Atyrau Oil & Gas
Brief Analysis of the Oil and Gas Industry of Atyrau Region
Oil and gas production
Atyrau region is one of the largest industrial regions of the country and is rightfully considered a pioneer in the emergence of the oil industry in Kazakhstan. In the region, in 1899, a gush of oil at the Karashungul field flowed, which marked the beginning of the history of Kazakh oil. Commercial production began in 1911 at the Dossor field.
Naturally, the core of the region's economy is the production of hydrocarbons. The region ranks first in terms of industrial production in the country due to the indicators of the oil and gas industry. According to the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of Rok, it accounts for 13.8% of the GRP of Kazakhstan (according to the results of 9 months of 2022) – the second place after Almaty.
In 2022, the region produced 46.8 mln tons of oil and gas condensate (55.5% of the total production in the country), and 24.3 bln cubic meters of gas (45.6% of the total production).
Today, more than 20 companies are producing oil and gas in the region, but such large companies as Tengizchevroil LLP and North Caspian Operating Company B.V. are the locomotive of the industry. In total, the two companies produced 41.9 mln tons of oil in 2022, about 90% of the region's oil production. These companies are developing the Tengiz and Kashagan fields, which are key players in the oil industry of Kazakhstan. Tengiz and Kashagan are among the three breakthrough projects in independent Kazakhstan's oil and gas industry. The Tengiz field is the world's deepest giant oil field, Kashagan is a giant offshore oil and gas field and one of the largest fields in the world discovered in the last 40 years.
Over the years of independence, the oil and gas industry of the region has increased its production figures from 2.6 mln tons of oil in 1991 (10% of the national total) to 46.8 mln tons in 2022. For gas from 29.6 mln cubic meters (0.4% of the national indicator) to 24.3 bln cubic meters in 2023. Thus, the Atyrau region not only demonstrated an increase in production volumes, but also improved its position in the oil industry of the country.
According to last year's results, Tengizchevroil LLP produced 29.2 mln tons of oil or 62.4% of production in the Atyrau region and 34.6% of the total output in the country.
The second major oil and gas producing enterprise in the region, North Caspian Operating Company B.V., produced 12.7 mln tons of oil or 27.1% of oil production in the Atyrau region and 15.1% of total production in the country.
Embamunaigas JSC is another participant of the top three oil and gas industry leaders, accounting for 5.5% of oil and gas condensate production in the region and 3.1% of the extracted raw materials in the country (2.6 mln tons).
Source: IACOG JSC
TCO and NCOC are also the leaders of the region in gas production – 66.5% of the gas produced in the region is accounted for by TCO and 32.4% by NCOC. In total, 24.3 bln cubic meters of gas were produced in the region in 2022 – 45.6% of the national volume.
The oil and gas industry is attractive for investment but at the same time requires considerable capital investments. About 30% of investments in the fixed capital of the Republic of Kazakhstan comes from the mining industry and quarry development. From this point of view, the Atyrau region is a magnet for investment. In 2022, 80% of investments in the fixed capital of the region's enterprises fell on the mining industry. Compared to 2021, there is an increase in the volume of capital investments in the region by 14%. The region still retains leadership as it accounts for 20% (3 tln KZT) of the country's total investment in fixed assets.
Production of petroleum products
The core of the oil refining industry of the region is the Atyrau Oil Refinery (AOR), which is the first oil refinery built in the country.
In 2022, 5,224.3 thous. tons of oil were processed at AOR, which is 4.7% less than in 2021. The decrease in refining is due to the planned preventive repair of 32 technological units of the plant in 2022.
The plant produced 1,255.7 thous. tons of gasoline over the past year, which is 8% less than in 2021. Diesel fuel production decreased by 6.1% and amounted to 1,463.8 thous. tons. The production of jet fuel amounted to 131.7 thous. tons of jet fuel, the increase in production is 7.3%.