KPO Reports Half-Year Performance Results
Karachaganak Petroleum Operating B.V. (KPO) announced its performance results for the first half-year period.
Over this period KPO produced more than 75 million barrels of oil equivalent of stable and unstable liquid hydrocarbons, export raw gas and sweet fuel gas. Moreover, 5 billion cubic metres of raw gas was re-injected into the reservoir, representing 49.3 per cent of total gas produced.
To-date, KPO Partners have invested more than $26.6 billion into the development of the Karachaganak field.
Despite the impact of the global oil and gas industry downturn further exacerbated by the COVID-19 pandemic KPO continues operating its production facilities in strict compliance with all safety requirements and 2020 production targets.
KPO General Director Edwin Blom said: “KPO plans to fulfil its obligations with respect to liquids and gas production in accordance with the approved annual 2020 Work Program and Budget. Considering the risks posed by COVID-19 KPO is undertaking its best efforts to maintain profitability based on a number of oil price scenarios”.
“Our performance is ahead of the budget. Plateau extension projects such as KPC KGDBN and 4IC projects are at the stage of implementation.”
“We should take this opportunity to adopt new digital technologies to streamline business processes impacted by the current crisis. This requires resilience, extraordinary thinking and commitment. I am sure that KPO will capture lessons learned from this crisis and will become even stronger and better prepared for what the future holds in store for us,” added Edwin Blom.
Professional development and upgrading of Kazakh national employees continue to be one of the key areas for KPO. A few years ago, KPO launched the Enhanced Development Program to identify high potential employees and define their future development plans to enable them to unlock their maximum potential and achieve the highest career growth. The program allowed to clearly define career goals and support the participants in preparing effective professional development plans. Based on the program outcomes, more than 50 per cent of the participants have already been promoted in line with their professional development plans. For the first half-year period the ratio percentage-wise of KPO local employees has been as high as 96 per cent out of overall engineering and technical personnel and 81 per cent in managerial roles.
KPO has always focused on environmental issues. Both short-term and long-term activities are executed in line with the approved plan with special subsoil use requirements duly followed.
KPO has achieved gas utilisation rate of 99.9 per cent for the first half-year period of 2020, which is a world class achievement. To-date, KPO’s overall investments into environmental activities totalled $417 million.
KPO continues monitoring emissions to the environment in full scope including air emissions, wastewater discharges, waste storage as well monitoring of air quality, surface and subsurface water and soil.
In addition to these efforts, a new Energy Audit is ongoing with the aim of determining degree of rational use of energy resources and finding opportunities for their more efficient use. Following the energy audit a long-term action plan will be designed addressing energy saving and GHG emersions reduction.
KPO is one of the leading companies in the oil and gas sector of the Republic of Kazakhstan in terms of level of procurement of goods and services from local manufacturer companies. From the day of the signing of the Final Production Sharing Agreement, thousands of Kazakhstani companies have attained invaluable expertise while working on a world class project. At the end of the first half of the current year the share of Local content in KPO contracts for the supply of goods, works and services exceeded 59 per cent or more than $331 million in monetary terms.
KPO delivers many major projects aimed at developing the social infrastructure of the West Kazakhstan oblast. To-date, KPO's total investment in the development of the social infrastructure of the region has totalled $416 million.
Moreover, KPO provides significant support to public health facilities by procuring essential equipment including specialised equipment for ICUs. KPO has also donated funds to the WKO Public Charity “Birgemiz-Oral” to support the most vulnerable groups of community affected by the economic fallout of the COVID-19 pandemic.
“We are going through an unprecedented period. The main brunt of the fight against the pandemic is born by healthcare professionals, who need our common support. In this situation, no one should remain a bystander, and with this mindset KPO as a good corporate citizen and responsible business lends a helping hand to our host region and the neighbouring communities”, said Edwin Blom.
These initiatives once again demonstrate the Company’s high level of social responsibility and its readiness to cooperate with the local community. KPO is committed to maintaining its obligations to the Republic of Kazakhstan while making every effort to protect health and safety of the Company employees and the local community. The Company will continue supporting local authorities to obtain required materials and equipment to control the spread of COVID-19 and treat confirmed cases.
“Current crisis has introduced new global trends into play, forcing businesses to alter their ways and approaches to work and KPO is no exception. KPO has been forced to review its priorities and business processes to overcome coronavirus pandemic challenges exacerbated by the drop in oil price. That said, KPO will continue its close cooperation with regulatory authorities, regional government bodies, industry partners and other stakeholders in order to integrate the country’s interests, key business goals and our corporate values”, said Edwin Blom.
“The KPO team is looking into the future with confidence and optimism and is ready to deliver the plans pertaining to the development of Karachaganak field in strong partnership with the Republic of Kazakhstan. This partnership has stood against the test of the time and it will overcome the challenges caused by the pandemic so that we can continue its journey to a successful and bright future for all of us”, concluded Edwin Blom.