KIOGE-2024
Our Work Principle: Success Favors Effort Hi-Tech Drilling: New Horizons of Directional Drilling
In an exclusive interview with Petroleum, Nurken Mirzabekov, General Director of AVC Group LLP, discusses how the company, drawing on years of experience, is implementing new advanced technologies in Kazakhstan’s oil refining industry.
– Nurken Bayamanovich, your company has operated in the Kazakhstani market for over ten years. Which of the projects implemented during this time are you most proud of?
– Our journey began in 2013 in the city of Aktau, Mangystau region of Kazakhstan, with a small office of 15 square meters and two employees. The idea was rooted in the desire to create a wholly Kazakhstani company that competes on equal footing—in terms of competence and business processes—with international engineering corporations.
The company name, AVC Group, comes from the Latin phrase "Amat Victoria Curam,” which means "Victory loves diligence." This motto reflects our philosophy: a conscientious and responsible approach to work, a commitment to continuous development and adoption of new technologies, and building long-term partnerships.
Today, AVC Group is a successful group of companies employing over 1,000 people in four cities across Kazakhstan: Almaty, Atyrau, Pavlodar, and Aktau.
Over the years, the company has successfully executed approximately 1,500 projects. Despite having large and significant EPC projects in our portfolio now, as a responsible and stable supplier of goods, works, and services, AVC continues to undertake small-scale projects—the kind we started with more than 11 years ago.
I want to highlight some of our most memorable projects. One of them—the very first—was the supply of specialized equipment to the Karazhanbasmunay field: industrial dishwashers.
Our first international experience was also memorable. We gained it during a project with Uzbekneftegaz JSC to develop the Akchalak group of fields. Our specialists supplied a set of control and instrumentation equipment.
One of the proudest achievements in our portfolio is the development and implementation of the first and only automated additive injection and filtration system in the Republic of Kazakhstan according to IATA standards. This allowed the Shymkent Refinery to commence Jet A-1 Fuel aviation kerosene production in 2019.
A valuable and truly unique project was the planned preventive maintenance of the Atyrau Refinery in 2020, conducted during the pandemic under real force majeure conditions. COVID-19 cases were at their peak, and restrictions were strict. Despite this, we needed to perform complex work in a tight timeframe.
At that time, we developed our own technical solution, AVC Lens, a real-time remote access system, and successfully implemented it in practice. We ensured high-quality work within the established deadlines, assembled a team of highly specialized experts, and mobilized all internal resources of the company.
This project proved our ability to solve complex tasks in unconventional conditions, solidifying AVC Group's reputation as a reliable partner and contractor. Since then, as the general contractor, we have successfully carried out annual maintenance work at the Pavlodar Petrochemical Plant and the Atyrau Refinery.
At the beginning of this year, AVC Group achieved a landmark result: we implemented Kazakhstan's first EPC turnkey project for the construction of a furnace for the bitumen production unit at the Pavlodar Petrochemical Plant exclusively using Kazakhstani specialists. This project is, without exaggeration, an important milestone in the development of Kazakhstan's oil refining industry. As a result, bitumen production at Pavlodar PCP increased by 15%, significantly contributing to the country's economy.
– One of the areas of your work involves supplying equipment from leading global manufacturers. In your opinion, what is hindering the relocation of such equipment production to Kazakhstan? Why do we mainly purchase equipment and materials for oil production and refining abroad rather than producing them domestically?
–We strive to implement the most advanced and high-quality solutions. At the same time, we are against localization for the sake of localization because, as of today, Kazakhstan lacks a full-fledged base for the production of complex equipment. The shortage of engineering personnel, design institutes, and necessary raw materials and our unfavorable geographical location make manufacturing in Kazakhstan significantly more expensive than in other countries. Mindlessly pursuing production localization will increase project costs, which is unacceptable for our clients.
Therefore, we believe that providing quality solutions today is possible mainly through equipment from foreign partners. Of course, in the near future, we are considering the possibility of localizing complex technological equipment, but as of now, it is impractical. For other items, we collaborate with local manufacturers.
Moreover, in the complex technological processes of oil refining, the concept of proprietary equipment—licensed equipment that must meet strict requirements and standards. Many licensors have vendor lists (approved and reliable manufacturers/suppliers). Therefore, we have limitations when choosing suppliers to ensure quality compliance.
At the same time, we are actively working with licensors to accredit local manufacturers.
We closely monitor advanced technologies; for example, we plan to implement projects using 3D printing soon. This technology allows us to print spare parts for equipment and can, therefore, become a promising direction for production localization in the future.
– One of the recent trends is the implementation of green technologies and low-carbon development in production. What do you offer your clients and partners in this area?
– AVC Group is actively developing solutions in the field of green technologies for the oil and gas and oil refining industries. We participated in drafting the Environmental Code project concerning automated flue gas monitoring systems and offered solutions for controlling and reducing atmospheric emissions. In collaboration with VEOLIA, a global leader in this area, we provide solutions for optimizing water resource usage at oil refining complexes.
This year, we implemented a project introducing a flue gas analysis system at the thermal power plant (TPP) in Atyrau, which the Ministry of Ecology mandated. The system allows us to monitor and balance the ratio of oxygen and carbon dioxide in the flue gases, optimizing the combustion process and increasing boiler efficiency. As a result, we achieve fuel savings of 8–10% per year and reduce atmospheric emissions. This project is a vivid example of how our solutions enhance operational efficiency and improve the region's environmental situation.
