Kazakhstan with rich history of oil production is today one of the largest oil producers worldwide. In Kazakhstan oil production started at the end of the XIX century, much earlier, than in Venezuela, Iran, Kuwait, Mexico, Norway, and Saudi Arabia. The history of Kazakhstan’s oil was launched by the first oil fountain in 1899 on Karashungul field. It followed discoveries of new fields such as Dossor (1911), Makat (1915) and others. At first oil production was implemented by the open flow method, but as the wells were exhausted oil was produced through a deepening constructed at the mouth of a well.
In early 1990s it became obvious that large discoveries capable to sharply raise volumes of developed oil and gas reserves in the republic are possible only through development of the water area of the Caspian Sea. In December 1992 Kazakhstan announced the intention to start exploration work on the Caspian Sea. In the second half of the same year a group of Kazakhstan’s specialists developed the State Program of Development of the Kazakhstan Sector of the Caspian Sea”. Kazakhstankaspiyshelf state company was established to implement the program of operations on geological and geophysical research and development of oil and gas fields in the water area of the Caspian Sea in line with the executive order of the Government of the Republic of Kazakhstan #97 dated February 13, 1993.
On December 3, 1993 the Government of Kazakhstan signed the international agreement with foreign companies Shell (Holland), Statoil (Norway), Mobil (USA), BP (England), Total (France), Agip (Italy) on creation of an international consortium with Kazakhstankaspiyshelf as operator. In 1994-1996 seismic, ecological, infrastructure and other researches were performed offshore on the area of over 100,000 km2. Seismic works enabled to study the regional structure of the Kazakhstan sector of the Caspian Sea and revealed a number of local traps, including Kashagan, Kurmangazy, Kalamkas-sea, etc. Certain part of them was specified for conduction of exploration drilling.
In 1997 the Government of Kazakhstan signed a production sharing agreement (PSA) with the OKIOC Consortium (Offshore Kazakhstan International Operating Company) and exploration drilling was launched in 1999.
In July 2000 the Consortium announced presence of oil on Eastern Kashagan in the well #1. President of Kazakhstan Nursultan Nazarbayev said: “Today is a happy day for the Kazakhstan people. The discovery of oil on Kashagan is a good support to our independence, future prosperity and improvement of life of our people. Great expectations of Kazakhstan people have justified themselves”.
After Eastern Kashagan there were discoveries of Western Kashagan, Kalamkas-sea, Kayran, Aktoty and Southwest Kashagan. The discovery of Kashagan field enabled to increase oil reserves in the republic by 35%. Preparatory and prospecting works are now underway on Kashagan and some other fields of the Caspian Sea.
Minster of Oil and Gas of RoK Sauat Mynbayev believes Kazakhstan will be completely provided with export capacities if already existing plans are implemented. For example, he said that the CPC Expansion Project had been already launched. CPC will be able to transport 52 million tons of Kazakhstan oil per annum as early as in the first quarter of 2015. Expansion will be performed in three stages and the year 2015 is set as the final period.
Customs Union countries reached agreement on national mode for oil transportation including export.
“We reached agreement on national mode for oil transportation tariffs including export. Taking into consideration that we are an oil exporting country depending on transit opportunities, it is an exceptional stabilizing factor for supply of Kazakhstan oil to external markets”, he said.
The Minister noted that the countries had also agreed that Kazakhstan would fully (100%) provide its domestic market with oil after 2014. “This issue has already been raised this year because of different tax regimes in our countries. Besides, no unification of payment and oil export duty will be carried out”, S.Mynbayev said.
“According to the second option – we will conduct free trade of oil products without any duties. The third position envisages switch to single technical regulations and standards in this sphere”, the Minister concluded.
Kazakhstan continues considering different options for providing gas supply to north-east and central regions.
“The entire north-east and central Kazakhstan are not provided with gas. The explanation is rather simple: gas was supplied in gas production areas such as West Kazakhstan and areas where the main gas pipeline system has been historically available - south of Kazakhstan, Kostanay region. Considering current distance and population density it may be economically irrational to provide gas supply to the north-east of the country by means of the main gas pipeline.
“Nevertheless, we continue considering different options with the purpose to provide gas supply to northern and central regions”, the Minister said.
He noted the commencement of the key project Beyneu-Bozoy-Akbulak in the republic. It will connect west gas producing regions with the main domestic consumption market – with the south of Kazakhstan which has a ready gas consumption infrastructure”, S.Mynbayev added.
The gas pipeline is built on parity basis with the Chinese side. The completion of the line pipe is scheduled for 2013. The capacity will total 5 bcm per year at the initial stage. But it may easily be increased up to 15 bcm at the expense of construction of compressor units, the Minister concluded.
