Home » today » News » Kazakhstan will produce new oil: the head of KMG told the details

Kazakhstan will produce new oil: the head of KMG told the details

news-id-119980" style="display:inline;">Kazakhstan will have more oil tankers. Also, a completely new production facility may appear in the country. Such plans were voiced by the head of KazMunayGas Magzum Mirzagaliev, reports LS.

He recalled that last year, a joint venture with Abu Dhabi Ports Group (UAE) and Kazmotransflot (Kazakhstan) acquired two tankers Taraz and Liwa, which transport Kazakh oil in the Caspian Sea. Also, since the middle of last year, the national company began transporting Tengiz oil in the open seas.

“Today, a joint pool of KMG/ADP tankers (four Aframax tankers, two of which belong to Kazmotransflot, two more to ADP) is already transporting oil from the Tengiz field from the seaport of Novorossiysk and further around the world,” Mirzagaliev explained.

The head of KMG plans to expand this fleet to 12 tankers. But they still have to be found on the market and ordered, which is what the national company is doing now. As a result, according to the speaker, this will allow transporting at least half of Tengiz oil.

Regarding the completely new production, Mirzagaliev drew attention to the fact that paraxylene, which is produced by the Atyrau Refinery, is completely exported to non-CIS countries. From this product terephthalic acid (TPA) is produced, which later becomes polyethylene terephthalate (PET). The head of KMG drew attention to the fact that PET is used for the production of plastic bottles, sports fabrics, padding polyester, etc.

“We asked ourselves why not process paraxylene in our country, instead of exporting it. Therefore, we began to develop a feasibility study, based on the results of which we will make a decision, I hope, on the construction of such a plant in Kazakhstan,” – he said.

Another plan of the head of KMG is the complete import substitution of polypropylene. Mirzagaliyev recalled that in October last year the plant for the production of this product reached its planned targets (launched in 2022). Since then, constant negotiations have been ongoing with representatives of SMEs who use this product as a raw material.

“Already at the end of last year, the import of polypropylene into Kazakhstan decreased by 42%. We believe that we will completely close it within this year, and imported polypropylene will no longer be imported into the country or will be reduced to minimal volumes. At the same time, our polypropylene is also used for export to different countries: China, Turkey, Europe, Russia,” the speaker said.

Another major petrochemical project is the construction of a polyethylene production plant with the participation of Sibur (Russia) and Sinopec (China). The capacity should be 1.25 million tons annually.

“The necessary corporate approvals are currently underway from the Chinese partner. We expect that the deal will be finalized in the near future. After this, shares in the project will be distributed as follows: 40% – KMG, 30% – SIBUR and 30% – Sinopec,” Mirzagaliev explained .

He added that this plant will consist of two polymerization units (licensors are American companies): one – using Chevron Phillips technology, for the production of high-margin high-tech polyethylene, the second – from Univation, for the production of a more mass-produced product. Each installation will produce 625 thousand tons of polyethylene per year. As for engineering, companies such as the German Linde, the Spanish Tecnicas Reunidas and the Italian Tecnimont and many others are involved.

In the field of geological exploration, according to Mirzagaliev, there will also be many projects, since the subsoil of Kazakhstan is only 24% explored. The country has 15 sedimentary basins, the largest of which is the Caspian. However, according to geologists, there may be even greater discoveries.

Therefore, five sites were identified for study: Mugodzhary in the Aktobe region, Berezovsky in the West Kazakhstan region, several sites in the Mangistau region. Seismic work and interpretation of information on it will be completed this year. Then it is planned to invite private investors for joint geological exploration. A foreign company became interested in one of the sites.

In addition, it is planned to drill three exploration wells. One is at the Turgai Paleozoi site in the Kyzylorda region, equipment is being mobilized (5.5 thousand m according to plans). Work will begin in the middle of this year. Own funds are involved. There will also be deep drilling at the Karaton Podsolevaya structure in the Atyrau and Mangistau regions (5.5 thousand m according to plans). The work is carried out at the expense of the Tatneft company. Together with Eni, it is planned to create a well in the Abay area in the Caspian Sea.

In addition, a joint venture with Lukoil is actively working on the Kalamkas-Sea, Khazar, Auezov project in the Caspian Sea. An operating company was formed in Aktau. First oil production is planned for 2028-2029.

