Kazakhstan drilling and services company

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KIOGE 2016

EXTENSIVE PLANS OF THE NEW COMPANY

 In today’s Kazakhstan the oil and gas sector still keeps the leading role in the system of the national economy that foreshadows the high level of its investment attractiveness.

 

As known Chevron became one of the first western oil companies that supported the initiatives of the President of the Republic of Kazakhstan N.A.Nazarbayev about the mutual beneficial cooperation.

In 1993 the Government of the Republic of Kazakhstan jointly with Chevron Company created JV “Tengizchevroil” (TCO) for the development of Tengiz oil field. The volume of the recoverable reserves in the amount of 750 million to 1.1 billion of tons of oil reflects the range of work of JV Tengizchevroil.

From 2007 to 2015 the drilling services for TCO were provided by the leading American Company Nabors Drilling International Limited that currently has the most numerous onshore drilling rigs being a top performer in providing the workover rigs. Over the years Kazakhstan is taking measures to turn to the qualitatively new level of drilling. During one of the meetings of the Foreign Investors’ Council N.A. Nazarbayev voiced the confidence that the national companies working in the fields of construction, wells and equipment maintenance can master the new trends and the associated volumes.

And thus, the unprecedented event took place in April 2015 that caused the essential power balance change in the drilling services market in Kazakhstan oil and gas sector. It is referred to signing of Articles of Association on the establishment of the joint venture between KMG Drilling & Services LLP (affiliated company of JSС NC KazMunayGaz) and Nabors Drilling International Limited Company. The new company was named KMG Nabors Drilling Company (KNDC). 49% are owned by Kazakhstan and 51% by the foreign partner.

In the past Kazakhstani party was not involved as the drilling contractor in Tengiz, Kashagan and Karachaganak. Considering the high status of those projects only foreign top-level drilling companies were attracted to the drilling works.

         Now the situation has fully changed and the half of the work scope that was performed by Nabors Drilling independently for Tengizchevroil in the past will be assigned to Kazakhstani party.

At the same time the whole personnel of KNDC starting from the first Deputy position of JV consists of the Kazakshtani specialists.

Signed Service Order Agreement (Drilling Contract) considers the handover of the total scope of drilling works performed in Tengiz field for TCO to the joint venture. 

The range of work performed by the joint venture is impressive. Construction of more than 150 deep wells within a 7-year period with the total cost of more than $500 million is considered to be executed in Tengiz within the current working program.

Taking into account the upcoming work scope KNDC took the appropriate measures to successfully meet the obligations on drilling operations. In particular Nabors Drilling Company submitted three drilling rigs to KNDC.

A contribution to the production inventory by KMG Drilling & Services should be considered in detail. Kazakstani party of JVordered and constructed a unique drilling rig of the newest generation in Houston (USA) capable to make the multiple well drilling operations.

The main technical characteristics of the new drilling rig are the following:   bearing capacity is 750 tones, power rating is 3000 horse power, drilling depth is 9000 meters.

Generally, the importance of this Project cannot be overestimated. Execution of the KNDC business makes it possible to significantly increase the Kazakhstan content in the oil and gas sector, adopt a unique experience, knowledge, technology and management systems and effectively work in other huge oil and gas projects in Kazakhstan as a drilling contractor on a long-term horizon.  

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