“According to confirmed data, today Kazakhstan holds the 9th position on the volume of oil reserves globally. This is the information of independent sources. These are proved reserves. I assume that we have a ground to count on growth of the volume in future considering evaluation of our geological reserves and large-scale geological survey work under development”, S.Mynbayev said.
The Minister informed that oil and gas production increased more than 3 and 5 times (respectively) in Kazakhstan over the years of independence. The government expects considerable growth of hydrocarbons in future, S.Mynbayev noted.
In the meantime, the Minister called numbers on the size of commodity gas production. According to the Minister, the volume is inconsiderable.
“The thing is that our gas is mainly associated. It means that most part of extracted gas is injected back into the formation in order to recover more liquids. However, this gas may be extracted at further stages. Secondly, the volumes of its production may be easily increased in case commercial conditions of its sale changes”, S. Mynbayev clarified.
The implementation of the second stage of development of Kashagan oil-gas field is still uncertain. “Yes, there is still an uncertainty regarding the following, second stage”, he said. “I assume that the project may turn out more successful in case of tight cooperation of contracting companies, an authorized body, conformity of offered solutions to standards of the best global practice and consideration of mutual interests”, the Minister says. He noted that the expected term of launch of commercial production within the framework of the project was the same (December 2012 – June 2013).
The Minister reminded that the first stage of this project envisages production of about 370,000 barrels of oil per day with possible increase up to 450,000 barrels. The second stage of development of Kashagan envisages transportation of oil through the Baku-Tbilisi-Ceyhan pipeline.
Kashagan is Kazakhstan’s giant oil gas field located in the north of the Caspian Sea. According to the data of the project operator, general oil reserves total 38 bln of barrels or 6 bln tons. Extracted reserves comprise about 10 bln barrels. The big gas reserves in Kashagan reach more than one trillion cubic meters.
The date when oil production on Kashagan was to commence rescheduled several times. The consortium of foreign companies led Italian ENI promised to ensure commercial production in 2008.
According to the data of KazMunayGas, the company plans to invest 8 bln dollars into the Kashagan project till 2014. The investments of the company in different projects will total $20 bln during the same period.
During the coordination of time displacement of commercial production Kazakhstan increased its share in the project from 8% up to 16.8% and insisted on royalty payment which had not existed before. Another memorandum was signed late in June. As the result, the term of commercial oil production on Kashagan field was postponed to 2013.
Kazakhstan gained 10% of Karachaganak project. The corresponding agreement was signed in the government of Kazakhstan on December 14, 2011.
“As far as interests of Kazakhstan are concerned, we obtained 5% in exchange for settlement of all claims of government bodies, bought another 5% to the sum of 1 bln dollars tax exclusive. Thus, KMG becomes a project participant with 10%”, Minister of Oil and Gas Sauat Mynbayev said.
The parties agreed to apply a mechanism of control over expenditures, it is to allow the Kazakhstan side to raise control over the size of expenditures appearing during implementation of large investment projects on the field. In order to ensure further mutually beneficial cooperation in implementation of the Karachaganak project Kazakhstan and the consortium reached agreement on maximal clarity on taxation issues, customs fees and reimbursement of expenses. Kazakhstan also confirmed the stability of the contract with the Karachaganak consortium.
“As you know we faced disputable moments regarding the customs fees. The consortium will not pay these customs fees. However, it does not mean the reduction of income flow into the budget and national fund of RK”, the Minister clarified.
Oil-gas condensate field is located in the West-Kazakhstan region not far from the city of Aksay. It was discovered in 1979. Karachaganak with 1.2 bln tons of oil and condensate reserves as well as over 1.35 trillion cubic meters of gas is one of the biggest oil-gas condensate fields in the world. About 49% of all gas and 18% of all oil produced in Kazakhstan falls to the share of Karachaganak.
Calculation of reserves of Khazar field started. Apart from this, the Ministry of Oil and Gas of RK considers the issue of expansion of Tengiz oil-gas field. A future development project with possible increase of production volumes from present 26 mln tons up to 36 mln tons are under development on basis of the Tengiz project.
First exploration wells (Shell Sea structure) were drilled within N block section where participation share of KazMunayGas totals 51%. First confirmations about hydrocarbons available there were obtained. Exploration work is carried out in full scope with the working program.
N block is located in the south part of the Kazakhstan section of the Caspian Sea and covers an area of 7,625 square km. The nearest distance from the center up to the shore totals 75km. The north-east border links to the territory of Mangistau region.
Oil-gas potential of the area is estimated high enough due to the discovery of Khazar and Auezov fields. The results on Khazar and Auezov have already been reached. The work on exploration of Naryn structure and assessment of Auezov will be continued.
Considering high potential of fields, participants of projects implemented in Kazakhstan aspire toward accelerated commissioning of development of fields.
