Shell is a global group of energy and petrochemical companies. The scale of global Shell operations is unique:
Shell Projects in Kazakhstan
Shell has had business operations in the Caspian region for over one hundred years, when we were the first to deliver kerosene from Baku to South-East Asia. Today the Caspian region, and Kazakhstan specifically, is still a heartland for Shell.
In modern Kazakhstan Shell was first noticed at the end of last century (in 1992) when the company was involved in appraisal study of the country’s hydrocarbon reserves. To date Shell’s investments in the economy of Kazakhstan is several billion dollars. In Kazakhstan Shell operates in several business sectors including oil and gas exploration & production, hydrocarbon transportation and oil products marketing. Shell in Kazakhstan has offices in Nur-Sultan, Aktau and Atyrau.
Currently, Shell has interests in three projects of great importance for the Republic and for the regions where they are being undertaken, particularly: The North Caspian Production Sharing Agreement (Kashagan), Karachaganak Final Production Sharing Agreement (FPSA), and Caspian Pipeline Consortium (CPC).
NCSPSA (Kashagan)
Kashagan is the key project in the Kazakh sector of the Caspian Sea and one of the most challenging projects in the world. Kashagan, one of the largest oil discoveries in the last three decades. Shell has a 16.81% participating interest.
Kashagan field is located in the Kazakhstan’s sector of the Caspian Sea and occupies an area of approx. 75x45 km. The reservoir lies some 4,200 meters below the sea level in the northern part of the Caspian Sea. According to the current estimate, the field has 35 billion barrels of oil in place with 9 billion to 13 billion barrels being recoverable. RoK Minister of Energy announced the project startup in October 2016. Today, the project focuses on safe ramp-up. Daily production was around 307,000 barrels of oil in 2019.
Karachaganak Final Production Sharing Agreement (FPSA)
Shell, through its
affiliate BG Karachaganak Limited, is a joint operator, with Eni, of one of the
largest oil and gas condensate fields in the world - Karachaganak. Karachaganak
Petroleum Operating B.V. (KPO) develops the field through a joint venture
(Shell’s share-29.25%).
The Karachaganak field is
one of the world’s largest gas and condensate fields. It holds estimated hydrocarbons initially in
place (HIIP) of 13.3 billion barrels of liquids (1.7 billion tons of oil and
condensate) and 60.2 trillion cubic feet (tcf) (1.7 trillion cubic metres) of
gas, of which approximately 11 per cent of liquids and 12 per cent of gas has
been recovered to date.
Since the signing of the FPSA, KPO’s partners have invested
approximately $24 billion into developing the field, applying industry leading
technology to maximize sustainable economic value. This is being implemented in
accordance with the highest safety and environmental protection standards. In
2019, KPO produced 137.930 million barrels of oil equivalent in the form of
stable and unstable liquids, sour gas for export, and sweet gas for use as
fuel. In addition, 8,710.973 Mscm of gas re-injected were into the reservoir, a
volume equivalent to approximately 46.8 % of the total gas produced.
KPO and Partner Companies are delivering
Plateau Extension Projects (PEP), a portfolio of projects aimed at sustaining
liquids production plateau.
Caspian Pipeline Consortium
The “Caspian Pipeline Consortium” (CPC) was established in 1992 between the Government of the Republic of Kazakhstan, and the Russian Federation. The purpose was the designing, financing, construction and operation of a system of pipelines for export transportation of liquid hydrocarbons produced in the Western Kazakhstan and Russian through the territory of Russia. The participating share of Shell in the project “Caspian Pipeline Consortium” is 5.4%.
Sustainable Development and Social Investment
Sustainable Development balances the short-term and long-term needs of society Shell believes it holds the key to our long-term business success. It is a priority area for our staff and also a driver behind some of the work we do outside oil and gas operations, particularly in working together with local communities. In Kazakhstan Shell takes active part and contributes to programs and initiatives aimed at addressing important social issues:
In addition to direct investments into key industry projects, Shell takes active part and contributes to programs and initiatives aimed at addressing important social issues. As part of PSA obligations, some capital expenditures are to be allocated for support of the social infrastructure. This covers education, healthcare, sports and culture and other general interest infrastructure in the regions where the company conducts its operations (WKO, Atyrau and Mangistau oblasts). Total investments made so far by KPO and NCOC into social infrastructure of the regions is over $343 and $500 million respectively. The resources allotted for social infrastructure projects by CMOC have totalled to over $7 million since 2005.
Shell Kazakhstan’s Voluntary Social investment strategy for 2018-2020 was developed with the focus on education, SME and human capital development. Promotion of the road safety advanced practices is also a key priority area for SI portfolio.
Projects include: Shell LiveWIRE is Shell’s global enterprise development initiative launched in WKO, with focus on innovative enterprises and capacity building of local consultancy institutions.
Shell Kazakhstan is committed to local talent development by fostering STEM education. Three projects are being implemented in STEM area:
Road Safety programme implemented in West Kazakhstan Oblast and Nur-Sultan addresses improvement of road safety and focuses on driver and pedestrian behaviour. In March 2019, Shell Kazakhstan signed a Memorandum on cooperation in road safety with Akimat of West Kazakhstan Oblast, Agip Karachaganak B.V. and Eastern Alliance for Safe and Sustainable Transport to consolidate efforts in deeper studying of road safety situation in the region and further joint implementation of a number of improvement initiatives.
Link to the company’s website: https://www.shell.com/