Oil Chronicles
Oil Chronicles. June 2022
June
Starting June 1, NCOC commenced the turnaround of the Kashagan offshore and onshore facilities.
A turnaround is one of the most critical planned activities, which implies a complete production shutdown for a short period once every few years as dictated by regulatory compliance and business needs. Large-scale work, with a volume of more than two mln man-hours, is planned to be completed within 45 days.
Starting June 1, KazTransOil has increased the tariff for the service of pumping oil through trunk pipelines for export outside Kazakhstan by 20%.
The Financial Monitoring Agency has put on the wanted list the former acting chairman of the Board of the National Company QazaqGaz Ibulla Serdi, according to a message on the Telegram channel of the Agency. "He is suspected of stealing someone else's entrusted property on a particularly large scale, committed by a group of persons by prior agreement," the Agency said in a statement.
June 3, Tengizchevroil's (TCO) announced that the Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP) had achieved another critical milestone with the launch of an Integrated Operations Control Center (IOCC) at Tengiz.
The state-of-the-art IOCC facility applies the latest digital technologies and is the only facility of its kind in Kazakhstan's oil and gas industry. It will integrate the management of all TCO's production plants into one control center and operating model. The IOCC is located 20 km away from TCO's production facilities. It also includes a 2200 square meter central control room designed to provide Tengiz field operators with the flexibility to make better decisions, improve reliability and optimize production performance.
Reuters reported that on June 6, oil producers from Kazakhstan plan to change the name of exported oil in official documents due to anti-Russian sanctions.
It is proposed to label oil shipped through Russian seaports as KEBCO (Kazakhstan Export Blend Crude Oil). This will allow to distance from the sanctioned name Urals. The news agency also noted that the Ministry of Energy plans to request permission from the Government to use the name of the new grade officially.
Thus, the report says that Kazakhstani oil producers hope to achieve higher prices for their oil and facilitate its sale if the documents clearly indicate that it is not from Russia.
June 8, KazMunayGas and Chevron Corporation, through its subsidiary Chevron Munaigas Inc., have announced a memorandum of understanding to explore potential lower carbon business opportunities in Kazakhstan.
KMG and Chevron plan to evaluate the potential for lower carbon projects in carbon capture, utilization, and storage (CCUS); hydrogen; energy efficiency, methane management, and carbon financial disclosure methodology.
The Memorandum was signed by Magzum Mirzagaliyev, Chairman of the Management Board of KMG, and Derek Magness, Managing Director for Chevron's Eurasian Business Unit in Nur-Sultan, with the participation of Chevron's Executive Vice President of Upstream Jay Johnson.
June 8, KazMunayGas and the European Bank for Reconstruction and Development signed the Memorandum of Understanding on strategic cooperation in decarbonization. The partnership aims to support KMG in reducing its carbon footprint as part of implementing and improving the effectiveness of the approved KMG Low-Carbon Development Program.
The parties' efforts will focus on improving KMG's reporting capacity following the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), as well as on analyzing the potential and opportunities for financing low-carbon projects to improve energy efficiency, renewable energy development, implementation of low-carbon hydrogen and carbon capture and storage pilot projects.
June 9, the Ministry of Energy, Samruk-Kazyna, KazMunayGas, and Total Eren S.A entered into the Agreement in Principle under the project for the construction of a 1 GW wind power plant (WPP) in the Zhambyl region.
The Agreement was signed because of work performed under the previously signed Memorandum of Understanding between the said parties as of 28 October 2021. The Agreement provides for the location to construct the 1 GW wind power plant with an energy storage system (capacity of at least 100 MW/200 MWh) near the village of Mirny in the Zhambyl region. Specific actions to be taken by the Parties to implement the project were also determined. The WPP project will be implemented in stages. The project is scheduled for completion between 2024 and 2026.
In addition to the above, the Parties will establish a Centre of Excellence in the operation of large RES facilities and electricity storage systems in Kazakhstan to train local specialists.
June 10, the KazMunayGas delegation led by Magzum Mirzagaliyev, Chairman of the Management Board, visited one of the largest petrochemical complexes in Russia and worldwide – ZapSibNeftekhim LLC (SIBUR Holding Group's petrochemical plant) located in Tobolsk. During the visit, the guests were shown ZapSibNeftekhim's new production facilities. Their aggregate capacity is rated for the production of 2.5 mln tons of base polymers per year (1.5 mln tons of polyethylene and 1 mln tons of polypropylene). KMG's delegation also visited the SIBURINTECH Centre for Engineering and Technical Expertise Development.
On June 10, The V International Uralsk Green Forum (UGF), organized by Karachaganak Petroleum Operating B.V. and West Kazakhstan region local administration, was held in Uralsk.
Representatives of the Ministry of Ecology, Geology and Natural Resources of RoK, Committee on Issues of Ecology and Environmental Management of the Parliament's Mazhilis Chamber of RoK, regional state structures, industrial, specialized associations, and agencies participated in the Forum.
The event's main purpose was to exchange experience for further cooperation in the implementation of the green economy concept, enhance a comprehensive dialogue on environmental issues for consolidation of joint efforts, and form a common outlook toward sustainable development of the region. Eco-Talks "Green Course for a sustainable future" was also held within the framework of the Forum for students of the West Kazakhstan region.
June 13, KazMunayGas completed the acquisition of the 49.5% interest in Kazakhstan Petrochemical Industries Inc. LLP from Samruk-Kazyna JSC.