Big work on main oil pipelines’ system development aiming at growth of competitiveness, reliability of existing and construction of new capacities on oil transportation and transshipment as well as creation of the necessary contractual framework in order to ensure transit of oil along the territory of transit countries has been performed.
New oil pipelines Kenkiyak-Atyrau, Alibekmola-Kenkiyak, North Buzachi-Karajanbas, Atasu-Alashankou were launched, capacities of Atyrau-Samara oil pipeline, Aktau port and a number of loading and unloading terminals were also enlarged.
Agreements were signed with oil pipeline system operators such as Transneft JSC, Ukrtransnafta JSC, Gomeltransneft, and Novopolotsk enterprise dealing in oil transport DRUZHBA.
The launch of Tengiz-Novorossiysk oil pipeline of the Caspian Pipeline Consortium (CPC) in 2001 was an important event in the history of oil industry of Kazakhstan.
As a number of companies enjoying rights for carrying capacities of CPC did not have a direct access to this main KazTransOil JSC commissioned facilities in its Atyrau oil pump station for transshipment of hydrocarbon crude (supplied by Uzen-Atyrau, Kenkiyak-Atyrau, Martyshi-Atyrau and a railroad) into the system of CPC. The volume of oil transshipment into CPC pipeline through the system of JSC totaled 4.5 mln tons in 2008.
Kenkiyak-Atyrau (6 mln tons annual capacity) and Alibekmola-Kenkiyak (3.6 mln tons annual capacity) oil pipelines were launched in 2003 in order to ensure transportation of growing volumes of oil produced in Aktyubin region.
The launch of Kenkiyak-Atyrau oil pipeline enabled to substantially increase the volumes of Aktyubin oil transportation in the direction of Atyrau oil pump station. Besides, the shippers received a more reliable and economically beneficial alternative for railroad transportation. Kenkiyak-Atyrau oil pipeline project was realized by NWPC Munaytas JSC in which KazTransOil JSC and CNPC International share is 51% and 49% respectively.
KazTransOil JSC launched an oil-loading point Shagyr (with the capacity of 3 mln tons per year) in order to diversify delivery routes of Kumkol oil. Shagyr oil loading rack performs loading of Kumkol oil into railway cisterns throughout a year. Low oil transshipment tariff as well as a non discriminatory access principle is one of the benefits of the mentioned rack. It is noteworthy that the demand for use of this rack is still actual and growing.
Supply pipeline OGPS North Buzachi – Karajanbas OPS was built and commissioned due to the planned growth of oil production at North Buzachi field on May 31, 2006. The pipeline met the growing demand for oil transportation from North Buzachi field along the system of main oil pipelines of KazTransOil JSC with further export.
The launch of Atasu-Alashankou oil pipeline was one of the most important events of 2006, a big stage in implementation of multiple-vector strategy of oil transportation. It provided a reliable and economically efficient direction of oil supply for oil companies to the perspective and rapidly growing market of China. Besides, the oil pipeline enables to operate a transit potential of Kazakhstan for transportation of Russian oil towards China. The project was realized by Kazakhstan-China Pipeline LLP, a joint venture established on parity basis (50 to 50) by KazTransOil JSC and CNODC, a daughter company of the Chinese National Petroleum Company.
In order to ensure reliable and stable oil reception and transportation along the Atasu-Alashankou system KazTransOil JSC introduced a number of activities on modernization and reconstruction of the East branch facilities located at Priirtyshsk-Atasu, Karakoin-Atasu area. The same activities were also carried out on Atasu oil pump station itself.
Oil produced at Central Kazakhstan fields is supplied to China along the Atasu-Alashankou oil pipeline. Oil supply from the west regions of Kazakhstan is also possible. Therefore, an oil-cargo pier for receiving of oil from railway cisterns and its further transshipment into the Atasu-Alashankou pipeline was built.
Caspian port of Aktau where KazTransOil JSC carries out transshipment of oil supplied by a pipeline and railroad into tankers is still an important export direction for Kazakhstan oil companies.
Today Azerbaijan and Kazakhstan continue discussing the issue of creation of the Caspian oil transportation system aimed at oil export from Kashagan-2 field to the world markets through Baku-Tbilisi-Ceyhan oil pipeline.
Natig Aliyev, Minister of Industry and Energy of Azerbaijan, said in Baku the other day that the issue of creation of oil transportation system had been discussed at the VII session of Azerbaijani-Kazakhstan intergovernmental commission held in Astana.
“The first stage of the system envisages transportation of 0.5 mln barrels per day or 23 mln tons of oil per year. In future, its capacity could be increased up to 35-36 mln tons per year, Natig Aliyev said.
