History of “JV “Kazgermunai” LLP

1984. Opening of the first large oil and gas deposit “Kumkol” in the Aryskumskiy bending deflection of the South Torgayskaya hollow.

From 1985, the South Torgayskaya hollow is an object of the intensive prospecting and exploration for hydrocarbon reserves. A number of oil and gas deposits were identified and explored as a result of performed common mid-point seismic survey, profile structural, parametric, prospect drilling and exploration drilling in the Aryskumskiy bending deflection: Aryskum, Maybulak, Southern Kumkol, Konys, Bektas, Kyzylkiya, Western Nuraly, Kenlyk, etc.

1986-1987. The Akshabulak area was identified by the common mid-point prospecting and regional onshore seismic survey performed by Turlanskaya geophysical expedition.

1988. The prospect drilling of the area was started.

1989. Upon testing of the interval 1806-1824, 4 m in the well 7, which was drilled in the top of the southern dome, oil-bearing capacity of the Jurassic sediments was established. The oil flow to surface with production rate of 142,3 m3/day was obtained. The oil-bearing capacity of the northern dome was established by the well № 11 in 1990. As a result of drilling of such wells, the following oil pools were identified: М-II-1, М-II-2 in the Lower Neocomian, U-0 in the Akshabulakskaya assise, U-I, U-II - in the Upper Kumkolskaya, U-III – in the Middle Kumkolskaya subsuite of the Malm.

1991. The prospect drilling of the area was started.

1993. The foundation agreement, initiated the establishment of “JV “Kazgermunai” LLP between JSC “Uzhneftegas” and group of the German companies (Feba Oil AG and Erbdol Erdgras Gommern GmbH) with assistance of the government of Kazakhstan has been signed:
- JSC “Uzhneftegas” - 50 %
- Feba Oil AG - 25 %
- Erbdol Erdgras Gommern GmbH - 25 %

1994. From 1988 till 1994, 9 prospecting and 7 exploratory wells were drilled and tested within the area of the structure of the Central Akshabulak.
The oil deposits of the pools U-III and M-II were explored in details as a result of the performed works. According to the identification status as of 01.09.95, calculation of the oil reserves of the main productive horizon “U-III” has been approbated and approved in SCR of RK.
“JV “Kazgermunai” LLP has been licensed for exploration of the Akshabulak, Nuraly, Aksai deposits by the competent body of RK.
On the basis of such License, detailed surveys of the oil deposits of U-III and M-II horizons have been performed. According to the identification status as of 01.09.95, calculation of the oil reserves of the main productive horizon “U-III” has been approbated and approved in SCR of RK.

1995. The world-famous German company “RVE-DEA AG”, which has acquired 25 % share from Feba Oil AG, becomes a new founder of the company.

1996. JSC “Uzhneftegas” has been privatized by JSC “Hurricane Kumkol Munay”.
According to the Minutes № 16 of the session of the Interdepartmental License Commission at the Ministry of Geology and Subsoil Protection of the Republic of Kazakhstan dated 15.04.1996 the Subsoil Use Licenses to the Akshabulak, Nuraly and Aksai deposits have been reregistered as for 3 independent facilities of subsoil use. In 1996-97 the Government of the Republic of Kazakhstan has issued several Licenses for subsoil use in RK at Akshabulak, Nuraly and Aksai deposits. On the basis of 3 Licenses, the Contract for Subsoil Operations has been signed on 28th of May 1996.
In the same year, development of the Central Akshabulak and Nuraly deposits according to the “Production Test Project”, production of the first oil of “JV “Kazgermunai” LLP has been started.

1997. The International Financial Corporation entering into the structure of the World Bank was added to the founders. The corporation has acquired 7.5 % of share interest from Erbdol Erdgras Gommern GmbH.
Thus, by that period the founders of “JV “Kazgermunai” LLP were: JSC “Hurricane Kumkol Munay” -50 %, RVE-DEA AG- 25 %, Gaz de France (owner of EEG GmbH) – 17.5 % and IFC of the World Bank – 7.5 %.

1999. Production of 100 000 tons of oil in February through development of Central Akshabulak and Nuraly deposits within the framework of the Production Test Project.

2001. In January, in the course of the pilot commercial development of the Central Akshabulak deposit and exploration of the Eastern Akshabulak, Nuraly and Aksai deposits, “JV “Kazgermunai” LLP has celebrated the production of the first million ton of oil. This indicator has defined the formation of the young oil producing company and its fast entrance into a number of the large oil producing enterprises of the Republic of Kazakhstan.

