ExxonMobil in Kazakhstan
ExxonMobil is one of the world’s oldest and largest international petroleum companies. The company is engaged in all aspects of the worldwide oil and gas business - exploration, production, manufacturing, distribution, and marketing. ExxonMobil is also a leading producer of petro-chemicals and has interests in coal, minerals and electric power generation. The company has subsidiaries or operations in about 200 countries and territories worldwide.
ExxonMobil is one of the leading international oil companies in Central Asia. In Kazakhstan, the company participates in the Tengizchevroil (TCO) joint venture, which is now producing and exporting oil from the giant Tengiz field. ExxonMobil also has an interest in the North Caspian PSA, in the Caspian Pipeline Consortium (CPC). Oil and gas development is bringing significant employment and educational opportunities for local people and also helps support the building of community needs, such as schools, hospitals, and other infrastructure developments in the communities in which we operate. As an interest-owner in three major energy projects in Kazakhstan, ExxonMobil is providing funding for jobs and training for thousands of Kazakh nationals.
Business Activities
North Caspian Consortium
ExxonMobil’s partnership with Kazakhstan started in 1993, when the company became the only US participant in the Caspian Sea Consortium, which at that time was studying the hydrocarbon potential of the Kazakh sector of the Caspian Sea. Following the completion of the CSC studies in 1996, the consortium participants selected 12 blocks for further exploration. A new consortium, the Offshore Kazakhstan International Operating Company (OKIOC) was set up to carry out this exploration work. ExxonMobil holds a 14.29 percent interest in OKIOC. The first well, Kashagan East-1, was completed and a world class discovery announced in July 2000. The second successful well, Kashagan West-1, was completed in May 2001. In early 2001, OKIOC shareholders selected Agip as single company operator.
Tengizchevroil Joint Venture
ExxonMobil also holds a 25 percent interest in the Tengizcheroil joint venture. Gross production from the field has increased from 100 to 285 thousand barrels per day since the company acquired its interest in 1996. A new expansion project is underway to increase production by another 220 thousand barrels per day in late 2005. Citizens of Kazakhstan now comprise 72 percent of all TCO staff, compared with about 50 percent at the start of the partnership. In addition to the more than 2,200 Kazakh employees, contractors employ about 5,000 Kazakh citizens to support the operation.
Caspian Pipeline Consortium
ExxonMobil holds a 7.5 percent interest in the Caspian Pipeline Consortium. This consortium is constructing a pipeline to transport oil from Tengiz to the port of Novorossiysk on the Black Sea. Filling of the Kazakh portion of the pipeline began on March 26, 2001.
Community Investment
Worldwide, ExxonMobil has a long tradition of supporting the communities in which we operate. Working together with local governments, international relief organizations and communities, we help alleviate hardship and improve living conditions of the most needy people in the countries where we do business. We are also committed to maintaining a dialogue with communities so that they fully understand how our operations may affect them.
ExxonMobil is an active supporter of community and cultural programs in Kazakhstan. Support for community service and education has been a major priority. ExxonMobil sponsors the activities of the National Foundation in Support of Culture. A major goal of the Foundation is to promote young Kazakh talents by provision of scholarships and support for their participation in international arts contests and festivals. The company also sponsors English lessons on the national Russian and Kazakh TV channels and English language centers. ExxonMobil provides supplies and equipment to orphanages and schools, supports Baiseitova Music School, Historical Ethnographical Museum of Dolls and the «Berel» archeological site research. ExxonMobil provided funding for the first English translation of a book on the history of Kazakhstan’s rich cultural tradition, entitled «The Nomads», which was recognized with a foreword by President Nursultan Nazarbayev.
The company takes an active position on environmental issues. That is why ExxonMobil sponsors environmental summer camps for children across Kazakhstan and participates in planting trees actions jointly with the Tabigat Environmental Fund.
ExxonMobil also sponsors sports programs. Among the main projects are the «Kazakhstan» Sports Complex construction project in Astana, the First Kazakhstan Paralimpic Games, Special Olympics Kazakhstan and the Volleyball Association of the RK.
The company has also been helping to support the Diabetes association of Kazakhstan for many years. Due to ExxonMobil’s contributions, several consultation centers have been established with a number of volunteers throughout the country.
ExxonMobil also sponsors international conferences, which highlight Kazakhstan as a good place for foreign investment. These include the Kazakhstan International Oil and Gas Exhibition (KIOGE) and the Eurasian Economic Forum.
As a co-venturer in the North Caspian Sea PSA and in the Tengizchevroil joint venture, ExxonMobil is assisting with development of social infrastructure in the Atyrau and Mangystau regions. Every year the North Caspian Sea PSA consortium allocates $5 million for community projects including public housing, education, health care and sports facilities. TCO is providing similar support for social infrastructure for the local community. For 2000, $5 million was allocated for the “Egilik” program. These funds were allocated to three major projects in Atyrau, including refurbishment of Atyrau University, the Ural River embankment and beautification of the City. For the year 2001, $ 3 million will be allocated to the Zhyloi Region where Tengiz field is located and $ 3 million will be allocated to Atyrau.
In February of 2001, in recognition of ExxonMobil's great community contribution, President Nazarbayev awarded the company with a Diploma of Honor and a Medal for Philanthropic Activities in Kazakhstan.
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