Twenty Years Of Successful Partnership
Renato Maroli, General Director of KPO: «We are Moving Towards the Sustainable Development»
- Dear Mr. Maroli, first of all I would like to congratulate you and all your team with 20-year anniversary of the Karachaganak agreement. Could you briefly describe the Company’s production achievements approaching this date?
- Exactly 20 years ago, in November of 1997, the Republic of Kazakhstan and the Karachaganak Project partners have signed the Final Production Sharing Agreement, which launched a full-scale development of a unique oil, gas and condensate field in Western Kazakhstan.
During two decades, the partners invested around 22 billion US dollars into the development of the field, which allowed to achieve a record volumes of extraction. Thus, in 2016, Karachaganak produced 139.7 million barrels of liquid hydrocarbons, crude and fuel gas oil equivalent. During these years new industrial objects are commissioned, new export routes are established, industrial and ecological safety are provided.
Working in close cooperation with the West-Kazakhstan Region Akimat and competent authority - PSA LLP, the international Consortium Karachaganak Petroleum Operating B.V. applies the newest technologies in their work, increasing production and, accordingly, the revenues of the region and the country. Our fruitful partnership with the Republic of Kazakhstan guarantees that the production plans of KPO comply with the national objectives, which is the key to the successful development of the country’s natural resources and provides benefits to the national economy.
I would like to note that partner companies of the Karachaganak Consortium are among the largest foreign investors in the country. Our 20-year experience of mutually beneficial cooperation will continue to help achieving high production results at the field, which is considered one of the locomotives of Kazakhstan’s economy for a reason.
We are the largest employer in the region and attract local personnel that not only increases the production capacity of the Company, but also enhances the development of economic and intellectual poten tial of the Western Kazakhstan on a long-term basis.
Karachaganak today is a worldclass production, multi-billion investments, a record-setting operating performance, innovative technology, and sustainable development principles underlying the activities of KPO. The entire multicultural collective of Karachaganak Petroleum Operating B.V. is proud of its involvement in this project of the world level and the extensive work that we perform during the last 20 years in the West-Kazakhstan Region.
- Operation of any oil-production enterprise requires a large complex of works on environmental protection in areas of development. What priorities you put at the forefront of the environmental activities of the Company?
- During the development and operation of such a technologically complex deposits as Karachaganak, the environmental protection and ensuring the occupational safety are crucial factors of successful operation of the Company. Achievements of KPO gave the recognition of the leader in the oil and gas industry based on showings in the field of occupational health, safety and environmental protection both to the Karachaganak and the Republic of Kazakhstan.
Since accepting the functions of the operator at the Karachaganak in 1997, KPO has invested more than 335 million US dollars in the implementation of specific environmental measures, aimed at improvement of ecological index of the field.
The «Green economy», which currently is so popular in Kazakhstan, is implemented at the Karachaganak from the very beginning. The Consortium focuses on the biodiversity conservation and minimal interference with the existing ecosystem. That is why you can meet wild ducks and foxes, and even «Red List» animals at the field.
Our Company uses only the most advanced equipment and applies technologies which are the last word in the oil and gas industry. Working in harmony with the surrounding environment is a significant challenge that requires a constant effort of every employee of KPO and contractors’ personnel. The main goal of the environmental protection is ensuring the safe operation of the production facilities, minimizing environmental impact and complying with all the requirements of the legislation of the Republic of Kazakhstan in this field.
We pay special attention to activities aimed at reducing pollutant emissions, waste management and the introduction of new technologies. The gas utilization rate at the Karachaganak is 99.84 percent, which is the world-class achievement. Last year the volume of flared gas was only 0.16 percent of the total volume of produced gas, or 0.97 tons per one thousand tons of produced raw materials that confirms the high level of KPO on the given indicator in comparison with world oil companies.
That being said, the carbon intensity per unit of hydrocarbons production remained at the same level as in 2015. Now they are below the average International Association of Oil and Gas Producers (IOGP) indicators by 52 percent. The actual reduction of greenhouse gas emissions amounted to 337.1 thousand tons of CO2 in 2016 by means of reduction of oil and gas burning during the well operations. This shows an improvement in the overall greenhouse gas emissions at the production facilities of KPO.
Karachaganak is also one of the first fields in the world that successfully implemented the technology of gas re-injection into the reservoirs, which provides significant environmental benefits of the project. A source of pride for us are the electric generators at the Karachaganak processing complex, they are equipped with a dry combustion system, which makes them one of the most environmentally friendly power plants. For several years environmentally friendly «green torch» technology is used at the Karachaganak field, which excludes emission of harmful micro particles in the atmosphere when testing the wells. The main principle is that compressors pump the air into the combustion zone, thereby contributing to a more effective gas combustion with no soot.
Our Company has made a conscious efforts in order to comply with the principles of environmental protection, reduction of greenhouse gas emissions and conservation of the natural resources through the introduction of best available technologies. To carry out this important task, KPO devises a plan of activities aimed at the environmental protection. In addition, the environmental management system, in accordance with the requirements of the ISO 14001 standard, has been implemented and successfully functioning in the Company.
The project «Water reuse at the Karachaganak field» developed by KPO was named among the best environmental projects at the ceremony for environmental protection and safety «Eni Safety and Environmental Award», which took place on June 5 in Milan, on the eve of the World Environment Day.
Overall, awarded four projects in the Environmental Protection category and four projects in the Safety category among all of its subdivisions worldwide.
The project, implemented by our Company was presented in the Environmental protection category as the best practices for further advancement and implementation among other units of Eni as a leading method. Preservation of the purity of water bodies and groundwater, as well as reducing water intake and water reuse in processes are one of the most important environmental objectives of KPO. To achieve this task, the Company does not dispose waste waters into the natural water reservoirs, as treated wastewater at the field’s facilities is discharged into isolated storage, preventing the penetration of contaminants into surface water, groundwater and soil.
Treated wastewater is reused for making drill mud, watering and dust suppression.