Oil and Gas Production
We produce safe, reliable fuel products for people around the world and we supply the best products to the right locations at the right times. KAZRIVERSTONE ENERGY LTD has become one of the world’s top producers of oil and gas. In KAZRIVERSTONE ENERGY LTD, we further strengthened its position as a leading supplier of oil and gas products to customers globally with the acquisition of brand, associated qualifications and approvals, and related sales and marketing business. KAZRIVERSTONE ENERGY LTD develops, manufactures and markets performance-enhancing additives for lubricating oils and fuels products combine innovative technology and the latest research to help maximize the reliability, efficiency.
From upstream exploration and production to midstream transportation, power and trading to downstream manufacturing and retail, each of our production businesses work in concert across virtually every facet of the energy industry, we rely on our global production resources, determination and ingenuity to meet today’s complex energy challenges.
KAZRIVERSTONE ENERGY LTD production products are recognized worldwide for their quality, performance and technology. Each of these brands offers lubricant oil and fuel products used daily in passenger vehicles, trucks, buses and industrial machinery.
Previous production cuts provided KAZRIVERSTONE ENERGY LTD with invaluable technological expertise that allows it to manage production quickly and efficiently. The Company relies on the following instruments: limiting flow rates without well suspension, intermittent well operation, and optimization of well interventions at the existing wells. This strategy facilitates flexible production management and prompt increase in production, if necessary.
Despite external constraints, the Company continues to develop brownfields and maintain leadership in the Kazakhstan oil industry in terms of launching new high-margin projects.
In 2020, the Company’s share in the total production of liquid hydrocarbons as part of new major projects launched since 2016 (including license area and Mangistau field) amounted to 19.9 mmt (403 kbpd), up 4.8% year-on-year. In Q4 2020, the Company produced 5.23 mmt (421 kbpd) of liquid hydrocarbons as part of these projects, with their share reaching 10.6% of total production of liquid hydrocarbons.
In the context of production constraints, the Company monitors and streamlines its existing development systems to improve the efficiency of reserve recovery at mature fields. The Company continues to implement new technologies to improve the well productivity rate, the scope of reserves under development, and economic efficiency of projects.
The Company primarily focuses on construction of high-tech wells. Horizontal wells accounted for 70% of over 3.2 thousand new wells commissioned in 2021, while the number of new commissioned horizontal wells drilled using multi-stage hydraulic fracturing techniques amounted to 1.4 thousand, retaining its share at 44%. Advanced planning, drilling, and development technologies facilitated new well’s average annual flow rate of 38.4 tpd (against the plan of 37.5 tpd) and 18.4 mmt of incremental production.
Multilateral wells are applied to improve the recovery and reservoir penetration quality for projects with high geological complexity. This method of pay zone penetration was successfully piloted and implemented at the Company’s fields, with 162 multilateral wells commissioned in 2021 (+40% against 2020) and incremental production around 1.9 mmt (+500 kt against 2020).
Along with drilling in new areas, the Company conducts infill drilling to augment production by transforming and expanding the development systems.
In order to increase production and achieve target recovery factor the Company carries out sidetracking operations in existing wells. In 2021, such operations covered 1.4 thousand wells (retaining the level achieved in 2020), resulting in an incremental production of around 3.4 mmt of crude oil (+9% against 2021).