KPO production facilities are operating stable amid fight against COVID-19
Against the backdrop of the declared State of Emergency due to the COVID-19 pandemic spread worldwide including Kazakhstan, the production facilities of Karachaganak Petroleum Operating B.V. continue operating in compliance with all requirements to ensure safe production under existing conditions.
According to KPO General Director, Edwin Blom “Despite the challenges associated with the ongoing all-out battle with the virus, KPO remains committed to maintain safe operation of the giant Karachaganak field for continued generation of revenue for the Republic. In addition, keeping the field running during this precarious time means thousands of jobs that provide for many more households across the region and beyond. KPO is ahead of target with 2020 production volumes approved by the Authority and Partners. In general, the reliability of KPO production operations remains stable.”
Health and safety of company personnel and local community are at the heart of the business of the company, which has switched 1200 employees to smart remote working to date. During tough quarantine measures in place, the company intends to preserve jobs and to maintain safe working conditions for both company and contractor personnel.
This also applies also for the KPO’s major projects, there are two major projects in full execution, The Karachaganak Gas Debottlenecking Project (KGDBN) and 4th Gas Injection Compressor Project (4IC) and both of these projects are critical to safeguard future production for KPO and RoK.
Both project teams are taking every precaution to ensure the health and welfare of KPO staff, suppliers and contractors, which remains KPO’s utmost priority in these unprecedented times. Despite the challenges both project teams and its contractors jointly continue to progress these projects and continue to provide livelihoods for 3000+ locals employed.
The contractors have given assurance to progress by managing available manpower in the most efficient manner through extended shifts, by continuing to pay the wages of the personnel who are forced to stay and at home, and paying extra overtime for the staff who are on extended shifts. Furthermore, the project teams are working closely with suppliers to restart production, by issuing letters highlighting the criticality of the project in RoK Oil & Gas sector to the authorities. Although the pandemic will have an impact on the project delivery, KPO and its contractors will do their utmost to deliver these projects in safely and cost effective manner.
As is well known, Karachaganak Petroleum Operating has been actively contributing to the involvement of Kazakhstani suppliers and manufacturers of goods in the development of Karachaganak Field. KPO is one of the first oil and gas operators in Kazakhstan, which has successfully implemented Local Content Development Program. An intensive work towards achieving the targets of the program have been already yielded tangible results. By the end of 2019, local content share in the goods, works and services was 57 %, which in monetary terms equals to $684 million. Over the last couple of years, KPO has made drastic changes in the nature of procurement of goods from simple products to complex high-technology goods and equipment.
“The current situation, obviously, is unprecedented challenge for all of us and for the global economy. KPO will do everything within its power to protect the health and safety of its personnel and community. We will continue strengthening our long-lasting relations and collaboration with the authorities of the Republic of Kazakhstan in pursuit of our common goal to create maximum value and sustainable development for the residents of the West Kazakhstan region and the Republic in general! ” Edwin Blom added.