered the best in the world and allowing companies to reduce their power consumption and expenses and meet the environment protection requirements.
CORPORATE SOCIAL RESPONSIBILITY
PetroKazakhstan still implements its multitargeted sponsorship program in the regions of its operation. Social responsibility obligations of 2015 relating to sponsorship projects were fulfilled on time. In addition to its traditional projects and support of sponsored organizations, PKOP signed a Memorandum of Cooperation with the akimat of South Kazakhstan oblast in 2015; 150 mln. tenge were allocated to implement this Memorandum. The charity and sponsorship expenses of PetroKazakhstan Oil Products were 246 mln. tenge as of 2015 year-end.
The overall budget allocated for sponsorship and charity projects by PetroKazakhstan Kumkol Resources in 2015 was about 5 052, 1 billion tenge.
The company’s contribution to the development of regions and the merits of PKKR and PKOP employees were recognized at the republican and local level in 2015. Thus, Energy Ministry of the Republic of Kazakhstan awarded medals “For Contribution to Oil and Gas Sector Development”, certificates of merit, letters of gratitude, and award pins “Honored Worker of Oil and Gas Industry” to 9 PKKR employees. Meanwhile, the Energy Ministry of Kazakhstan has awarded “Veteran Worker ” Medals to 13 PKKR retirees, akim of Kyzylorda oblast and akim of Kyzylorda city have awarded letters of gratitude to 16 employees.
PKOP’s 217 employees received the “For Valorous Labor” Medals, commemorative tokens, certificates of merit and letters of gratitude from KazMunayGas National Company, KazMunayGas-Refining and Marketing, Samruk Kazyna Fund and RK Energy Ministry in commemoration of the 30-th anniversary of PKOP. The top management also awarded the certificates of merit to 194 PKOP employees.