KMG’s Production Highlights in 2023: New Fields, Enhanced Shipments, Sustainable Growth

ASTANA – The KazMunayGas (KMG) national oil and gas company published production results over the past year on the company’s official website in late February. Recent accomplishments include the opening of new fields, the increase in the shipment and diversification of the Trans-Caspian International Transport Route (TITR), and the implementation of sustainable development projects. 

Photo credit: the KMG press service.

“Looking back, I can say that today’s KMG encompasses the entire spectrum of oil and gas activities within its structure, from exploration and production to transportation and refining of oil,” said KMG Chairman Magzum Mirzagaliyev in an interview with the company’s press service. 

Last year, as part of the initiative to increase gas production at operational and exploration assets, KMG launched three new fields the Aksai Yuzhny field, the Vostochny Urikhtau field, and the Rozhkovskoye field.

KMG Chairman Magzum Mirzagaliyev. Photo credit: the KMG press service.

The company concluded the acquisition deal with France’s TotalEnergies for a 60% stake in the Dunga oil and gas field in the Mangystau Region in November 2023. Oil production for the reporting year at the field amounted to 547,000 tons, with KMG contributing 40,000 tons since its involvement in the project.

The development of the TITR is now of particular importance for the Kazakh government in enhancing the country’s transit potential linking it to the global transport network. In 2023, KMG shipped approximately 1 million tons in 2023 through the corridor via the Baku-Tbilisi-Ceyhan pipeline. As part of route diversification efforts, the company delivered nearly 1 million tons of oil to Germany through the Atyrau-Samara pipeline.

In terms of oil trading, Mirzagaliyev noted the launch of the Kazakhstan Export Blend Crude Oil (KEBCO) brand, “a significant event not only for the company but for the entire oil and gas industry of Kazakhstan.” 

“Historically, Kazakhstan traded two brands of oil: a blend of oils in the Caspian Pipeline Consortium (CPC), and Urals, which is transported through the Atyrau-Samara pipeline. Regarding the Urals, it should be noted that Kazakhstan’s oil is mixed with Russia’s oil during transportation to the Russian seaports,” said Mirzagaliyev. 

“Therefore, the introduction of the KEBCO brand marks a pivotal moment in the country’s oil trading landscape, signifying Kazakhstan’s growing prominence as an independent player in the global oil market,” he noted. 

Another noteworthy achievement is the formation of a joint venture in cooperation with Abu Dhabi Ports (ADP), and the acquisition of two tankers, Taraz and Liwa, each boasting a deadweight of 8,000 tons. The vessels are now operating in the transportation of Kazakh oil across the Caspian Sea.

“In addition, we have initiated the first-ever transportation of Tengiz oil in open seas. Historically, this task was exclusively managed by Chevron Tankers. Today, the joint fleet of tankers operated by KMG and ADP is already transporting oil from the Tengiz field from the marine port of Novorossiysk to destinations worldwide,” said Mirzagaliyev. 

In terms of strategic objectives, the company is implementing sustainable development projects, including its low-carbon development program. KMG is finalizing the Environmental Impact Assessment (EIA) for the one-gigawatt (GW) Mirny wind power in partnership with Total Eren, the French renewables producer. 

In comparison with 2022, the proven and probable hydrocarbon reserves of the KMG increased by 3.7% in 2023, reaching 733 million tons of oil equivalent. 

The volume of oil and gas condensate production has also increased by 6.9%, reaching 23,532 tons. Apart from that, the company demonstrated a notable growth in the volume of oil transportation, which rose by 7.6%, totaling 80,359 tons.

According to Mirzagaliyev, many of the aforementioned socio-economic initiatives undertaken and systematically implemented by KMG, stem from a deep appreciation for the unique value of the many skilled professionals within the company’s workforce, comprising the thousands-strong labor collective of its enterprises. The figures over the past year indicate the strengthening of the company’s position in the global oil and gas industry and the remaining vast potential for significant discoveries in Kazakhstan.

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