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LUKOIL in the Republic of Kazakhstan

LUKOIL has been operating in Kazakhstan since 1995. The Company is a party to several onshore production projects and a member of the Caspian Pipeline Consortium (CPC). LUKOIL has been investing substantial sums both in production projects and in the region’s social development.

Company Presence

Subsidiary
Activities
LUKOIL Overseas Karachaganak B.V.
    Production of oil, gas and condensate and liquid hydrocarbons
LUKOIL Overseas Kumkol B.V.

    Additional exploration, development and operation of oil fields, transportation and marketing of raw stock and refined products

LLP LUKOIL Lubricants Central Asia    Lubricants

Kumkol project

The Kumkol field is located in the Kyzylorda region in Kazakhstan, 200 km away from the city of Kyzylorda. It is after joining the development project for this field back in 1995 that LUKOIL began its operations in Kazakhstan. The field is developed on the basis of a subsoil use contract signed in April 1996.

  •  Karachaganak project

    The Karachaganak field is located in the West-Kazakhstan region, 140 km away from the city of Uralsk. It is one of the world’s largest oil-gas-condensate fields. LUKOIL joined the project in 1997.
    The field is developed under the Final Production Sharing Agreement (FPSA) made in November 1997 effective for a period of 40 years.

  • Tengiz project

    The Tengiz field (one of the world’s largest) and Korolevskoye field that are part of the Tengiz project are located in the Atyrau region in Kazakhstan, 120 km away from the city of Atyrau. LUKOIL joined the project in December 1997. The fields are developed under the agreement made effective in April 1993 for a period of 40 years. Today, all the project’s crude oil is shipped via the Caspian Pipeline Consortium (CPC).
  • Caspian Pipeline Consortium

    The Caspian Pipeline Consortium (CPC) is the only privately owned mainland pipeline in Russia and Kazakhstan. The pipeline runs from the field of Tengiz to Novorossiysk (Russia) across the Atyrau region in Kazakhstan and four constituent entities of the Russian Federation: the Astrakhan Region, Republic of Kalmykia, Stavropol Region and Krasnodar Region. The project agreement was signed in December 1996, while the pipeline was commissioned in October 2001. The pipeline is over 1.5 ths. km long and 1,020 mm in diameter. Its basic annual throughput capacity exceeds 28 mln tons.

    The upgrading and use of specialized additives enabled the Company to pump about 35 mln tons of oil through CPC in 2013, and an all-time high of more than 40 mln tons of oil in 2014. The ongoing extension project is designed to increase the pipeline’s throughput capacity to 67 mln tons (76 mln tons with flow additives).

Charity and sponsorship are an integral part of LUKOIL’s community-centered business in Kazakhstan. The focus of the Company’s social policies in Kazakhstan is on providing care for local residents in the regions of its operations and improving the quality of living. LUKOIL launched its small business development program Akniet and provides support to WWII veterans, disabled individuals, orphans, children from low-income families, health care and sports organizations, regional charity foundations, museums and on-stage performance groups.

Between 2007 and 2013, LUKOIL put forward a social partnership program titled “Aray” (Dawn) covering the Mangitau and Aktyubinsk regions in Kazakhstan, thus making it possible for any rural resident (as long as he or she is a Kazakh citizen) to get on a competitive basis a free grant to start or develop their own business.

Over the six years of the program, the Company reviewed over 6,000 applications filed by rural residents of the Mangistau and Aktyubinsk regions. Partnerships with authorities at all levels in rural populated centers resulted in the creation of 600 new small businesses and individual entrepreneurs offering all sorts of services in the rural areas.

In 2008, the Aray Program received the Kazakh President’s award “Paryz” as the best social project while in 2009, it was marked with an award of the Tanym Kazakh Civil Forum.

In 2012, LUKOIL was awarded a “Paryz” as the best corporate citizen, primarily for its social activities, in particular the Aray Program.

In 2013, the Company launched a new social project titled “Akniet” (Good Intention), now in Kazakhstan’s Kyzylorda region. It relies on the same concept as Aray, however the focus is on social entrepreneurship. What makes the program special is the active involvement of socially vulnerable segments of the population (mothers of many children, unemployed or disabled individuals, re-settlers) for whom bank loans are hard to get. Selection of Akniet contestants covered six categories: “Social Entrepreneur”, “Innovation”, “Applied Arts”, “Care”, “Initiative”, and “Goodness”.

Starting from the project launch, the residents of the Kyzylorda region have submitted over 3.5 thousand applications and received 270 grants (in 2015 alone, 94 residents were awarded Akniet grants). This resulted in the emergence of dozens of small businesses (bakeries, cafes, pharmacies, car service stations, tailor shops, hairdresser's parlors, dentist’s rooms, consumer electronics service centers) and the creation of hundreds of new jobs.

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