2003. JSC “Hurricane Kumkol Munay” has replaced the corporate name to the JSC “PetroKazakhstan Kumkol Resources” so as to state the type of activity of the company accurately and the country, in which the company carries out its activity.
In the same 2003, “JV “Kazgermunai” LLP has taken the next big development step, the enterprise has presented the detailed plan on acquisition, delivery, assembly and installation of the GPP (Gas- Processing Plant).

2004. The enterprise has extracted already 5 000 000 tons of oil. The essential increase in oil production has led to necessity for recycling of associated-dissolved gas through construction of GPP and supply of the tank gas to Kyzylorda city through 124 km new gas pipeline “Akshabulak – Kyzylorda”, and also production and delivery of the liquefied gas to the gas-consuming organizations.

2005. Thanks to implementation of the program on gas utilization and commissioning of GPP, the first supplies of blue flame natural gas to the Kyzylorda city were started.

2006. The new historical stage is beginning for the company: JSC “National Company “Kazmunaygas” acquires 50 % of the share in the Charter capital of “JV “Kazgermunai” LLP from RVE-DEA, EEG and IFC. Thus the enterprise is transferred by halves to the public ownership of the Republic of Kazakhstan.

2007. JSC “NC “Kazmunaygas” has sold its 50 % of the share in the Charter capital of JV of its affiliated company JSC “Exploration & Production “Kazmunaygas”. The participation of the Kazakhstan’s operator in development of the deposits has given a push to the development of domestic production.

2008. After just one year, when management of the company has been transferred to the JSC “ED “Kazmunaygas”, development of the deposits of JV has entered to the following stage, and annual oil production has reached more than 3 million tons. In the same 2008, “JV “Kazgermunai” LLP was celebrating the 15th anniversary from the date of the foundation of the company, and such celebration has symbolically coincided with production of 15 million tons of oil.

2009. Completion of the implementation of the project “Nuraly Deposit Development”.

2010. “JV “Kazgermunai” LLP is a socially responsible company, in support of this it can be also noted that to deliver more volume of the tank gas to Kyzylorda city the enterprise has constructed one more Gas-Processing Plant - GPP-2, thereby having increased a number of blue flame natural gas’s consumers.

2013 was significant and cheerful year for the Partnership, in which the company has celebrated the 20th anniversary. Not only the staff of Kazgermunai but also thousands of townspeople and guests of the city, who have become spectators of the various entertainment programs and grandiose gala concert at the central city square, were involved in this celebration. Also one of the most important indicators of the company has been reached - 30 million tons of oil has been produced in January.

In 2014 Aksai field was commissioned. Aksai oil reserves is much less than Akshabulak and Nuraly. However the rich gas field Aksai and the project for its development allows to establish gas production of company at level of 550 million m3 per year and provide a stable natural gas supply for the population of Kyzylorda. Due to the commissioning of Aksai field "JV" Kazgermunai " LLP the number of employees is increased from 720 to 742 people. Thus, the total number of production personnel comprises 555 people and 187 employees of the head office and representative offices in the cities Astana and Almaty.

2015 year. LLP “JV “Kazgermunai” picked up the gold award according to the results of the General state republican rating program on awarding of leading enterprises of Kazakhstan economy “Industry Leader” (oil and associated gas production) implemented on the basis of the data of the national statistical ranging.

2018 year. In 2018, the Partnership celebrated its 25th anniversary. The company's cumulative oil production amounted to more than 46 million tons.
"JV" Kazgermunai " LLP became an owner of Grand Prix Award" Paryz "in the nomination of " Best Socially Responsible Enterprise ". The competition was established by the head of state. The purpose of the contest is to encourage private entrepreneurs to address social issues.
Receiving the Grand Prix award was preceded by three "Paryz" won by the company over the years in various nominations: in 2010 - the company has won the third prize "Paryz" in the nomination of "Best Socially Responsible Enterprise" in 2011 – has won "Paryz" in the category of "Best collective agreement". In 2012 the company became the winner of "Paryz" in the nomination "For contribution to the environment."

2023. The Partnership turned 30 years old.

On 19 May, the term of the subsoil use contract was extended, which in the previous version was valid until 1 March 2024. After conclusion of Addendum No.7 between the Ministry of Energy of the Republic of Kazakhstan, JSC NC KazMunaiGas, JSC PetroKazakhstan Kumkol Resources and JV Kazgermunai LLP it is envisaged to extend the terms of subsoil use operations: on Aksai field until 1 March 2032 and on Nuraly, Akshabulak Eastern, Akshabulak Southern, Akshabulak Central, Aksai Southern fields until 1 March 2034.

Blog of the Board

Liu Shaoyou
General Director
Rinat Izmukhanbet
First Deputy General Director

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