BG GROUP MARKS ITS 20TH ANNIVERSARY OF STRATEGIC PARTNERSHIP WITH THE REPUBLIC OF KAZAKHSTAN
This year BG Group celebrates its 20th anniversary in the Republic of Kazakhstan. In 1992, the company first established a formal presence in Kazakhstan, becoming one of the first international investors to join Kazakhstan in its journey to become a global energy leader.
Sir Frank Chapman, BG Group Chief Executive, said: “Today we celebrate two decades of partnership built on trust, shared understanding and a common purpose. With each milestone in the development of the giant Karachaganak field, from the signing of the final production sharing agreement in 1997 to the start of a fourth train last year, we have grown closer. Indeed, earlier this year the Republic of Kazakhstan and KMG formally joined the Karachaganak project. This paves the way for the next phase of development, which will ensure that together we capture the enormous remaining value in the field for the government, the people of Kazakhstan and the contracting companies.”
As joint operator of the supergiant Karachaganak oil and gas condensate field, BG Group has brought capital, technology and expertise to develop this world-class resource. Since 1999, production at Karachaganak has trebled to nearly 140 million barrels of oil equivalent. This in turn has supported Kazakhstan’s development as one of the economic leaders of the Central Asian region.
BG Group continues to support the Republic’s long-term modernisation and development strategy. Since its creation in 1997, Karachaganak Petroleum Operating b.v. (KPO) has trained 115,000 Kazakhstani citizens, procured local content level totalling over $4 billion, and financed $196 million in social infrastructure projects in the Western Kazakhstani Oblast.
Through its joint industry Code of Practice, BG Kazakhstan is bringing international best practice to the management of the energy sector supply chain, helping to support development of local content. Through its Natural Gas Vehicle pilot project, the company is supporting the development of ecologically clean transport in the Almaty.
BG Kazakhstan was honoured to receive from President Nazarbayev the ‘Best Foreign Investor’ award in 2008 and the ‘Best Long-Term Strategic Partner’ award in 2012. The company is proud of its contribution to the development of Kazakhstan since the first days of independence, and looks forward to deepening its partnership with the Republic in the years to come.
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 20 countries on five continents, BG Group has a broad portfolio of exploration and production, liquefied natural gas (LNG) and transmission and distribution business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.
BG Group holds 29.25% interest in the Karachaganak oil and gas condensate field as a joint operator through the Karachaganak Operating Company b.v. (KPO), and 2% in the Caspian Pipeline Consortium (CPC), which links Kazakhstan’s oil reserves to world markets.
Discovered in 1979, Karachaganak facilities commenced production in 1984. In 1992, BG Group and ENI were awarded the exclusive right to negotiate for the further development of the field. The Final Production Sharing Agreement (FPSA), which granted a 40 year licence period, was signed in November 1997.
Since the signing of the FPSA, BG Group and venture partners have invested around $17 billion into developing the field, applying industry leading technology aimed at maximizing sustainable economic value, sharing world best practices in safety and environmental protection.
Karachaganak fact file:
- 95 producing wells and 16 sour gas re-injection wells are currently online at Karachaganak, with a total well stock of 375 wells.
- Karachaganak production for 1998-2012 is about 1.45 billion barrels of oil equivalent.
- Since the signing of the FPSA, BG Group and partners have build approximately 2000 km of pipelines make up the infield system;
- Since beginning of the FPSA in 1997, the local content level in all contracts assigned exceeded $4 billion.
- Since 1998 KPO has allocated $195,717 million to social infrastructure projects in the WKO.
- 115 000 local employees trained;
For further information visit: www.bg-group.com