Sergey Kondratyev

Karachaganak Petroleum Operating B.V. (KPO)

Karachaganak Petroleum Operating B.V. (KPO) is a joint venture between Royal Dutch Shell (29.25%), Eni (29.25%), Chevron (18%), LUKOIL (13.5%) and KazMunaiGas (10%). KPO oversees the expansion and development of the Karachaganak field – one of the world's largest oil and gas condensate fields. Located in northwest Kazakhstan it covers an area of over 280 square kilometres and holds estimated hydrocarbons initially in place (HIIP) of 9 billion barrels of condensate and 48 trillion cubic feet (tcf) of gas, with estimated gross reserves of over 2.4 billion barrels of condensate and 16 tcf of gas. Since signing the Final Production Sharing Agreement 1997, KPO's Partners have invested around $21.4 billion into developing of the field and applying industry leading technology aimed at maximizing sustainable economic value. This is being implemented in accordance with the highest RoK and international safety and environmental protection standards. KPO fully supports initiative of the Republic of Kazakhstan regarding transition to "a green economy". In Q2 2016, the gas utilisation rate at Karachaganak reached 99.81%, which is a world-class achievement. Overall, KPO's investments into environmental activities have exceeded $315 million. KPO is one of the first companies in Kazakhstan to successfully introduce a Local Content Development Programme. More than 3,800 Kazakhstani suppliers are currently registered in KPO vendor database. Overall, the total value of goods, works and services supplied by Kazakhstani companies has exceeded $5.5 billion. As the largest employer in the WKO region, KPO is fulfilling its obligations towards provision of long-term local jobs with competitive salaries. While delivering on its operation commitments, KPO as a responsible corporate citizen works towards ensuring sustainable development whilst generating maximum social and economic benefits from the Karachaganak field for the Republic of Kazakhstan and local communities.