In general, big reserves of hydrocarbons and the branched network of pipelines will ensure development of oil industry of Kazakhstan for many years ahead.
- DEVELOPMENT OF OIL-GAS INDUSTRY OF kazakhstan: MAJOR STAGES
Development stages of oil-gas industry
1991 – First changes in energy sector management in Kazakhstan. The control over the sector passes to Ministry of Energy and Electrification of the Republic of Kazakhstan and State Committee of RoK for Geology and Subsoil Protection.
July 17, 1992 – Republic of Kazakhstan and Oman Sultanate sign first framework Agreement on creation of the Caspian pipeline consortium (CPC). Kazakhstan Company Munaygaz (later National Oil Company Kazakhoil) and Oman Oil Company (OOC) represent interests of the parties. Russia joins the agreement a month later. The pipeline is designed to transport oil from Tengiz field to the Novorossiysk (Russia) Black Sea port.
1992 – Kazakhstan and Agip (Italy) and British Gas (Great Britain) companies sign an agreement on development of Karachaganak oil-gas condensate field.
February 4, 1993 - The first joint venture in the oil and gas industry of the republic - Kazakhstan-Turkish enterprise KazakhTurkMunay - was created.
March 1993 - KazakhstanCaspianShelf (KCS) founded in accordance with a resolution of the Government concerning exploration of the Kazakhstan sector of the Caspian Sea.
April 6, 1993 – Kazakhstan government signs a long-term (40-year) contract with American Company Chevron on creating the international consortium for conduction of geological exploration in the Kazakh shelf of the Caspian Sea.
December 3, 1993 - The consortium joining 7 foreign companies Agip, British Petroleum, Statoil, British Gas, Mobil, Total, Shell) and KazakhstanCaspianShelf (operator) sign an agreement on a three-year geological exploration of oil potential of the region. Seismic exploration helped to explore the regional structure of the Kazakh sector of the Caspian Sea and revealed a number of local traps, including Kashagan, Kurmangazy, Kalamkas-sea and others. Certain part of them was specified to conduct exploration drilling.
1993 – Establishment of KazGerMunay Kazakhstan-German enterprise, the biggest enterprise of the Republic with participation of Germany.
June 13, 1994 – According to the order of President of the Republic of Kazakhstan Nursultan Nazarbayev the Ministry of Energy and Fuel Resources of Kazakhstan was divided into Ministry of Energy and Coal Industry and the Ministry of Oil&Gas Industry.
July 1994 – Kazakhstan presents a draft convention on the legal status of the Caspian Sea and in it the views on issues concerning development and production of natural resources of the Caspian Sea are presented.
End of 1994 – Government of Kazakhstan adopts program on oil-gas complex development in Kazakhstan.
March 1995 – Production sharing agreement on Karachaganak field between the Republic of Kazakhstan (represented by Kazakhgas), Agip Company (Italy), British Gas (Great Britain) and Gazprom (Russia) is signed.
July 28, 1995 – Decree of the President of Kazakhstan with the force of Law “On Oil” is adopted. One of the main goals of the law is to promote attraction of foreign investments into development of oil-gas resources of the republic.
October 4, 1995 – Government of the Republic of Kazakhstan approves feasibility study for the construction of Aksay-Kostanay-Kokshetau-Akmola gas pipeline with the length of 480km and volume of 4.7 mln cubic meters per year.
1995 – Government of the Republic of Kazakhstan confirms the map of blocks and hydrocarbon fields of Kazakhstan.
April 1996 – Framework agreement on construction of the oil pipeline with carrying capacity of 67 mln tons (along the Tengiz-Tikhoretsk-Novorossiysk (CPC pipeline) between Kazakhstan, Russia, Oman and the Consortium of foreign companies) is signed. According to this agreement Russia owns 24%, Kazakhstan 19%, Oman 7%, the remaining part is distributed between 8 oil companies.
July 9, 1996 – Agreement about principles of cooperation of littoral states of the Caspian is signed.
August 1996 – International consortium KCS completes topographical survey of Kazakhstan oil fields in the Caspian shelf. The potential of the region is estimated between 26 up to 60 bln barrels of oil.
March 8, 1996 – Inter-governmental agreement about transportation of Caspian oil along the territory of Georgia (through Baku-Supsa route) is signed.
March 4, 1997 – The Ministry of Oil-Gas Industry of Kazakhstan is abolished and the national oil-gas company Kazakhoil is created. All rights for participation of Kazakhstan in the largest oil and gas projects and in the enterprises of the industry were conveyed to the newly formed company.
April 2, 1997 – National Company for oil transportation KazTransOil is created.
June 1997 – Privatization of enterprises of oil-gas sector of the republic begins. Control packet of shares of Aktobemunaygas JSC (60%) sold to Chinese National Oil Company was the first step.
