KARACHAGANAK PETROLEUM OPERATING OVERVIEW AND OBJECTIVES

Transcription

1 KARACHAGANAK PETROLEUM OPERATING OVERVIEW AND OBJECTIVES Aug 2018

2 KARACHAGANAK PROJECT Russia Astana Karachaganak Kazakhstan Black Sea Turkey Caspian Georgia Sea Azerbaijan Turkmenistan Discovered in 1979, production started in 1984 $23 billion invested since FPSA signing in % of the Country s total gas production 16% of the Country s total liquids production 2017 production: 146 million boe More details at % 29.25% 18% 13.5% 10% KPO SHAREHOLDERS 2

3 KPO PROJECTS PORTFOLIO AND PRODUCTION FORECAST PEP - Plateau Extension Projects KEP1 - Karachaganak Expansion Project PEP Sanctioned Projects KEP-1 3

4 KPO PROJECTS KPO is starting several plateau extension and expansion projects: Karachaganak debottlenecking project 4 th Injection compressor project 5 th trunkline project Karachaganak expansion project. Stage 1 Overall value of those projects is several billion USD During implementation of those projects, KPO is focused on local content i.e. procuring goods, works and services supplied: Either local companies; or Partnerships between international and local companies 4

5 EXISTING KPO FACILITIES AND NEAR TERM PROJECTS KARACHAGANAK PROCESSING COMPLEX (KPC) KEY KPC FACILITIES Oil stabilisation & sweetening Sour gas dehydration & HC Dewpointing Gas Compression Fuel Gas Sweetening Power Generation Unit 2 Facilities Oil Stabilisation Sour gas dehydration Reinjection Gas Compression KGDBN PROJECT Sour gas dehydration & HC Dewpointing 4IC project Reinjection Gas Compression UNIT-2 Key KPC Facilities Oil Stabilisation Gas Dehydration & H/C Dewpointing Gas Compression UNIT-3 5

6 KPO PROJECTS DEMANDS Our demand in upcoming projects are: Compressors, pumps Pressure vessels and drums Modularised Electrical Equip Structural steel Piping Materials and Valves Electrical Transformers Insulating Joints Flare Package Structural Steel Bulk Materials Electrical bulk Materials Instrumentation bulk Materials Telecoms Materials Electrical & Instrumentation Cables Cathodic Protection Civil Materials Coating & Insulation Etc. 6

7 KPO plans on cooperation with Dutch companies KPO currently cooperates with UK Department of International Trade (UK DIT) and Chamber of Kazakhstan-Italy (CCIK) Following tight cooperation's in last 2 years resulted: A establishing a joint venture (UK-Kazakhstan) for structural steel fabrication; A UK company opened a temporary fittings production workshop; A UK based company transferred technology for manufacturing of electrical equipment, now more than 50 Kazakh citizens work at that local electrical plant; An Italian filter fabricator transferred technology and brand name to local vessel fabricator for joint participation in Kazakhstan and Central Asia markets tenders; Etc. KPO is looking for Netherlands O&G equipment manufacturers interested in expanding their businesses in Kazakhstan via setting up fabrication yards/manufacturing plants for development of new GWS by themselves or via setting up Partnerships with Local manufacturers for long terms supply to KPO and other O&G operators in Kazakhstan/ CIS KPO jointly with NL Emabassy in KZ could organize Kazakh-Netherlands business workshop in order to introduce Dutch manufacturers with KPO current activities and expansion projects, KPO initiatives on localisation of GWS and opportunities for international companies to set up business in Kazakhstan and work with KPO and other major O&G companies. 7

8 Advantages and Benefits of RoK equipment and materials production in the RoK Advantages: Availability of local production capacities High skilled design, engineering, welding & fitting manpower Optimise delivery time and elimination of malfunctions on-site Significant cost reductions Benefits: For Local companies: o New technology, design techniques, systems appropriate to the specific KPO conditions and the environment, in compliance with the RoK legislation; o New knowledge and experience from international companies practices - HSE, Project management, Quality and Reliability. For International companies: o New market and new business opportunities For Both: o Possibility to expand RoK work/products line for RoK O&G projects as a local JV company o Possibility to supply RoK made products including JV manufactured products to the Customs Union/Eurasian Union market without fees and additional customs clearance. For KPO: o Well developed local based contractors for long term cooperation (ongoing KPO projects, KEP2, KEP3 ) o Guarantee the production compliance with high standards, applicable law and best practices o Development of LC and creation of additional work places due to of expansion of production capacity 8

9 Investment Preferences in Kazakhstan RoK Law on Investments provides to an investor: 1. Incentives for projects (including priority investment projects): Exemption from customs duties on the import of equipment, its components and spare parts, raw materials and supplies. Grants up to 30% of the total investment in fixed assets (land plots, buildings, machinery and equipment etc. 2. Incentives for priority investment projects* Tax exemptions: o Corporate income tax 0% for 10 years, o Land-tax 0% for 10 years, o Property tax 0% for 8 years. Investment subsidies up to 30% for construction and installation works and procurement of equipment after commissioning. 3. Tax and visa stability guarantee: 4. Visa-free travel 5. Customs duties 0% * More details at invest.gov.kz 9