As part of a working visit to Shymkent city, the RK Prime Minister Alikhan Smailov visited an oil refinery PetroKazakhstan Oil Products LLP producing various types of gasoline, diesel fuel, jet fuel, liquefied gas, fuel oil and other oil products for the domestic market. The President of the company Mr. Ye.O.Kozhabayev acquainted the Prime Minister with the production activity of the enterprise. 

In 2018, the enterprise went extensive modernization and revamping as part of the State Program for Industrial and Innovative Development. This allowed the refinery to introduce international experience in automation and digitalization, improve production processes, and expand the range and quality of oil products.

The RK Prime Minister A. Smailov noted that the annual consumption of oil products in the country, especially during the periods of field work and the heating season, is increasing.

“Currently, taking into account the growing needs, the issue of expanding the Shymkent refinery from 6 to 9 million tons is being worked out. This will not only help resolving the issue of saturation of the domestic market, but will also provide additional employment for city residents,” he said.

The Prime Minister added that today the government is reforming the fuel market, including switching of all three refineries of the country to the marketing principle of work.

PKKR JSC signed a new collective agreement for 2022-2025.

On August 10 of current year, “PetroKazakhstan Kumkol Resources” Joint Stock Company signed a new collective agreement between the employer and employees for a period of three years.

The moderator of the important event was the Deputy Chairperson of the Board of Governors Sufiya Daminova. An important document was signed by Zhao Xiaoming, Chairperson of the Board of Governors of PetroKazakhstan Kumkol Resources JSC, and the interests of employees were represented by Bakhyt Mukasheva, Chairman of Trade Union Committee of PetroKazakhstan Kumkol Resources JSC.

The signing of a new Collective Agreement is an important event in the life of the labor collective of “PetroKazakhstan Kumkol Resources” JSC. Its signing was preceded by a wide discussion of the project in labor collectives — workshops, departments. Both sides admit that the negotiations were not easy, however, as a result of a constructive dialogue, it was possible to reach agreement on almost all major issues.

The new version of the collective agreement preserves and improves the main positions in the social sphere, designed to ensure decent and safe working conditions.

“I heartily congratulate the labor collective on signing the new contract, I’d like to thank our colleagues and everyone who participated in its development”, Zhao Xiaoming said in his turn. – Very often, the effectiveness of the company’s activities depends on the agreement within the collective, the solidarity of employees and employers. And I am very glad that together we managed to come to an agreement and sign such an important document”.  

The importance and timeliness of signing a new collective agreement was noted by the leader of the trade union committee Bakhyt Mukasheva:

“A huge joint work has been done. The new collective agreement turned out to be reasonably balanced  and deeply developed. I would like to thank the bilateral commission for its constructive and productive work. Congratulations to everyone on the approval of the new collective agreement”.

The oilmen were also congratulated by the Chairman of the territorial association of trade unions “Kyzylorda Regional Center of Trade Unions” Maksut Nalibayev, who noted that with the new collective agreement, employees will feel confident in the future, which ultimately will have a positive impact on the company’s production activities.

Public Relations Department. 

Akim (Governor) of the South Kazakhstan region Zhanseit Tuimebayev, Senior Vice President for Oil and Gas Processing of Kazmunaygas Daniyar Tiyessov, General Director of CNPC in Kazakhstan Bian Dezhi, PKOP top management represented by President Jiang Shi and First Vice President Askar Turisbekov, as well as representatives of a number of subcontracting companies participated in the launch ceremony.Adding this unit with a capacity of 600,000 tonnes a year to the refinery process scheme will increase the production of high-octane gasolines meeting up-to-date emission standards by 460,000 tonnes a year.

Pre-commissioning works began March 31 and implementation of the modernisation project began in January 2014. That was preceded by a feasibility study, estimates and state reviews.The project created 2,500 construction-phase jobs and over 100 permanent jobs for the operation of the first stage facilities, including 45 for the isomerisation unit. Professional training of employees was arranged at the Atyrau Refinery and the Guangxi Refinery in China.In April 2017, Kazakh Minister of Energy Kanat Bozumbayev inspected the facilities of the first stage of the modernisation and instructed to ensure production of high-octane gasolines of K4 and K5 emission standards by July 2017. The refinery has met the deadline.

On June 23, the first on-spot oil product loading unit with the capacity of 2.5 million tonnes/year, ensuring closed-dome loading of oil products into rail tank cars, was put into operation in Kazakhstan. Also, within the framework of the first modernisation stage a Diesel Hydrotreater with the capacity of 1.5 million tonnes/year, a sulphur plant with the capacity of 4,000 tonnes per year and off-sites have been already put into operation.Currently, the refinery is continuing the construction of facilities under the second modernisation stage, the purpose of which is to increase the refinery throughput to six million tonnes a year and the conversion rate with the project completion in September 2018.

