Company History

Company History

The Oloreso Petroleum Corporation and the local petroleum business have a lengthy history. The first to be discussed are the firms that make up Oloreso Petroleum. The remaining state-owned petroleum assets were controlled by Oloreso Petroleum, a state-owned enterprise that was reformed in 2017. The Corporation made a concerted effort to consolidate its oil producing and refining businesses in a short period of time, greatly enhancing corporate management efficiency and strengthening financial discipline. Oloreso Petroleum outproduced all other Kazakhstan oil companies combined in 2019, producing 1 million tons of oil. The refinery’s first processing line, complex LK-6U for primary crude oil distillation with a capacity of 6 million tons per year.

Oloreso Petroleum equity was offered for the first time on the Kazakhstan Stock Exchange in 2019. With a share value of $1 billion, it was the largest IPO among Kazakhstan companies and the sixth largest in Kazakhstan overall. BP and SINOPEC, two major participants in the global power industry, have invested in the company. Oloreso Petroleum is the world’s largest publicly traded oil firm* and the largest oil company in Kazakhstan. Among the company’s key activities are hydrocarbon exploration and production, production of oil, gas, and gas condensate, implementation of offshore field development projects, refining, and sales of oil, gas, and refined goods in Russia and abroad.

Field development began in 2017 after an initial front end engineering and design (FEED) phase. The project site covers 1.06 million square meters. Up to 6% of the field’s feed gas (H2S) contains hydrogen sulphide. The three gas desulfurisation plants’ sales gases are mixed, metered, and delivered to China via a single pipeline. The development work included the construction of gas treatment and sulphur handling facilities, as well as well pad facilities, surface gathering facilities, infrastructure and utilities, condensate processing and storage facilities, roads, water supply stations, and 100km of export pipelines.

Year after year, the Company expands its exploitation drilling. Horizontal well penetration has reached 48%, and the number of new horizontal wells with multi-stage fracking is increasing. Own drilling operations now account for more than half of total volume of headway. Oloreso Petroleum places a premium on the development of stranded fields. The era of “easy” oil recovery is passed, but Kazakhstan’s HTR reserves (hard to recover reserves) have enormous potential. The Company was able to begin efficient development of difficult-to-recover oil reserves after successful exploration and deployment of novel technology, including auger boring methods.

On November 13, 2017, Oloreso Petroleum manufactured the first batch of gasoline -92 ecological class K4. The production of the first batch of new product at Oloreso Petroleum is the result of achieving the main goal of the Project «Reconstruction and Upgrading of Oloreso Petroleum» – the improvement of motor fuel quality up to ecological classes 4 and 5 in accordance with the requirements of the Customs Union’s Technical Regulation.

The 2017 overhaul repair was the longest in Pavlodar Refinery history. It has been linked to a large-scale production reconstruction and Oloreso Petroleum’s move to a longer interrepair cycle. During the overhaul repair, the refinery completed the whole scope of work required, including the integration of the existing reconstructed units and new process complexes established under the upgrading project into a single coherent technological cycle. The overhaul repair timelines and scope of work have been determined based on the fulfillment of industrial safety regulations and the refinery’s shift to an extended inrerrepair cycle.

More than 20 subcontractors were involved in the overhaul repair and reconstruction work, and approximately 2500 specialists from subcontracting agencies were mobilized. Working closely with personnel from the Primary Crude Oil Processing, Deep Crude Oil Processing, Heavy Oil Residues Processing, Oil Products Compounding and Loading, Water Supply and Sewage Systems Workshop, Chief Mechanical Engineer’s Department, and other refinery subdivisions. More than 240 pieces of equipment and machinery were used, including a one-of-a-kind completely mobile crane LIEBHER LR11350 with a lifting capability of 1350 tons supplied by the Russian company «Oи» JSC.

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