November 18, 1997 – Final production sharing agreement on Karachaganak oil-gas condensate field was signed in the course of President Nursultan Nazarbayev’s visit to Washington. Kazakhstan’s share in divisible income totals 80%. Specially created Karachaganak integrated organization (KIO, Karachaganak Petroleum Operating) includes Agip (32.5%), British Gas (32.5%), American Texaco (20%) and Russia LUKoil (15%).
November 18, 1997 – Production sharing agreement on North Caspian between Agip, British Gas, British Petroleum and Statoil, Mobil, Shell, Total and KazakhstanCaspianShelf is signed. According PSA, exploration period lasts 6 years since PSA gains force with possible prolongation for 2 years. Production and development period is 20 years starting from the commercial discovery at the contracting area. Two prolongations of 10 years each possible.
January 1998 – Production sharing agreement on Karachaganak field comes into effect.
May 1998 - Karachaganak Petroleum Operating Consortium (KPC is a control structure of the consortium) organized the presentation of the Karachaganak field development program.
July 14, 1998 - Drilling of the first oil well in the Kazakhstan sector of the Caspian shelf is commenced. The well drilled by Kazakhstan-American joint venture Arman in the area of Mertvy Kultuk (Dead Kultuk). An artificial island (berma) built for drilling of well in the shallow water area.
October 29, 1998 – Presidents of Azerbaijan, Georgia, Kazakhstan, Uzbekistan, Turkey Heydar Aliyev, Eduard Shevarnadze, Nursultan Nazarbayev, Islam Karimov and Suleyman Demrel (respectively) sign Ankara declaration to regulate transportation of Caspian energy resources to the international markets along Baku-Tbilisi-Ceyhan route.
1998 –Council of foreign investors is created (under the initiative of Nursultan Nazarbayev) and includes executives of all big oil companies operating in Kazakhstan.
May 1999 – Construction of a pipeline of the Caspian Pipeline Consortium is launched.
June 1999 – Setting of Sunkar floating drilling barge afloat in Astrakhan.
August 12, 1999 – OKIOC launches drilling of the first wildcat well Eastern Kashagan-1 in the Kazakh shelf of the Caspian Sea.
September 1999 – The 100th anniversary of production of the first oil in Kazakhstan in Atyrau is celebrated.
September 1999 – The group of companies involved in the Karachaganak project signed the Memorandum of Understanding on construction of a pipeline for oil export from the field. The 460-km oil pipeline is to connect Karachaganak with the CPC pipeline in Atyrau (Tengiz-Novorossisyk).
November 18, 1999 - The Istanbul Declaration is signed and fixed the agreement between the workgroups of Azerbaijan, Georgia and Turkey on the project of the major export pipeline, Baku-Tbilisi-Ceyhan (BTC) for transportation of Caspian oil.
February 2000 – The national oil transportation company KazTransOil established a daughter company, KazTransGaz.
Summer 2000 – KazTransGaz became a full owner of the southern energy grid and the gas transmission system of the republic.
The Era of great discoveries
June 30, 2000 – In Kazakhstan East-1 well discovered the large oil field in the shelf of North Caspian, Kashagan field. The field is one of the largest in the world discovered over the last 40 years and also the largest offshore oil field.
June 2000 – Kazakhstan represented by Kazakhoil NC sold 5% in Tengizchevroil JV to Chevron for $450 mln., but preserved the block equity holding of 20%.
July 2000 – KazTransGaz launched development of Amangeldy groups of fields in Jambyl area.
November 2000– Welding of the last joint of CPC pipeline joining Tengiz field with the offshore terminal at Novorossiysk port.
2000 – The National Fund is created in accordance with Kazakhstan President’s order for accumulating financial means for future generations as well as reducing country economy’s dependence on impact of unfavorable external factors and world prices trends. Fund’s assets develop at the expense of financial means coming from large enterprises engaged in energy sector of Kazakhstan (mainly oil companies) and investment income that is added to these sums.
February 2001 – Italian group of Companies ENI is chosen a single operator of Kazakhstan fields development in the North Caspian.
March 26, 2001 – Oil injection into CPC’s Tengiz-Novorossiysk pipeline system starts in Atyrau. About 1 mln tons of oil is necessary for infilling of the pipeline to the length of 1,480km.
May 2, 2001 – The national company “Transport of oil and gas” (TOG) for operation of main oil and gas pipeline in accordance with the governmental decree is formed. State blocks of shares of KazTRansOil CJSC and KazTransGaz passed to the new company.
May 2001– Kazakhstan’s West-1 well discovers West Kashagan field.
August 3, 2001 - Agreement of Caspian Pipeline Consortium (CPC) on oil transportation approved in Moscow.
