Region • 26 July, 2018

Working trip to West Kazakhstan region: Bakytzhan Sagintayev visits large industrial enterprises

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July 26 on behalf of the Head of the State, Prime Minister Bakytzhan Sagintayev arrived with a working trip to the West Kazakhstan region to get acquainted with the implementation of the President's Addresses "Third Modernization of Kazakhstan: Global Competitiveness", "New Opportunities under the Fourth Industrial Revolution," the Five Social Initiatives, as well as state and sectoral programs, reports

The first object in the working trip schedule was one of the largest gas producing enterprises in the world — the Karachaganak oil and gas condensate field, which occupies an area of over 280 square kilometers. Production indicators make up about 45% of the total gas production in the republic and about 16% of the total production of liquid hydrocarbons, and the total estimated reserves exceed 2.4 billion barrels of condensate and 16 trillion cubic feet of gas.

During the visit, Prime Minister Sagintayev got acquainted with the technological process of hydrocarbon production. General Director of Karachaganak Petroleum Operating B.V. Edwin Blom reported on the main performance results of the company. Karachaganak contains 12 billion barrels of liquid hydrocarbons and 57 trillion cubic feet of gas, of which about 11% has been mined to date. Blom informed that in 21 years of Karachaganak’s development, 42% of all production capacities throughout the republic have been fulfilled. This shows great prospects for the further development of the field.

According to him, Karachaganak consistently demonstrates good production, paying special attention to issues of industrial safety, labor protection and the environment.

"Our environmental indicators are at the global level. Very strict environmental safety standards are maintained not only in production, but also on a large scale. For the second year we have been organizing an environmental forum in Uralsk, to which we are collecting not only our employees, but also contractors, in order to discuss the improvement of environmental safety. Because even if today the indicators are good, maybe tomorrow they will not be good enough. The environment is changing,” said Blom.

Sagintayev also heard detailed reports on the installations for expansion and prolongation of the work. Oil is mainly exported via the Caspian Pipeline Consortium’s to the Southern Ozereyevka port in the Black Sea. Another route for the sale of oil is through the Atyrau-Samara pipeline that connects to the transport system of Transneft, which provides access to the Primorsk port and a number of European destinations.

Speaking about the technological modernization of the plant and introduction of the elements of Industry 4.0, the general director informed, by the present moment the shareholders of the consortium have invested over $23 billion in the development field.

The most advanced technologies are used in the development of the field — this allows combining proficient subsoil management with the obtaining of maximum economic profit.

Today there is a highly enthusiastic response to the digitalization plans, which the Head of State have been encouraging. We see the whole range of initiatives that cover security, environmental responsibility, human resources, etc. Karachaganak is already a high-tech enterprise, but digitalization means even more intensively developing innovations, that’s why there is a need to maximize local personnel’s expertize,” Blom said, emphasizing that the support of local producers is also one of the main priorities of Karachaganak.

In addition, the company provides electric energy to the population of the region. For this purpose, there is a gas turbine power plant that produces its own electrical energy for the entire production complex of the field and nearby settlements.

With the continuation of the technological chain of oil and gas processing into fuel, Sagintayev got acquainted at the plant of JSC Condensate. Here, in the framework of the teleconference with the participation of the Head of State, production of gasoline of ecological class K5 was introduced.

Chairman of the Board of JSC Condensate Valery Dzhunussov told about the modernization of the plant, as well as informed about the measures taken to automate and digitize production. In 2017 the plant was modernized with an increase in the capacity of the enterprise to 850,000 tons per year. In addition, in June 2018, an installation for the hydrotreatment of diesel fuel to the ecological class K5 was introduced. In total, more than $200 million was invested in the reconstruction of the plant.

This modernization allowed to cover the deficit of motor fuels in the domestic market of the country, and also increased receipts to the budget of excises and other types of tax payments. In addition, it provides decent income for more than 1,000 residents of the region (employees of the enterprise and their families), creating highly qualified jobs. Since the beginning of operation of new gasoline units, over 80,000 tons of gasoline of the highest ecological class K5 have been sold. About 1 billion tenge of excises were paid to the region's budget for this period.

Implementation of high-octane gasolines and diesel fuel produced at the plant is carried out not only in West Kazakhstan region, but also in nearby areas. In addition, half of the output is exported abroad. For example, vacuum gas oil is exported to Belarus, tar sales are focused on Russia.

West Kazakhstan region is of great industrial importance for the country. The industry of the region is represented by enterprises of oil and gas production, refining of petroleum products, machine building, metallurgy, defense, mining, clothing and food industries. The volume of industrial production in January-June 2018 amounted to 1184.6 billion tenge. The index of physical volume amounted to 98.6% of the corresponding period of 2017. Within the framework of SPIID and the Industrialization Map in 2018, seven projects worth 7 billion tenge are being implemented with the creation of 262 workplaces.

During the working visit, Prime Minister Sagintayev will also visit a number of industrial and social infrastructure facilities, hold a meeting with the region's activists and business representatives on project management issues.

In particular, the construction of the highway Uralsk – Taskala – the border of Russia Ozinki and Kaztalovka – Zhanibek – Bokey Orda will be inspected. These motorways develop the connections of district centers with the regional center. Here, the Prime Minister will discuss the implementation of the state program Nurly Zhol with representatives of Kaztalov, Zhanibek and Bokeyorda districts.

Further, the Prime Minister will travel to Zachagansk to inspect the construction of residential houses under the Nurly Zher program and to familiarize with the implementation of the7-20-25 program.

In the specialized public service center Sagintayev will visually familiarize with process of automation of state services and realization of regional projects of the Digital Kazakhstan state program.

The Prime Minister's working visit will be completed with a meeting with activists and business representatives in the regional akimat, where the issues of project management will be discussed, as well as the results of work for 6 months of 2018, and plans for further execution of the tasks given in the President's Addresses "Third Modernization of Kazakhstan: Global Competitiveness", "New Opportunities under the Fourth Industrial Revolution," and the Five Social Initiatives.

Recall, Bakytzhan Sagintayev makes a series of working trips to the regions on behalf of the Head of State. Earlier, trips to Atyrau, Karaganda, Kostanai, Kyzylorda, Mangistau, South Kazakhstan, Akmola, Aktobe regions took place.

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