KFICA Members list
Shell is a global group of energy and petrochemical companies. The scale of global Shell operations is unique
- Shell operates in + 90 countries with ~93,000 number of employees
- 48% of our production is natural gas
- 16.8 million tonnes of LNG sold
- 3.3 million barrels of gas and oil we produce every day
- 145 billion litres of fuel sold
- 30 refineries and chemical plants
- 43,000 Shell service stations worldwide
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 Astana, 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), “Pearls” Production Sharing Agreement in the Kazakhstan Sector of the Caspian, and Caspian Pipeline Consortium (CPC).
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.
Following the 2008 resolution a new project operating structure has been formed with a new company North Caspian Operating Company (NCOC) taking operatorship. Within this new structure Shell has taken a leading role on two areas of project execution. A 50/50 KMG/Shell joint venture, NC Production Operations Company B.V. (NCPOC), will manage the production operations of all phases. A Shell company (Shell Development Kashagan BV, SDK) will be responsible for the planning and development of Phase II.
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%.
In December 2005 Shell signed “Pearls” Production Sharing Agreement with the Republic of Kazakhstan in the Kazakhstan sector of the Caspian Sea together with the other two participants of the project - JSC “NC “KazMunayGas” and Oman Pearls Company Limited.
The contract area is being developed by Caspi Meruerty Operating Company BV (CMOC) a joint operating company where Shell has a 40% share; other partners are KMT and Oman Pearls Company Ltd.
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:
- Under the North Caspian PSA, the percentage of the development’s capital expenditure is allocated to support regional social infrastructure projects (SIP). This covers education, healthcare, sports and culture and other general interest infrastructure. As a participant in the NCPSA, Shell contributes its respective share to implementation of social infrastructure projects.
- Within the framework of the Foreign Investment Council, Shell led the Technology Mapping Exercise for the Kazakhstan oil and gas sector to identify technical challenges faced by the operators, prioritize technology target areas and collectively propose solutions to address these challenges. Currently Shell is leading the work on developing the R&D roadmap with the objective to formulate incentives to stimulate and develop local R&D capacity in country.
- In 2009, Shell together with the Akimat of Mangistau region implemented the project “Improving the access to drinking water and the provision of water supply services in Kyzyl-Tobe village of Mangistau region.” Total cost of this project which was not a part of the company’s subsoil user social obligation was 131 million Tenge.
Shell through the KazEnergy’s Education Program has been providing scholarships to young talents for education in a number of Kazakhstan Universities. In order to train future specialists for oil and gas industry, Shell has become one of the major sponsors of Kazakh-British Technical University.