August 30, 2001 – Atyrau region celebrates the 90th anniversary of the oldest oil field Dossor. Stable oil production has been carried out at this field since 1911.
November 28, 2001 – The first tanker loaded with Tengiz oil leaves the Black sea port of Novorossiysk.
February 20, 2002 – 100% state-owned NC KazMunayGas JSC is created in accordance with Kazakhstan President’s Decree in order to raise efficiency and transparent development of oil-gas complex and protect interests of the Republic of Kazakhstan in the oil-gas sector of the country. KazMunayGas NC is a successor of National Oil Company Kazakhoil CJSC and NC Transport of Oil and Gas CJSC.
May 3, 2002– Kazakhstan’s President Nursultan Nazarbayev and RF President V.Putin sign a historical document - Protocol of agreement between Russia and Kazakhstan on delimitation of the north part of the Caspian Sea.
May 23, 2002 –Construction of Kenkiyak-Atyrau oil pipeline commenced.
May 16, 2003 – State program on development of the Kazakhstan Sector of the Caspian Sea approved.
May 2003 – Russia, Azerbaijan and Kazakhstan sign a three-side Agreement on the junction point of delimitation lines of adjacent sections of the Caspian Sea bed. The document approved on the level of Deputies Ministers of Foreign Affairs legalized the status of about 60% of resources of the whole area of the sea. Thus, there are no disputable issues remained between these three states.
August 2003 – President of Kazakhstan N.Nazarbayev takes part in injection of first oil produced at Karachaganak field into the export pipeline of CPC.
August 2003 – Karachaganak integrated organization (KIO) officially launches a new refinery and a pipeline connecting Karachaganak with CPC oil pipeline. The refinery includes plants on production of stable condensate and injection of excessive gas back into formation.
December 2003– KazMunayGas and LUKoil companies sign PSA on development of Atash and Tub-Karagan fields in the Kazakhstan sector of the Caspian Sea.
2003– South-East Kashagan field is discovered.
January 9, 2004 – Signing of Kazakhstan-Russian agreements on promising offshore projects Tub-Karagan and Atashskiy in the Caspian Sea.
October 2004 – Construction of Atasu-Alashankou (Kazakhstan-China) oil pipeline is commenced.
2004 – Oil quality bank is established in Kazkahstan. The hydrocarbons database of the companies operating in Kazakhstan enables to identify oil batches at different stages of its transportation, transshipment and storage.
The newest history
March 2005 – KazMunayGas NC purchases half of shares (8.33%) of British Gas in the North-Caspian project.
May 2005 – Aktau receives first oil tanker Astana. It means launch of creation of the Kazakhstan sea fleet.
May 25, 2005 – A ceremony of inauguration (celebration of first oil injection) of the Azeri section of export oil pipeline BTC takes place at base pumping station of the Sangachal terminal with participation of presidents of Azerbaijan, Georgia, Turkey and Kazakhstan.
June 2005 – Full completion of construction of Azerbaijani section of the main export oil pipeline Baku-Tbilisi-Ceyhan.
June 2005 – KazTransGas JSC acquires 100% block of shares of Almaty Power Consolidated JSC. Memorandum on the purchase of 100% shares of Georgian gas transporting company Tbilgas signed.
July 6, 2005 – PSA on Kurmangazy structure and an agreement on joint activity between Offshore Oil Company KazMunayTeniz JSC signed.
November 11, 2005 - Medium-term agreements with Gazprom OJSC for transportation of Central Asian and Russian gas via the territory of Kazakhstan during 2006-2010 signed.
November 2005 – Intergovernmental agreement between Kazakhstan and Azerbaijan for transportation of Kazakh oil through BTC oil pipeline submitted to Presidents of Kazakhstan and Azerbaijan for consideration. Azerbaijan and Kazakhstan start developing transit agreement on transportation of Kazakhstan’s oil along BTC.
May 12, 2006 – Solemn ceremony of completion of the project on reconstruction of Atyrau refinery and launching new plants of the refinery takes place in Atyrau with participation of the President of Kazakhstan.
May 31, 2006 – Commissioning of supply pipeline OGPS North Buzachi – Karajanbas OPS due to the planned growth of oil production at North Buzachi field. The pipeline meets the growing demand for oil transportation from North Buzachi field along the system of main oil pipelines of KazTransOil JSC with further delivery for export.
June 16, 2006 – Presidents of Azerbaijan and Kazkahstan sign a joint agreement on support and assistance in transportation of Kazakhstan oil through the Caspian Sea and the territory of Azerbaijan towards the global markets by means of the Baku-Tbilisi-Ceyhan system.
July 2006 –Deals on acquisition by NC KazMunayGas JSC of 50% participation share in JV KazGerMunay LLP and 33% share of PetroKazakhstan signed.
