Future of innovative technologies

February 26. Kazpravda

By Rysty Alibekova

Future of innovative technologiesTechnology policy should be intensified in oil and gas sector and the rate of oil extraction should be increased by 5-7%.

– In 2013 the National Company KazMunaiGas accomplished much work and achieved positive operating and financial results. It is necessary to introduce new approaches to develop oil and gas sector of the country, – said Prime Minister Serik Akhmetov yesterday at the enlarged meeting of the board of the NC KazMunaiGas on the results of the company’s work in 2013 and plans for 2014.

The company started improving the organizational structure to meet the latest international standards and the PM instructed to complete the process in 2014.

Reporting on the KMG’s activities in 2013, Chairman of the Board of JSC NC KazMunaiGas Sayat Mynbayev underlined that majority of the target indicators was improved. Thus, in 2013 the volume of oil and condensate production was 22.6 million tons, which is about 6 % more than in 2012. Gas production increased by 12 % and reached 2,929 billion cubic meters. At the same time, the volume of oil transportation through KazTransOil reached 67.2 million tons. Volume of natural gas transportation made up 110,135 billion cubic meters in 2013.

In 2013, oil refinery plant KazMunaiGas refined more than 16 million tons of oil. At present, reconstruction of Shymkent and Pavlodar refineries is underway. A complex for production of aromatic hydrocarbons at Atyrau refinery is being constructed. Production of bitumen in Mangystau region has been launched.

Operating income increased by 10 % and reached KZT 3 trillion 257 billion. Net income in 2013 grew by nearly 24 % and amounted to KZT 456.8 billion. In 2013, KMG paid over 622 billion tenge of taxes and other payments to the republican budget.

Development of local content is a focus area too. Total procurement by KMG group of companies in 2013 amounted to KZT 1 trillion 259 billion. At the same time local content in the procurement reached 66% or 833 billion tenge.

In order to eliminate disparities in wages of employees, in 2013 KazMunaiGas elaborated a project on a unified pay system, as well as a reference book of blue-collars and a reference book of white-collars in “Exploitation and extraction of oil and gas” that are the grounds for formation of the uniform wage rate scale and salary schemes.

In 2013 the group of KazMunaiGas companies spent about 23 billion tenge on social projects, sponsorship and charity. A number of major projects were implemented (construction of roads in Atyrau region, improvement of the neighborhood Orken, construction of the Wedding Palace in Zhanaozen and many others).

Abat Nurseitov, CEO of JSC Exploration and Extraction KazMunaiGas, Daniyar Tiyesov and Kayrgeldy Kabildin – Deputy Chairmen of JSC NC KazMunaiGas reported on the results of financial and economic activity.

Summing up the meeting, the PM focused on priority directions of the national company’s development, in particular, the regular growth of exploration volumes, efficiency of exploration and development works, use of modern geological and geodetic methods.

– This work should be associated with exploration of deep horizons of the Caspian Basin. In order to ensure efficiency of these works, the MINT, RK MOG and KMG are tasked to increase investment attractiveness of exploration, – S. Ahmetov went on.

Speaking about oil extraction, the Prime Minister stressed the need to introduce innovative technologies in drilling and production areas.

– The era of “easy” oil is over, – he said. – We need to study foreign experience and implement it in practice. All of this will bring additional profit to subsoil users and additional revenues to the state budget.

Besides, S. Ahmetov gave relevant instructions to the authorized bodies and KMG on refining, gas supply, implementation of major investment projects, development of oil related services. In the end the PM expressed hope that KazMunaiGas will successfully implement the large-scale tasks and be among the leading oil and gas companies of the world.