A Brief Analysis of the Oil and Gas Industry of the Atyrau Region
Information-Analytical Centre of Oil and Gas JSC of the Ministry of Energy of the Republic of Kazakhstan is the official source of statistical and analytical reports on the oil and gas industry activities, oil, gas, and petroleum products markets.
At the same time, IACOG provides information and analytical materials on oil and gas production in the context of oil and gas companies and fields, transportation, export, import of oil and petroleum products, production, storage and sale of petroleum products, and the cost of goods, works, and services.
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. Last year, the famous Dossor oil field celebrated its 110th anniversary.
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 oil and gas industry indicators. According to the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of Kazakhstan, it accounts for 12.3% of the GRP of the Republic of Kazakhstan (according to the results of 9 months of 2021) – the second place after Almaty.
In 2021, the region produced 47.7 mln tons of oil and gas condensate (55.6% of the total production in the country) and 24.9 bln cubic meters of gas (46.3% of the total production in the country).
Today, more than 25 companies produce oil and gas in the region. Still, such prominent companies as Tengizchevroil LLP and North Caspian Operating Company B.V. are the locomotive of the industry. In total, the two companies produced 42.8 mln tons of oil in 2021, 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 discovered in the past 40 years, and it is one of the largest fields in the world.
Over the 30 years of independence, the oil and gas industry of the region has increased its production indicators – oil from 2.6 mln tons in 1991 (10% of Kazakhstan's total production) to 47.7 mln tons in 2021, gas from 29.6 mln cubic meters (0.4% of Kazakhstan's total production) to 24.9 bln cubic meters in 2021. Thus, the Atyrau region demonstrated an increase in production volumes and improved its position in the oil industry of Kazakhstan.
In 2021, Tengizchevroil LLP produced 26.6 mln tons of oil, or 55.7% of production in the Atyrau region and 31% of total production in the country. The second major oil and gas producing enterprise in the region, North Caspian Operating Company B.V., produced 16.2 mln tons of oil, or 34% of oil production in the Atyrau region and 19% of total production in the country.
Embamunaigas JSC is another participant of the top three leaders of the oil and gas industry, which accounted for 5.3% of oil and gas condensate production in the region and 3% of the extracted raw materials in the country (2.5 mln tons).
TCO and NCOC are also the leaders of the region in gas production – 59.3% of the gas produced in the region is accounted for by TCO and 40% by NCOC. In total, 24.9 bln cubic meters of gas were produced in the region in 2021 – 46.3% of the national volume.
The oil and gas industry is attractive for investment but at the same time requires considerable capital investments. About 28% 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 2021, 73% of investments in the fixed capital of the region's enterprises fell on the mining industry. Despite a decrease in the volume of capital investments in the region by 11.2% compared to 2020, the region still retains leadership. It accounts for 22% of the country's total investment in fixed assets, or 2.9 tln tenge.