July 20, 2006 - Commercial operation of the oil pipeline «Atassu-Alashankou» (Kazakhstan-China) begins.
October 2006 – IPO Issue by KazMunaiGas EP JSC. Floating of shares of KazMunayGas Exploration Production JSC at London stock exchange.
January 24, 2007 – The Kazakhstan national company, KazMunayGas, signed the Memorandum of Mutual Understanding on the project on creation of the Kazakhstan Caspian oil transportation system to provide export of oil from Kashagan and Tengiz fields via the Caspian Sea to Europe through Eskene-Kuryk-Baku-Tbilisi-Ceyhan route.
January, 2007 – The transaction on acquisition of 50% of Naftrans Capital Partners Ltd (a part of Batumi Industrial Holdings Limited), which holds 62% of the oil terminal in Batumi is completed. The transaction is worth $62 million. The Batumi terminal became the first foreign transshipment asset of Kazakhstan providing access to the international waters.
May 11-12, 2007 – The session of the Energy Summit in Krakow. Six countries (Azerbaijan, Poland, Ukraine, Georgia, Lithuania, and Kazakhstan) take decision on a new energy corridor. The final communique ascertained creation of the energy block of states united by the general strategy in implementation of their energy policy.
July 11, 2007 – KazMunayGas NC JSC jointly with the Chinese National Oil Company bought on a parity basis 100% of shares of Valsera Holdings B.V., a parent company of PetroKazakhstan Oil Products (Shymkent Oil Refinery).
August 7, 2007 – The basis for implementation of the Transcaspian project (a part of the Kazakhstan Caspian Transportation System) was laid. KMG and SOCAR signed bilateral documents on implementation of the project.
August 16, 2007 – Azerbaijan and the USA signed the grant agreement on preparation of the feasibility study of the Transcaspian pipeline project for implementation of plans on energy supplies from the East Caspian.
August 18, 2007 – Cooperation Agreement on construction and operation of the Kazakhstan-China gas pipeline between the Governments of Kazakhstan and the People’s Republic of China is signed.
August 24, 2007 – KazMunayGas Trading House JSC signs the contract on acquisition of 75% of Rompetrol Group N.V. The sum of the transaction comprised $1.6 bln. The remained 25% of shares were bought later in June, 2009.
November 8, 2007 – KazMunayGas NC JSC and the Chinese National Petroleum Corporation signed the Agreement on basic principles of construction and operation of Kazakhstan-China gas pipeline.
December 29, 2007 – The Ministry of Energy and Mineral Resources of the Republic of Kazakhstan and KazMunayGas NC JSC signed the PSA on H block.
February, 2008 - KazTransOil JSC, a subsidiary of KazMunayGas JSC, acquires 100% of shares of Batumi Industrial Holdings Ltd company, owning the Batumi oil terminal and port.
October, 2008 – Transportation of Kazakhstan oil from Tengiz field in Kazakhstan via the BTC oil pipeline is launched.
2008 - Acquisition of shares of BP in Kazakhstan Pipeline Ventures (KPV) was approved. The contract was signed with Central Asia Petroleum Ltd. on purchase of 50% + 2 voting shares of Mangistaumunaygaz JSC.
December 17, 2008 – The Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, the Ministry of Energy of the Russian Federation and CPC shareholders (except for Lukarco B.V.) signed the memorandum of principles for implementation of the CPC expansion project.
February 27, 2009 – KMG purchased 50% of shares of Kazakhstan Petrochemical Industries during open trades within the frames of the project on manufacture of high-quality road bitumen.
April 2009 – KazMunayGas NC JSC completed the transaction on acquisition of BP’s share (49.9%) in their joint venture KPV (CPC’s shareholder).
October 2, 2009 - KazMunayGas and SOCAR signed the Agreement on joint operation in elaboration of a feasibility study on the Transcaspian project, the Memorandum of Intentions on cooperation on Baku-Black Sea oil pipeline and the Memorandum on joint use of SOCAR’s oil and gas infrastructure in the process of Kazakh hydrocarbons fields development.
November 2009 – The transaction on acquisition of 100% package of shares of Mangistaumunaygaz was ended.
June 24, 2009 - KazMunayGas accomplished the purchase of 25% of shares of Rompetrol Group NV (TRG) that earlier belonged to Rompetrol Holding SА.
December 12, 2009 – The first branch of Kazakhstan-China gas pipeline is commissioned.
March, 2010 – The Ministry of Oil and Gas of Kazakhstan on the basis of the Ministry of Energy and Mineral Resources is established.
May 25, 2010 – Establishment of the affiliated organization of KazMunayGas NC JSC, PSA LLP.