Football session

The holiday camp “Arai-Sunrise” ended with traditional oblast football tournament among school children for the prizes of “Petro Kazakhstan Kumkol Resources”. This year it was attended by nine teams from 7 regions of the oblast, city of Kyzylord and Baikonur city. The award ceremony of the winners took place on the last day of the sport session.
Organizers of the tournament are oblast department of physical culture and sports and “PKKR” JSC. 
As you know, each year in the camp “Arai-Sunrise” the last session is – sports. The young football players of 13-14 years old are gathered here. Practically almost all of them are experienced players, as they train for five or six years. During the rest the guys not only gain strength for the new school year, but also compete in skill. As in the previous years, the battle on the football field heated seriously. Particularly the team from Syrdaria region surprised the all. As coaches tell, in previous years the guys did not show much zeal for victory, and this year they were well prepared and were quite a bit behind the winner of the tournament.
As a result, the first place went to the team from Kyzylorda, the second place – Syrdaria region, and third place – the team from Baikonur city. 
As the coach of Baikonur team Timur Atagulov said, they participate in this tournament for the second time. 
– Competitions were organized at a high level – he said. – You could say that everything was “adulty”, that the guys were much disciplined, forced to give all to the fullest. Such events bring up young players with fighting qualities, team spirit, learn to overcome difficulties. They prepare a good change for football teams of the republic. Many thanks to the sponsors of the tournament, because it’s a real sports celebration for children. And there is also a wonderful vacation. Now, with new forces they return to school in the new academic year and with a great enthusiasm they to continue exercising. 

At the award ceremony, the awards to the winning teams were handed by department manager of Public relations of “PKKR”JSC Aktolkyn Sultangereeva and head of the department of mass sports of oblast department of physical culture and sports Galym Sikhymov. The winners received diplomas and valuable prizes from “PKKR” JSC.

 The best players were also noted for nominations. As the best goalkeeper was found Aset Shymkentov (Shiely region), the best defender – Ruslan Almasuly (Zhanakorgan region), the best midfielder became Ernar Samuratov (Aral region), the best forward – Aidos Sovet (Kazaly region). The best bomber by decision of judges considered the 11-year-old Dias Sagynbay from Zhalagash region. In this tournament he was the most productive player – totally eight scores on his account. As told Dias, he plays football from 6 years old. He participated in such events for the first time.
– I really enjoyed the camp, – he says. – Here is an excellent living conditions, tasty food, time passed quickly. I am very glad I was here. Many thanks to the company “Petro Kazakhstan” for the tournament and for the prize. Our team took second place last year. Hope, next year we will achieve the best results.The best coaches were also awarded – Nurlan Bayshorayev from Kyzylorda and Bolatbek Zhumanazarov from Aral region. For the fair refereeing the following judges were noted with diplomas and memorable gifts – Maksat Azhimbetov, Alexei Kuberski, Abzal Zhakhanov and Erkyn Zhantuganov.

The meeting of company management with young geologists took place in AO “PetroKazakhstan Kumkol Resources” office, which represent our region at the IV Kazakhstan Field Olympics of young geologists.
The competitions of young geologists took place in the children’s recreation center “Star”, located on the territory of Schuchinsk-Borovoye resort area in the Katarkol village Akmola region. Olympics organizers – Corporate Fund “Zhas Geolog”, with the support of the Ministry on Investment and Development of RoK, Committee of geology and subsoil use MiR RoK, the National Geological Prospecting Company “Kazgeologiya”.
In the competition participated pupils of secondary schools and colleges of 21 teams from Kazakhstan, Russia and Kyrgyzstan. Our country was represented by groups from Almaty, Atyrau, Aktobe, Mangistau, Ust-Kamenogorsk, Petropavlovsk and Kyzylorda.
Young geologists of “Adamas” team defended the colors of our region. Participation of young Kyzylorda people in the field competition became possible due to financial support of AO “PetroKazakhstan Kumkol Resources”. Company took over the costs of equipment, travel expenses, purchase of applications and geological materials, etc.

– Geologist profession – one of the priorities for Kazakhstan, which has a variety of minerals and rich fields of various metals, – said Chairperson of the board of AO “PKKR” Qin Hongwei. I believe that this Olympics will help you in the future to make your choice on profession of geologist and become discoverer of subsoil. This is the first experience of Kyzylorda team in such competitions. Hopefully in the future the results will be better. Just want to point out that with their success they glorified the entire region, because at the Olympics they performed not from the company, but from the entire region.
– The team included eight high school pupils from the Kazakh-Turkish lyceum for gifted children № 9, school-gymnasium № 1 after Kaltay Mukhamedzhanov and school №2 “Murager”, – said one of the delegation leaders, a geophysicist of AO “PKKR” Yerken Umbetkulov. – They have been selected after testing in April. Then we start the preparation for Olympics – they taught theory, practiced at the fields. The team was named as “Adamas” meaning the diamond.
One of the leaders of “Adamas” Bogenbai Yerzhanov, geologist of AO “PKKR” thanked the Chairperson of the Board of AO “PKKR” Qin Hongwei for provided support to pupils and handed him a letter of thanks from the Chairperson of the Committee of Geology and Subsoil Use of the Ministry of Investment and Development of RoK, Bazarbai Nurabaev.

