China Kazakhstan energy cooperation brings tangible benefits to more people (jointly building the "the Belt and Road", the first site) Cooperation | Project | China Kazakhstan
Employees of CNPC Aktobin project are working at the project site.
Photo by Feng Weiping
Driving on the sparsely populated land of Kazakhstan, one often sees very familiar gas stations on the roadside. The red roof and red and yellow signs are the gas stations operated by China National Petroleum Corporation in the local area.
China National Petroleum Corporation (CNPC) has successfully won the bid for the development project of the Aktobin Oilfield in Kazakhstan, marking the beginning of China Kazakhstan oil and gas cooperation. At present, China Kazakhstan oil and gas cooperation has formed a complete upstream, midstream and downstream industrial chain integrating oil and gas exploration and development, pipeline construction and operation, engineering technical services, oil refining and sales, which has become a successful practice of the two countries in jointly building the "the Belt and Road". The rapid development of the Aktobin project is composing a beautiful story of friendly cooperation between China and Kazakhstan.
"We are contributing to the construction of a closer Central Asia China community with a shared future through energy cooperation."
"Our project was discussed while eating instant noodles," Chen Dayou, Senior Vice General Manager of CNPC's Akqubin Project, recalled the scene back then, when the facilities in the Akqubin oilfield were outdated and crude oil exports were temporarily interrupted. "In order to bring more bags of instant noodles, everyone reduced their other luggage. As autumn approached, the local temperature plummeted, and some colleagues had to sleep in bathrooms with hot water. The first greenhouse for vegetables here was also built after our cooperation."
In the past 10 years, CNPC Aktobe has also grown from an oil field production enterprise with heavy debts and single business at the initial stage of acquisition to a large comprehensive oil and gas company in Kazakhstan due to the significant opportunity of jointly building the "the Belt and Road". Over the past 20 years, the project has produced nearly 150 million tons of oil and over 80 billion cubic meters of natural gas. According to Li Shufeng, the General Manager of the Aktobin Project, the company is currently the sixth largest oil production enterprise in Kazakhstan. Currently, crude oil production accounts for 60% of Aktobin Prefecture, and natural gas production accounts for 75%. The oil and gas production in Kazakhstan has increased from an initial annual production of 3 million tons of crude oil to an annual production of 30 million tons of oil and gas equivalent, directly and indirectly providing employment for about 20000 local people. Bujianko, the head of the Asian research project at the Eurasian International Research Association in Kazakhstan, said that Aktobin Company is one of the most important enterprises in Aktobin Oblast.
In a hotel in Aktobin state, the reporter found that there was a clean metal pipe in the bathroom that was heating up. The hotel staff told reporters that in present-day Aktobin state, natural gas prices are cheap, and such a pipeline can not only provide heating but also dry clothes, which is a win-win situation. Who would have thought that the local people once faced a difficult situation of not having enough gas to use. To solve the problem of "difficult gas consumption", Aktobin Company invested in the construction of a natural gas export pipeline connecting the Jeanner Oilfield and the international pipeline KC13 booster station. Natural gas that has undergone desulfurization and purification treatment and meets relevant international standards is not only transported to the international market, but also enters residential areas along the Aktobin pipeline. Until today, the project still provides natural gas at discounted prices for local residents and businesses.
As an alumnus of China University of Petroleum, Yesingulov stated that he is a witness and beneficiary of the development of relations between Central Asia and China. He is willing to continue sincere cooperation between Central Asian countries and China, promote deeper energy cooperation between the two sides, and enable more people to benefit.
"Effectively promoting the modernization process of Kazakhstan's petroleum industry and the development of related industrial fields"
Standing in the control room, watching the numbers and monitoring footage on various screens, Wang Yanfeng, Senior Vice General Manager of the Aktobin Project, who has been working on the project for over 20 years, told reporters that large oil and gas groups from European and American countries entered Kazakhstan earlier, and many oil fields with low production costs and good conditions were mostly acquired by these companies. "At the beginning, the Harbin side did not have a special understanding and trust in us. We gradually moved the Harbin side by relying on various excellent production indicators and professionalism."
The high oil to gas ratio and the presence of hydrogen sulfide are major challenges for the Aktobin project in oil and gas development. In the last century, the associated gas from the Naroer oilfield could only be released and burned, resulting in severe resource waste and environmental pollution. Since 2000, Aktobin Company has successively invested in the renovation and construction of three oil and gas processing plants, implemented natural gas comprehensive utilization projects, extinguished the flames that had been burning for nearly half a century, and increased the comprehensive utilization rate of associated gas from 27% to nearly 90%, enriching natural gas supply and greatly improving the ecological environment. Among them, the third oil and gas processing plant has been listed as the first breakthrough project to achieve the national plan of "30 enterprise projects" in Kazakhstan.
There are often salt layers distributed underground in the Caspian Sea Basin of Kazakhstan. The Kenkiyak subsurface oil field is buried under a thick salt hill and has been undeveloped for over 20 years. It was once considered by Western and local oil companies as an "uneconomical oil reservoir.". "The oil reservoir is located more than 4000 meters underground, with a salt rock layer in the middle of more than 3000 meters. The drilling cycle is particularly long, and the underground pressure is too high, making it easy to experience blowout and a high risk factor." Wang Yanfeng introduced that since 2000, the company has mobilized experts from various fields such as drilling and development in China, conducted joint research and systematic research in multiple disciplines and disciplines, and formed a set of efficient development supporting technologies. Finally, a thousand ton well was born on the grassland. At present, PetroChina has drilled 26 wells here with a success rate of 100%.