Currently, Kazakhstan faces barriers to implementing green technologies due to high costs and underdeveloped infrastructure. We are studying international experience and seeking ways to implement green technologies while considering our country's specific characteristics. We are confident that in the future, such technologies will become more accessible and effective in Kazakhstan.
– What digital solutions do you use in your work? The topic of artificial intelligence has become very popular lately—in your opinion, is AI capable of partially replacing human intelligence in your work?
– In terms of digitalization, we implemented the first and, to date, the only project in Kazakhstan—the Airankol Smart Field (Caspiy Neft).
The solutions for Caspiy Neft JSC include the complete automation of the technological processes of oil extraction, preparation, intermediate storage, and shipment to the transport company. From a technological standpoint, advanced solutions were applied to build a distributed process control system, a unified historical data archive, tank-level oil accounting, a commercial metering unit for oil shipment, and visualization of technological processes with the ability to view all mimic diagrams from any workstation. Reporting at any time during the company's operations is enabled using web technologies, along with the development of a system for preparing, encrypting, and transmitting data to the Oil and Gas Condensate Accounting System (OGCA).
This allowed us to establish and maintain an optimal level of oil production while minimizing operating costs by 20% and improving the qualitative and economic performance of the enterprise by 20–25%.
As for AI, it can become a powerful tool for increasing efficiency in the oil and gas industry. I believe it can automate routine tasks such as developing estimates, checking documentation, and creating basic regulations.
AI does not replace human resources but complements them, freeing time for more creative and complex tasks. Although the implementation of artificial intelligence requires time and certain investments.
– Please tell us about the team at AVC Group: where do you recruit specialists, and how do you train them and help them enhance their qualifications?
AVC Group is a dynamic company with a young team. Our employees, on average, are 33. We take pride in cultivating our talent and pay special attention to developing young specialists.
The company has a staff of unique technical experts focused on solving complex technological issues in oil refining. Qualified employees are the main capital and resource of AVC Group. For ten years, the company has been nurturing a new generation of oil refiners, serving as a benchmark and aspiration for other Kazakhstani players in the industry.
We have a mentorship program that helps young specialists quickly adapt to company work and develop their professional skills. We closely collaborate with top technical universities in Kazakhstan, annually accepting up to 30 students for internships. In addition, every year, 10–15 students undergo practical training directly at the Atyrau Refinery (ANPZ) and the Pavlodar Petrochemical Plant (PNHZ).
We welcome young specialists with open minds ready for new experiences and development. We are confident that investing in young talent is an investment in the future of our company. We understand that a motivated and developing team is the key success factor. That is why we invest in our employees, providing them with the best working conditions and opportunities for professional growth.
Motivation and personnel development are our priorities. We conduct salary analyses annually and quarterly to guarantee competitive conditions for our employees.
In addition to financial motivation, we offer employees the best social benefits: medical insurance in the country's top clinics, generous allowances, compensations and payments, additional vacations, memberships in leading sports clubs, vehicle provision, and more.
Training and development are the foundation of professional growth. Every year, we approve a "Unified Qualification Improvement Plan," sending specialists for training at global training centers in the UK, Italy, the USA, India, and China. In 2023 alone, 106 specialists were trained in international centers, and in the first half of 2024—68.
We encourage knowledge sharing within the company, creating an environment for continuous professional growth. This ensures our employees are always up-to-date with the latest trends and technologies, allowing us to execute the most complex projects.
– What directions will your company take in its development over the coming years? What are your long-term plans?
– We plan to strengthen our expertise in water resources, focusing on water purification technologies and the efficient use of water resources.
We also aim to develop areas related to hydrogen technologies, 3D printing, and digitalization.
We are confident that a strong engineering foundation is a key success factor for the development of the gas-chemical cluster in Kazakhstan. We plan to actively participate in implementing large-scale projects in this area, contributing to the formation and strengthening of the country's engineering base.
– It is known that the company has established its charitable foundation. What is its mission, and what are the criteria for selecting projects for sponsorship support?
Our company has always emphasized social support, regularly providing charitable and sponsorship assistance. However, we realized that a separate foundation was necessary to implement larger-scale projects aimed at systemic changes. This led to the creation of the AVC Charitable Foundation.
The foundation was established to improve the quality of life in Kazakhstan. Our slogan is: "Into the future through knowledge and victories via enlightenment!" We strive to create new forms of charity and sponsorship and integrate them into society's consciousness.
The foundation focuses on implementing public health, education, science, culture, art, and enlightenment projects. We pay special attention to education, the key factor in shaping the country's successful future. Ignorance breeds lower social strata, whereas investing in education is investing in progress.
This year, the foundation launched scholarship programs for students of technical universities in the Republic of Kazakhstan, as well as a program to enhance the qualifications of faculty members.
When selecting projects for sponsorship support, we are guided by the following criteria:
- Social significance: The project must address an important social issue and bring real benefits to society.
- Long-term effect: It should have a lasting impact and contribute to sustainable development.
- Transparency and efficiency: The project must be transparent and efficient in using financial resources.
- Alignment with the foundation's mission: The project must correspond to its mission and fit its strategic goals.
In summary, the AVC Foundation contributes to building a more just and prosperous society in Kazakhstan, where everyone can realize their potential. We believe that investing in the future means investing in education, health, and the prosperity of our society!
Thank you for your interesting insights, and we wish your company's team continued success!