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KazMunayGas does not halt production despite coronavirus

KazMunayGas does not halt production despite coronavirus

Nur-Sultan, May 1– Neftegaz.RU. KazMunayGas (KMG), Kazakhstan’s national vertically integrated oil & gas company, announced its operating results for the 1st quarter of 2020, noting that despite the current coronavirus pandemic, KMG has not halted any production activities at its facilities.

“However, declining demand for oil caused by COVID-19 and recent OPEC+ agreement to collectively cut oil production where Kazakhstan committed to reduce crude production by 390,000 barrels per day, may require restricting KMG production during the 2nd quarter of 2020,” KazMunayGaz Alik Aidarbayev said.

According to KMG, oil & gas condensate production was stable year-on-year and amounted to 5,929 thousand tonnes. Oil and gas transportation segment was relatively stable at 18,517 thousand tonnes of oil and 28,320 million cubic metres of gas transported. Refining volumes at Kazakh and Romanian refineries decreased by 4.9% year-on-year to 4,660 thousand tonnes,  KMG said.

According to company, KMG’s share in oil production, and natural and associated gas production at mega projects (Tengiz, Kashagan, and Karachaganak) increased by 4.6% and 5.9% year-on-year, and amounted to 2,184 thousand tonnes (191 kbopd) and 1,597 million cubic metres, respectively.

KMG’s share in oil & gas production at Tengiz increased by 0.9% year-on -year and amounted to 1,535 thousand tonnes (135 kbopd) and 841 million cubic metres, respectively.

“The global pandemic did not affect operations at Tengiz in the 1st quarter of 2020, but several employees of TCO’s contractor were infected with COVID-19 in mid-April. To avoid further personnel infection, TCO has developed a safety plan for Tengiz that considers construction postponement at base production units, gradual suspension of non-critical work related to the Future Growth Project and a decrease of the number of personnel in the Tengiz field,” KMG said.

KMG’s share in oil production at Kashagan increased by 23.0% year-on -year to 365 thous. tonnes (32 kbopd).

“The growth of oil and gas production is attributable to higher gas injection given the transfer of 2 wells to the injection fund, as well as the improvement of the utilisation ratio at the production facilities. In the first quarter of 2020, the average gross daily production at Kashagan amounted to 384 kbopd,” the company noted.

KMG’s share in oil production at Karachaganak increased by 5.2% year-on-year and amounted to 285 thous. tonnes (25 kbopd). Gas production amounted to 538 million cubic metres, up by 8.1% year-on- year.

“The growth of oil and gas production is associated with stable gas acceptance by Orenburg GPP and the planned preventive maintenance of the facilities of the Karachaganak Processing Complex (KPC) and gas-processing units (Unit 2 and Unit 3) in September-October 2019,” the company said.

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