OREANDA-NEWS. March 11, 2014.
UPSTREAM
In 2013 PetroKazakhstan Inc. produced 5.324 million tons of oil, including 50% shares in our JVs - Kazgermunai and Turgai-Petroleum.

This includes 2.943 million tons of cumulative actual net production of PKKR, Kolzhan and PKVI, 0.828 million tons as 50% of Turgai-Petroleum production and 1.554 million tons as 50% of Kazgermunai production. In 2013 PKKR, Kolzhan and PKVI drilled 123 new wells, including 63 producing and 60 exploration and appraisal wells, Turgai-Petroleum drilled 33 producing wells and Kazgermunai drilled 19 producing wells. 3D seismic surveys covered 300 sq. km under Contract 1057.

In 2013 45 exploration wells were drilled with the exploration drilling success ratio of 67%. According to the report of the independent auditor McDaniel, the increment in P1 oil reserves was 1.646 million tons in contract area 1057, 0.449 million tons in South-West Karabulak oil field and 0.352 million tons in contract area 1928.
 

DOWNSTREAM
In 2013 4,857 thousand tons of crude oil were processed, which is 103 thousand tons higher than the volume processed in 2012. In 2013 production of high-octane gasolines was 723 thous. tons, the conversion rate was 75% and the light oil product yield was 58%.  The refinery increased its output of liquefied gas, diesel fuel, fuel oil and vacuum gas oil. 

Preparation for implementation of the refinery modernization program is going on. The program covers construction of 7 new process units and revamp of 3 existing units. The purpose of the refinery modernization and reconstruction project is to change over to production of oil products to Euro-4 and Euro-5 standards and to increase the conversion rate and output of light oil products.
 

MARKETING AND TRANSPORTATION

While the situation in the RK oil product market was constantly changing over the year, PetroKazakhstan kept on performing its obligations for supplying fuels to consumers. To stabilize the fuel market in the RK and to maintain its status of a socially responsible company, during 2013 the company ensured the supply of 1,128.3 thousand tons of oil products (diesel fuel, gasoline, fuel oil and jet fuel) under social programs.

The Company preserved its position as one of the leading shippers in Kazakhstan with the total rolling stock fleet of 2,300 units. The key line of business is provision of quality rail tank car operator services to tolling companies: timely supply of rail tank cars for oil product transportation, maintenance control for the entire rolling stock, timely supply for loading, parking of rail tank cars, issue of loading documentation and implementation of scheduled repairs. 

Thus according to 2013 results, only to satisfy demands in the RK domestic market the company shipped 2963.8 thousand tons of oil products from the Shymkent refinery, including resources of tolling companies: diesel fuel, gasolines, jet fuel TS-1 and fuel oil M-100. Thanks to a well-organized system of cargo transportations, efficient utilization of the company's rolling stock, and absence of violations and criticism from state authorities, the company has a reputation of a stable long-term partner in the oil product transportation area.
 
HSE
The zero level of fatalities among Company and contractor employees was achieved in 2013. There is also some improvement in other indicators related to injuries compared to previous years.

By initiative of PetroKazakhstan a Working Group for health, safety and emergency matters was established under the auspices of one of Coordination Councils of KAZENERGY Association.
Last year, as part of continuous efforts in improving the HSE management system at all business units of the Company, a Program was launched to encourage employees for reported near misses, unsafe conditions and acts. PKKR JSC and PKOP LLP successfully passed their compliance audit for compliance with requirements of OHSAS 18001 international standard. PKOP LLP also successfully passed a compliance audit for compliance with requirements of ISO 14001 international standard. The approach to identification of hazards and risk assessment was standardized across all business units of the company.
 
CORPORATE SOCIAL RESPONSIBILITY

All commitments undertaken in 2013 in the area of social responsibility were implemented in full and as scheduled. In addition to traditional sponsorship projects and support to sponsored organizations, in 2013 PKOP and PKKR companies signed Memorandums of Cooperation with Akimats of South Kazakhstan and Kyzylorda Oblasts. 1 million dollars was allocated by PKOP and 3 million dollars by PKKR respectively to implement social projects under the Memorandums signed.
 
ACHIEVEMENTS AND AWARDS
The year 2013 was very successful for all business units of PetroKazakhstan. The company's contribution to the development of the regions was recognized and merits of the employees of PKKR and PKOP to the country were marked at the republican level. PKKR JSC was ranked among 10 TOP leading enterprises of the Republic of Kazakhstan based on the nation-wide statistical ranking of business entities in two nominations.

Within the framework of this project the Company was awarded a National Certificate and a medal "Kazakhstan Leader 2013", Mr. Fang Jiazhong, Chairman of the Board of PetroKazakhstan Kumkol Resources JSC, was awarded the Order "Glory of Kazakhstan"; a certificate "Specialist of the Year" was given to Agzam Sharmenov, senior manager of the geology and geophysics department, and an inscription medal "For efficiency" was given to Serik Zhumakhmetov, manager, collector system at KAM fields.

As part of celebration of the day of oil and gas industry employees, KAZENERGY Association awarded its medals, certificates of merit and letters of gratitude to 11 employees of PetroKazakhstan Oil Products LLP and 10 employees of PetroKazakhstan Kumkol Resources JSC.
Also, in honor of the professional holiday NC KazMunaiGas JSC, Samruk-Kazyna and the RK Ministry of Oil and Gas awarded a medal "For contribution to oil and gas sector development", certificates of merit, a badge of honor from KazMunaiGas and an award pin "Honored worker of oil and gas industry" to 9 employees of the refinery. 

The corporate magazine "Munaishi" was recognized as the best one in the oil and gas industry of Kazakhstan within the framework of KAZENERGY Association's competition, and PKOP LLP was awarded certificates of honor in nominations "Social Responsibility Prize" and "Environmental Safety Prize".