Mirzagaliyev also touched upon the development of the gas industry. According to the national company’s estimates, the potential for production growth could amount to an additional 6.7 billion cubic meters. m of gas per year by 2030, excluding large projects (Tengiz, Karachaganak, Kashagan). Last year, three fields were already launched: Rozhkovskoye in the West Kazakhstan region, Aksai South in the Kyzylorda region and Eastern Urikhtau in the Aktobe region. In addition, the strategy included the Central Urikhtau field with a production potential of up to 900 million cubic meters. m per year, Western Prorva and Kalamkas fields (up to 1.1 billion cubic meters per year).

Speaking about the three refineries, Mirzagaliyev noted that due to past modernizations, Kazakhstan is fully self-sufficient in gasoline and diesel fuel. The production of gasoline increased by 7%, liquefied gas – by 8%, for the first time the output of light petroleum products exceeded 72% (in recent years the average was 66%). The Atyrau Refinery began producing Euro-5 gasoline.

“We can state the success of the measures taken by the government to eliminate the gray export of fuel and lubricants. For example, the revision of prices for AI-92 and diesel fuel led to a decrease in consumption throughout the country, and in border regions – up to 20%. Also in 2023, we began the practice of coloring cheaper diesel fuel for agricultural producers, which reduced consumption by 14%. Previously, part of the diesel fuel intended to support agriculture was illegally exported,” Mirzagaliyev assured.

Moreover, according to the head of KMG, in 2023, due to the measures taken, there were no shortages of fuel and lubricants in the domestic market. Let us remind you that in August the problem of AI-95 shortage arose in the country.

However, according to Mirzagaliev, the transition to a three-year non-stop turnaround period has begun. This will save valuable 30-40 days a year, during which the plants will not be under repair, but will produce petroleum products.

At the same time, as Mirzagaliev admitted, despite the latest modernization and new installations, the Atyrau Oil Refinery has been operating equipment since the 1940s. To solve the problem, a program to improve operational efficiency until 2027 is being implemented. As part of this program, key equipment in the old part of the plant will be replaced. All technological installations will also be audited.

In addition, a gas turbine power plant will be built to reduce the risk of accidental combustion into the atmosphere.

As a result, the volume of raw material processing will increase from 5.5 million tons to 6.7 million tons, and the production of light petroleum products will reach 77%.

A hydrogen production unit and a diesel dewaxing unit are being built at the Pavlodar Petrochemical Plant. This will increase the production of jet fuel from 190 thousand tons to 240 thousand tons. Production of winter diesel fuel will also begin in the amount of about 155 thousand tons.

The Shymkent oil refinery is planned to be expanded twice, to 12 million tons. A preliminary feasibility study is being developed jointly with CNPC.

Another Chinese partner plans to expand the production capacity of the Aktau bitumen plant from 500 thousand tons to 750 thousand tons. A working draft is being developed. Construction is scheduled to begin in 2024.

Returning to the fields, Mirzagaliev spoke about the initiated rehabilitation project for Uzen and Karamandybas (Ozenmunaigas), which have the potential to increase oil production.

“The fields are complex, there is a huge social burden, and if we want to save jobs, we need to maintain oil production at a stable level,” explained the head of KMG.

However, in recent years, production at these fields has been declining. In this regard, the company’s mineral extraction tax was reduced. The money saved will be used for the rehabilitation project, which will be co-financed by the parent company. The project involves drilling horizontal wells, using modern equipment, changing water injection technologies, etc.

Production in Uzen was also affected by power outages in the Mangistau region.

“Oil at the Uzen field freezes at above-zero temperatures: +33 degrees Celsius. Therefore, when there is a power outage, everything stops and freezes. Then, it takes a certain time to start the field. To solve the problem in Zhanaozen, construction of a hybrid power plant (wind, solar and gas) with a total capacity of 247 MW together with Eni. This will help stabilize our production,” the speaker said.

As a result of the rehabilitation project, production volume should reach 5.2-5.5 million tons of oil per year.

In the Kyzylorda region, where oil production is also declining, an exploration project has been launched in Turgai Paleozoic. There are also plans to begin exploring the coastal area of ​​Karazhanbas.

The head of KMG also spoke about strikes by workers of oil service companies who are demanding to be hired. Mirzagaliev once again noted that this is impossible, since there are queues for employment in the KMG subsidiary.

In the field of green energy, according to Mirzagaliev, a feasibility study for the 1 GW Mirny wind power plant project with Total Eren is being completed.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.