July 12, 2010 – The agreement signed with KMG NC on acquisition of 50% of KMG Exploration and Development’s share in Kazakhoil Aktobe LLP (KOA), 51% of share in Kazakhturkmunay LLP (KTM) and 50% of share in Mangistau Investments B.V (MIBV) owning 100% of shares of Mangistaumunaygaz (MMG) JSC according to the existing legislation.
September 27, 2010 - According to the decision of the Board of Directors of KMG, 100% of shares of the Institute of Organic Catalysis and Electrochemistry named after D.V. Sokolsky JSC and 100% of shares of the Institute of Chemical Science named after A.B. Bekrutov JSC were transferred as payment of shares of Kazakh-British Technician University.
November 18, 2010 – The 3rd Summit of Heads of Caspian States results in signing of the Agreement on Cooperation in the field of safety on the Caspian Sea” and adoption of the Joint Declaration. The Presidents of Azerbaijan, Russia, Kazakhstan, Turkmenistan and Iran signed the document. The summit cleared up the position of parties concerning the division of the Caspian Sea.
November 30, 2010 - Beyneumunaygaz LLP was registered in Beyneu village, Mangistau area, to transfer to temporary possession and using of the contract territory and property with a view of ensuring continuous technological process on Tolkyn and Borankol fields till the assets are transferred to a new subsoil user.
December 14, 2010 – SOCAR and the Kazakhstan oil company, Mangistaumunaygaz, operating in Aktau signed the Memorandum of Cooperation envisaging joint scientific researches and engineering, exchange of legal documents and technical standards, participation in workshops, conferences, symposiums, forums, cooperation on introduction of brand-new technologies in the field of oil production and ecology.
April 19, 2011 – KazMunayGas Exploration and Production (KMG EP) announces conclusion of the transaction on acquisition of 50-percent participating interest of Ural Group Limited (UGL) from Exploration Venture Limited (EVL). UGL is a 100% owner in Ural Oil and Gas LLP (UOG) that enjoys the right to subsoil use and implementation of exploration work on the Fyodorov field.
March 16, 2011 – KazMunayGas NC and Statoil sign the Agreement on Principles (AoP) on Abay field located in the Kazakh sector of the Caspian Sea.
May 25, 2011 - KazMunayGas (NC JSC) and KMG Exploration and Production JSC (KMG EP) announce singing of the Memorandum of Understanding (Memorandum) that envisage providing KMG EP the access to detailed geological and geophysical data on some oil and gas projects, including those located in the Kazakh sector of the Caspian Sea. The list of projects includes, in particular, Zhambyl, Usturt (Dead Kultuk), Zhenis, Godina, C-1 and C-2, and also Urikhtau offshore fields. The portfolio of oil and gas projects can be expanded on approval of the parties.
June 10, 2011 – KazMunayGas NC JSC (KMG) completes the transaction on acquisition of 100 percent participating interest in the equity stock of Aktaunefteservis LLP that specializes in offering of oil and gas services to Mangistaumunaygaz JSC (over 90% of services).
July 2011 – The 50th anniversary of Mangistau oil celebrated.
July 1, 2011 – The solemn ceremony dedicated to the start of construction works on the CPC Expansion Project was hosted on the territory of the Atyrau oil pumping station.
December 9, 2011 The solemn ceremony of custody transfer of the first large DWD tankers of Kazmortransflot (KMTF, 100% subsidiary of KazMunayGas NC JSC) was hosted in Batumi, Georgia.
December 14, 2011 – The parties of the Karachaganak Consortium - BG Group, ENI Group, Chevron, Lukoil and the Republic of Kazakhstan sign the agreement on transfer of 10% of participation interest in the project to KazMunayGas NC. The cost of the sold share will comprise $3 bln., including the non-cash equivalent. Out of this sum the Consortium parties will pay $1 bln. of taxes to the budget of Kazakhstan. When KazMunayGas joins the project, BG and ENI will possess 29.25% each, Chevron - 18% and Lukoil – 13.5%.
December 28, 2011 – KazMunayGas Exploration and Development JSC (KMG ED) announces conclusion of the transaction on acquisition of 100% package of shares of Karpovsky Severniy JSC, which enjoys the right to subsoil use on the Contract on exploration of oil, gas and condensate on Karpovsky Severniy field in the Western Kazakhstan area, from GazMunayOnim LLP.
December 29, 2011 – The solemn signing of a contract on construction of the Deep Oil Processing Facility was held in Atyrau.
September 10, 2012 – The solemn ceremony of laying of the first stone to the fundament for construction of the Deep Oil Processing Facility was hosted at the Atyrau Oil Refinery.
September 19, 2012 – The decision was taken to pay off dividends upon the results of operation of KazMunayGas NC JSC in 2011.