PetroKazakhstan: Striving for Harmony through Responsibility
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PetroKazakhstan's major business units are JSC PetroKazakhstan Kumkol Resources (PKKR) and LLP PetroKazakhstan Oil Products (PKOP).
The upstream business unit, PetroKazakhstan Kumkol Resources, is located in the southern part of Central Kazakhstan in the Kyzy-lorda Oblast. PetroKazakhstan Oil Products is a business unit located in Shymkent, South Kazakhstan Oblast, and deals with refining of crude oil produced by PetroKazakhstan Kumkol Resources as well as tollers' crude oil. PetroKazakhstan also owns a 50% share in two joint ventures operating in the South Turgai Basin: Kazgermunai and Turgai Petroleum. Ka-zMunayGas National Company is PetroKazakh-stan's partner in JV JSC Kazgermunai and Lukoil Overseas Kumkol B.V. is a partner in JSC Turgai Petroleum.
PetroKazakhstan's goal is to become a recognized leader in the oil and gas industry of Kazakhstan and an exemplary corporate citizen, represent a value for its shareholders and the Republic of Kazakhstan, ensure health and occupational safety for its employees and safety of the environment, constantly improve the efficiency of the company management and management of its operations, encourage leadership skills, develop qualified employees, and fully achieve its growth potential by using advantages of its shareholders in terms of technology, management, culture and team work. The corporate social responsibility is a top priority for PetroKazakhstan's business. Protecting the environment, ensuring safety and health of employees are integral parts of the company's social responsibility.
On the whole in 2007 the total crude oil production of PetroKazakhstan Inc. (i.e. including PKKR, 50% share in JV Kazgermunai and JV Turgai Petroleum) was 6.783 million tons (52.542 million barrels) or averaged 18.583 ton/day (or 143,950 barrels).
Geological exploration is the future of the company that generates its growth. The overall exploration and production business of PetroKazakhstan is carried out in the South Turgai Basin in the south of Central Kazakhstan. In 2007 the company continued its active work in geological exploration: 21 exploration wells were drilled, seismic surveys, detailed processing and interpretation of field seismic data were completed. PetroKazakhstan is an oil and gas company that combines the whole production chain into one process: from crude oil production and processing to top-quality refined products and a well-developed marketing and transportation system. In 2007 PetroKazakhstan commenced implementation of a long-term development plan for its Shymkent refinery on modernization of the existing refinery facilities and construction of new processing units. It is planned to increase the light product yield and improve their quality (to meet Euro-3 and Euro-4 standards) and to produce new products such as polypropylene, benzene and elementary sulfur for the purpose of petrochemicals development.
In 2007 the Shymkent refinery processed 4.06 million tons of crude oil (31.23 million barrels) compared with 4.04 million tons of crude oil (31.27 million barrels) in 2006. The maximum high-octane gasoline yield was achieved totaling more than 50% of the whole gasoline pool. And the ratio of the light oil products to the crude oil volume processed was about 62%. Re-equipment of crude oil tanks was continued. For example, a 20,000-ton crude oil tank #304/4 was cleaned of oil sludge, fully repaired and upgraded. The obsolete equipment was replaced on two transformer substations which is very critical for the smooth equipment operation.
The revamping will be a key to opening the Shymkent refinery's potential that will allow to play a leading role in Kazakhstan and Central Asia. The success of the company's business depends in many respects on the economic stability and well-being of the local communities in the regions where the company operates and where its employees and their families live. Therefore, the company's major focus is not only on production increase, but also on improving people's life and developing the social infrastructure in the regions where the company operates.
Mr. Bo Qiliang
President and Chief Executive Officer of PetroKazakhstan Inc.
President of PetroKazakhstan Kumkol Resources and PetroKazakhstan Oil Products President of PetroKazakhstan Overseas Services Inc.
Mr. Bo Qiliang holds a BSc Degree in Production Engineering from the East China Institute of Petroleum, a PhD in Oil and Gas Field Development from the China University of Petroleum. He also holds an MBA from Massachusetts Institute of Technology, USA.
Mr. Bo Qiliang has over 20 years of experience in the oil and gas industry. Mr. Bo Qiliang has held the following positions with CNPC: Senior Vice-President of PetroChina International Ltd., President of the PetroChina International Ltd. Companies in Indonesia, Vice-President of the CNPC Research Institute of Petroleum Exploration and Development, Senior Vice-President of CNPC International Ltd, and President of CNPC Exploration and Development Ltd.