In recent years, multiple oil fields in the Aktobin project have been in the middle and later stages of development, making it more difficult to stabilize production and increase production. The Balem Reservoir, located at the top of the Kenkiyak Salt Field, has abundant reserves but has not been effectively developed due to shallow burial, severe sand production, and low cold recovery yield. The company collaborated with Xinjiang Oilfield Company, which has rich experience in heavy oil reservoir development and management, to establish a technical support team that is linked domestically and internationally, and successfully developed the Balem oil reservoir. In 2021, the Balem Reservoir will help push the production of salt oil fields to reach a peak of 500000 tons.
As of the end of July last year, through technological innovation to tap potential and increase efficiency, PetroChina has successfully restored production from 14 "lying down wells", with a cumulative increase of 6926 tons of oil. Yegorov, Chief Researcher of the Economic Research Institute of the Science Committee of the Ministry of Science and Higher Education of Kazakhstan, believes that "Over the years, PetroChina has actively participated in the modernization of Kazakhstan's oil and gas projects, effectively promoting the modernization process of Kazakhstan's petroleum industry and the development of related industrial fields."
"The all-round cooperation between Kazakhstan and China in the oil and gas field plays an important role in Kazakhstan's social and economic development."
The office of Mira Nazbekova, the head of the External Relations Department of the Aktobin Project General Manager's Office, is not large and is decorated very exquisitely. The glass cabinet against the wall is filled with various medals she has won in the enterprise. In 2008, she went to China to study under the funding of the Aktobin Project and obtained a Master's degree in Geological Engineering from China University of Petroleum in 2015. Due to her positive work attitude and excellent coordination skills, Nazbekova was awarded the Outstanding Contribution Award in Kazakhstan's oil and gas industry in 2021. Not long ago, she was selected as one of the 30 female leaders in Kazakhstan's oil and gas industry. There are still many employees like Nazbekova at Aktobin Company. As of now, the company has selected a total of 234 international students to study in China, and there are still more than 30 students pursuing further education in China. Nearly 20 of them have already held high-level positions in enterprises.
"When we arrived in Kazakhstan, we quickly felt the challenge of cultural differences." In the company cafeteria, while eating Kazakhstani home cooked horse meat stewed noodles, Li Shufeng introduced that based on the principle of seeking common ground while reserving differences, the project management conducted a lot of research and found an effective method to promote cultural integration within the company. Aktobin project union leader Ahebar said that the project not only improves the living conditions of employees, but also provides a rich cultural life. There are many ethnic groups in the local area, and the cultural backgrounds of employees are different. However, they are now as close as one family, and major festivals of all ethnic groups are celebrated together in the company. Some festival activities even have a small reputation among the urban residents. "During the traditional Kazakhstani festival 'Nawuluzi Festival', everyone goes to the city center square to taste delicious food. The food tent we built in our project is particularly popular every year."
Not far from the company office building, the Aktobin Art Center is unique. Entering the center, there are photos of well-known Kazakhstani artists hanging on the walls. At the corner of the second floor, there is a portrait of the well-known Kazakh singer Dimash in China today. Li Shufeng smiled and said that, in total, Dimaxi is also a "family member" of the Akqubin project, and his grandfather is a senior employee of the Akqubin project. In the central music hall, the local band is rehearsing for the special performance "Gold Rock Selection" on stage. Seeing the reporter's group, the band conductor stopped and waved at us with a smile. Volunteer Ah Xia from the center told reporters that while Chinese enterprises have achieved their own development, they have never stopped benefiting the local people. The Enba Jannarol Railway, which is used for commuting between oil fields in the Aktobin project, is Kazakhstan's first railway constructed by foreign investors. The Kazakhstan National Dance Academy, which participated in the construction of the project, can cultivate students from first to eleventh grade, providing opportunities for local youth to pursue their artistic dreams. In addition, the Aktobin Table Tennis Center built with the assistance of Chinese enterprises and the Aktobin Company employee children summer camp have made the cooperation between China and Kazakhstan more deeply rooted in people's hearts.
"Kazakhstani President Tokayev emphasized that comprehensive cooperation between Kazakhstan and China in the oil and gas field plays an important role in Kazakhstan's social and economic development." Hu Hongmin, Deputy General Manager of PetroChina Central Asia Russia Company, introduced that over the past 20 years, the Aktobin project has won the "Best Social Contribution Presidential Award" three times. "In the future, China Kazakhstan oil and gas cooperation should not only continue to consolidate traditional energy cooperation, but also strengthen cooperation in the field of new energy and clean energy. Based on China Kazakhstan oil and gas cooperation, the prospect of jointly building the the Belt and Road is bright."
"We are the witnesses and builders of the the Belt and Road cooperation, and we are confident to take advantage of this major opportunity to promote high-quality and sustainable development of the company and make our due contribution to the benefit of the people of China and Kazakhstan," Li Shufeng said.
