Reserves replacement and exploration

As at 1 January 2019, JSC NC KazMunayGas’s proven recoverable reserves of oil and condensate in place (inclusive of its stakes) are 668 million tonnes. Oil and condensate reserves were adjusted following additional exploration, exploration and the re-estimation of KMG field reserves.

Results for 2018:

The key exploration events for KMG during 2018 were as follows:

• 2D/3D seismic exploration was completed at the Emba-5, 39-С, Karaganda and Zhamansu exploration blocks along with high-resolution seismic exploration at the Uzen-Karamandybas and Kalamkas fields.
• Well drilling was completed at Zhetysu (ZТ-2); Anabai (No.12); Urikhtau East (UE-2), NSV-3, Teren-Uzek East (G-1); Tazhigali (G-1); East Zhanatalap (No.305); Karaton (No.601); Botakhan (No.301); Novobogatinsk West (No.22, 24); and 38 wells for the PKI Group.
• Well drilling has been started at Atambai-Sartobe (No.21); Oimasha (No.36); South Urikhtau (YU-2), Aktobe West (G-1), NE Dosmukhambetov (G-2) and Baitobearal (G-10).
• Regional geological surveying and Kazakhstan sedimentary basin modelling. Work is continuing at the Caspian, Ustyurt-Buzachi, Mangyshlak and South Turgai basins.
• Joint work has been started together with Kazakh Ministry of Energy and Geology Committee to explore poorly studied basins in Kazakhstan to make the state exploration research programme. The project is due to be completed in 2019.
• Data rooms have been established for KMG licence area to take on potential investors.
• An audit of reserves has been made according to the international SPE-PRMS system

Potential for additional field exploration

Detailed additional exploration programmes have been developed. Therefore 11 fields were selected (EMG, KTM, OMG and MMG). Exploration and wellwork plans have been made, expected costs and reserves increment following the implementation of those plans have been estimated for the period between 2018 and 2025.

Regional exploration potential

Since 2016, JSC NC KazMunayGas has been working on the regional surveying of Kazakh sedimentary basins to understand its long-term exploration and resource replacement potential. Deliverables of this work are Kazakh sedimentary basin models that have been built. Based on these models new promising targets have been identified for which subsoil use rights will be obtained.

The main advantages are:

• a regional understanding of tectonic and sedimentary processes
• a detailed study of oil and gas bearing systems to diversify exploration risks
• new promising projects as the basis for ensuring stable hydrocarbon growth

Work on the main sedimentary basins has led to the completion of:

• regional structural models covering 30% of the territory of Kazakhstan
• tectonic and sedimentary models for the Mangyshlak, Ustyurt-Buzachi and Caspian sedimentary basins
• 1D-3D modelling of oil and gas bearing systems at the Mangyshlak sedimentary basin
• a portfolio of potential projects

Subsidiaries of JSC National Company “KazMunayGas” transported about 61 million tons by major pipelines and 7 million tons by sea transport in 2015.

Oil transportation by major pipelines is performed by the subsidiary under the system of KazTransOil JSC (total length 5.4 thousand km). Oil sea transportation is carried out by the subsidiary NMSK Kazmortransflot LLP, which possesses 6 carriers with the total deadweight of 12,000 – 13,000 tons on the Caspian Sea and 2 carriers of “Aframax” type on the Black Sea.

For the moment, the main operative export routes of raw hydrocarbons in the Republic of Kazakhstan are as follows:

• Atyrau-Samara pipeline
• Caspian Pipeline Consortium;
• Atassu-Alashankou pipeline;
• Aktau sea terminal.

The largest amount of Kazakhstan oil in 2015 was transported by the Caspian Pipeline Consortium – 38 million tons and by the Atyrau-Samara pipeline – 15.7 million tons. 11.8 million tons were transported in China direction.

Transport infrastructure

The total length of Kazakhstan's gas transportation system is more than 30 thousand kilometers of gas distribution networks, more than 15 thousand kilometers of main gas pipelines, 56 compressor stations with 316 gas compressor units, 3 underground gas storage tanks. Commercial gas is delivered to over 7 million customers within the country. Based on the principles of multi-vector hydrocarbon supplies to domestic and foreign markets, Kazakhstan seeks to develop all economically profitable routes for transit and export deliveries of commercial gas. At the same time, it is important to maintain a coherent energy policy with certain countries as transit and export routes pass through their territories. Gas transmission infrastructure of the Republic of Kazakhstan consists of the following pipelines:

1. “Central Asia Center” MP with the capacity of 60,2 bn. m3/year, with the length of 3962 km (operator “Intergas Central Asia” JSC);
2. “Bukhara-Ural” MP - capacity of 8,0 bn. m3/year, the length of 1 576 km (operator -“Intergas Central Asia” JSC);
3. “Orenburg – Novopskov” MP – carrying capacity of 14.6 bn. m3/year, the length of 382 km (operator “Intergas Central Asia” JSC);
4. “Kazakhstan-China” MP (А and В lines) – capacity of 30,0 bn. m3/year, length of 3 909 km (operator “Asian gas pipeline” LLP);
5. “Zhanaozen-Aktau” MP – carrying capacity of 2,8 bn. m3/year, length of 432 km (operator “KTG-Aimak” JSC);
6. “Beineu-Bozoi-Shymkent” MP – 2,5 bn. m3/year, length of 1 454 km (operator “Intergas Central Asia” JSC, under construction);
7. “Bukhara gas-bearing area – Tashkent – Bishkek – Almaty” - 5,8 bn. m3/year, length of 1 597 km (operator “Intergas Central Asia” JSC).

The above-mentioned gas pipelines allow carrying out international transit of Turkmen and Uzbek gas through Kazakhstan in the direction of Russia and China. The volume of international gas transit through the territory of the Republic of Kazakhstan in 2014 amounted to 78,6 bn. m3, within this the share of Russian gas amounted to 49,3 bn. m3, Turkmen gas – 25,6 bn. m3, Uzbek gas – 3,7 bn. m3.

Currently, “KazTransGas” JSC (through subsidiaries – “KazTransGas-Aimak” JSC, “KazTransGas-Almaty” JSC) delivers gas to consumers in Almaty city, Akmaty, Atyrau, Aktobe, East Kazakhstan, Zhambyl, West Kazakhstan, Kostanay, Kyzylorda, Mangistau and South Kazakhstan regions.

In accordance with the Program for the development of oil and gas sector of the Republic of Kazakhstan for 2010-2014, approved by the Government Resolution No 1072 dated 18.10.2010, at all three oil refineries of the Republic of Kazakhstan investment projects of development and modernization are being implemented. 

Modernization of plants will allow replacing obsolete and worn-out equipment, improve the quality of petroleum products corresponding to Euro-4 and Euro-5 standards, increase the production of light oil products up to 77% with an increase of refining depth up to 87-90%, reduce harmful effects on the environment. As a result of reconstruction and modernization, the processing capacity of crude oil will amount to 18.5 million tons per year, base products will appear, and diesel fuel will comply with environmental standards of Euro-5 quality.