UNECE Energy Week “Investing in Energy Security” 16th Session Committee on Sustainable Energy
NationalNational CompanyCompany ““KazMunayGasKazMunayGas ””:: ContributionContribution toto EnergyEnergy SecuritySecurity
Palais des Nations, Geneva 1 28 November 2007 «Currently we should focus on diversification and ensure of sustainable routes of energy resources supply from Kazakhstan to global markets».
President of the Republic of Kazakhstan Nursultan Nazarbayev
Main components of JSC NC “KazMunayGas” activity in global energy security:
I. Development of hydrocarbons resource base
II. Expansion of existing transportation routes and creation of a new ones
III. Development of refining and oil chemistry in compliance with international demands
IV. Implementation of modern standards of corporate governance
2 Position of Kazakhstan in world oil & gas industry
World’s oil reserves by countries, bln. bbl / bln. tons 264 36,3
138 18,9 115 15,5 102 98 14,0 13,0 80 79 11,5 10,9 42 38 36 30 5,5 5,5 17 16 4,9 3,7 15 14 2,4 2,2 12 12 10 9 7 2,0 1,7 1,5 1,7 1,1 1,2 1,0 Iran Iraq UAE USA Brazil Libya Qatar China Kuwait Angola Russia Nigeria Mexico Algeria Algeria Norway Canada Venezuela Azerbaijan Azerbaijan Kazakhstan Saudi Arabia Saudi Kazakhstan: 9th place among all countries of the world 2nd place among non-OPEC countries 3 DynamicsДобыча нефтиof main иindicators газового of конденсата the JSC NC “KazMunay в КазахстанеGas”
Oil and gas condensate production
Thousand bbl / day 400
343 290 300 258 259 152 226 99 213 79 71 200 68 65
100 179 188 191 191 148 158
0 2002 2003 2004 2005 2006 2007 (plan)
JSC NC “KazMunayGas" JV share
Unit of Indicator measurement 2002 2003 2004 2005 2006 2007 Oil and gas condensate Thousand 10 646 11 327 12 886 12 966 14 503 17 162 production tons
4 Transit & transportation hydrocarbon potential of Kazakhstan
Diversification of oil transportation routes
Primorsk RUSSIA
Butinge Lithuania Gdansk Belarus
Atyrau-Samara Eskene-Kuryk ASTANA GERMANY POLAND UKRAINE Atasu-Alashankou KAZAKHSTAN Atasu CPC Atyrau Eskene Kenkiyak Kumkol ROMANIA Tengiz Kashagan Alashankou Makhachkala Novorossiysk Aktau Kenkiyak-Kumkol BLACK SEA BULGARY Kuryk Uzbekistan Supsa Kyrgyzstan BTC Baku TURKEY KCTS Turkmenistan CHINA Ceyhan Neka
MEDITERRANEAN IRAN
Existing routes
Planned routes
5 Transit & transportation hydrocarbon potential of Kazakhstan
Diversification of gas transportation routes
Russia
Central Asia - Center
Bukhara - Ural "Soyuz" (Orenburg - Novopskov) Kazakhstan
Makat - Northern Caucasus
To Europe Kazakhstan - China
Transcaspian Nabucco Gazli - Shymkent Pricaspian Bukhara - Tashkent - Bishkek - Almaty Turkmenistan Baku - Tbilisi - Erzurum
Existing routes Planned routes
6 Expansion of business geography
Acquisition of foreign assets
Acquisition of the assets of JSC “Tbilgazi” The enterprise is the operator of gas supply in Tbilisi, Georgia Total length of gas pipelines is 2 414 km.
Creation of a JV on the basis of the Batumi oil terminal This terminal is the first foreign oil transportation asset of the Republic of Kazakhstan with a direct access to the world ocean
Creation of a JV with OJSC “Gazprom” on the basis if the Orenburg Gas Refinery Agreement between the Government of the RK and the Government of the RF on cooperation In creation of a business entity on the basis of the Orenburg Gas-Processing Plant of 3 October 2006. Agreement on conditions of transportation and supplies of processed gas to the domestic market of the RK between JSC “NC “KazMunayGas” и ОJSC “Gazprom” of 3 October 2006.
7 Refining and petrochemistry development
Refining capacity
The 1 st stage of reconstruction of the Atyrau Refinery was completed in 2006 . Output of a wide range of high quality products answering to the European standards was mastered.
This year KazMunayGas has acquired the right of parity management of the Shymkent Refinery. It is planned to implement the up-to-date production standards.
8 Refining and petrochemistry development
Acquisition of 75% share of the Rompetrol Group NV
In August of this year, KazMunayGas acquired 75% of the shares in The Rompetrol Group NV. The assets of this company include: - 2 refineries; - 630 FSs in seven European countries.
9 Refining and petrochemistry development
Petrochemistry projects in Kazakhstan
The first petrochemical complex in Atyrau oblast Products: polyethylene, polypropylene Capacity: 800 thousand tons of polyethylene, 400 thousand tons of polypropylene Location: Karabatan station in Atyrau oblast Completion time: 2012
Production of road asphalt Products: road asphalt Capacity: 420 thousand tons Location: Aktau Plastic Plant in the city of Aktau Completion time: 2009
Aromatic Hydrocarbons Complex Products: basic petrochemical stocks – benzene, paraxylene Capacity: 130 thousand tons of benzol, 500 thousand tons of paraxylene Location: Atyrau Refinery (the city of Atyrau) Completion time: 2011
Total Investments – USD 6 bln.
10 Implementation of effective forms and methods of corporate governance
Implementation of international standards of financial reporting
Compliance with ISO 9001, ISO 14001 international standards and OHSAS 18001 specifications
Gaining of investment rating reflecting the efficiency and transparency of activity
Entrance to the international stock market
Balanced Scorecard implementation
Implementation of best practices in the field of corporate governance
Constant professional development of specialists
11 Environmental protection
Corporate system of ecological monitoring
Main goals of the corporate system of ecological monitoring: Obtaining updated information on the current environmental status for making adequate managerial decisions Creation and updating of data base on environmental status Reporting automatization
EP & LP - IT Dept. Corporate system of ecological Contract Dept. monitoring of JSC NC “KazMunayGas”
Reports to . aroused a great interest of the State bodies UNECE, which positively estimated Reports Interpretation Data Reports an approach of the Company Base Reports Reports to organization of the internal system Monitoring Monitoring data DDZ acceptance Data of ecological governance, Отчеты Операторов KazGeoKosmos development of the subsystem JV’s - PSA - departments. Dep-s KMG EP KTO ICA KMTeniz of ecological monitoring of the corporate geological informational Reports Reports system with great perspectives of its Operator Operator implementation at the companies РД КМГ РД КМГ Instrumental data РД КМГ of other countries.
Objects of monitoring
12 Thank you for your attention!
Contact info:
JSC «National Company «KazMunayGas» 22, Kabanbay Batyr Ave, Astana, 010000, Republic of Kazakhstan tel.: +7 (7172) 97 61 01 fax: +7 (7172) 97 60 00, 97 60 01 e-mail: [email protected] http://www.kmg.kz
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