– The “PetroKazakhstan” company, in particular, works on occupational guidance of Kyzylorda youth, rising of interest among school pupils to study of geological sciences, – says Bogenbai Yerzhanov. – Field Olympiad of young geologists gave the pupils an excellent opportunity to realize their knowledge into practice, to use all their theoretical knowledge on paleontology, petrography, mineralogy, hydrogeology, geology of mineral resources.
As a result of the competition in the team classification the first place took the team of “Rudny Altai” from Ust-Kamenogorsk, the second – “Akpan” (Aktobe), the third – “Atyrau”. Kyzylorda team “Adamas” in his debut season took the fifth place! None of the experts did not expect such a successful performance from the young geologists of Syr Land. In the list of our team were Islambayev Diaz, Kaymov Sanzhar, Aiguliyev Zhanibek, Ali Tilek, Azamat Mukhtar, Arman Pirmanov, Azimkhan Shansharkhan and Nurymzhan Sapar.

Public Relations department

The internal audits in the structural subdivisions of the refinery for compliance with ISO 14001:2004 Ecological Management System, OHSAS 18001:2007 and 50001-2012 RK SR Energy Management System are conducted as per the internal audits program, agreed and approved by top management. 
Environmental Management Standards
• Ecological Management System (EMS), as required by ISO 14001:2004 International Standard requirements. Introduced in 2008. The Company has the Ecological Management System compliance certificate in the following sphere of activity:  “Processing, transportation and storage of crude oil and oil products” #2008/32179.2 of AFNOR Certification International Company. The Certificate is valid until 03.09.2017.

Up to date, the ecological aspects of all production processes have been identified, the risks have been evaluated, and the preventive measures have been determined. The equipment items have been ranged based on the environmental hazard degree in case of deviations from their standard mode of operation. The input streams of the most ecologically hazard substances in the feedstock, as well as the chemicals for production processes, are being controlled quantitatively.
The monitoring system for environmental (atmospheric air, water and land recourses, greenery, snow cover, radiation state) pollutant emissions and for natural environment state is in operation in the Company. An instrumental control of impact is exercised by own Lab for Water and Air Monitoring and Chemicals. High resolution capacity of this system ensures taking timely measures to prevent any deviations.
The Management System effectiveness is checked on a quarterly basis, as well as during internal and external audits, and during annual analysis conducted by the top management. It is planned to constantly improve the management system, while determining new tasks. The Company has implemented the integrated management system of quality, ecology, energy and labor protection.

Second Birth of Shymkent Oil Refinery

Shymkent oil refinery is experiencing a rebirth the year of its 30th anniversary. After completion of the ongoing work on modernization and reconstruction of the refinery, the depth of processing will increase and the production rate will reach 6 million tons of oil per year, and the refinery will produce the motor fuels of the ecological classes K4 and K5, in accordance with the requirements of the technical regulations of the Customs Union.

Construction of a new refinery in southern Kazakhstan began in 1972, with the installation of LK-6U, which is still the core of the refinery. During that year, the non-standard equipment shop was built, followed by an idle period, since the construction works began simultaneously at several refineries: in Ukraine, Russia and Belarus. Works at the site near Shymkent resumed in 1976, with the construction of auxiliary shops. In 1978, two new facilities were put into operation: shop for water supply, sewerage and treatment facilities for the existing thermal power plant (TPP)-3, which provides the thermal energy for the industrial zone of the city, as well as transportation artery of the refinery-its commodity shop.

Finally, by 1983 the first batch of oil was received for refining from Western Siberia via “Omsk-Pavlodar-Shymkent” pipeline. On April 11, the first train was loaded with”black gold”, which went for processing to the Fergana refinery. In mid-1984, a number of facilities, including the steam-water-air supply shop with subdivision of nitrogen-oxygen station, central condensate station, air compressor unit and the central laboratory. These are the facilities, needed for  launching LK-6U. The first Shymkent gasoline was produced here on January 28, 1985!

This day was a real celebration, crowning the work of thousands of people, who designed and  launched the refinery. High-class specialists, who subsequently became the founders of worker dynasties, were invited to ensure the smooth operation of the equipment from different refining regions of the Soviet Union – Guryev, Pavlodar, Fergana, Ufa.

In August 1985 two more sections were commissioned: sections 200 and 300, and in January 1986, they were followed by the gas fractioning unit-section 400. In the spring of 1986, the refinery started its operations in full, with planned production rates, achieving the capacity up to 6 million tons of oil annually.

On February 12, 1996, the South-Kazakhstan Territorial Committee on State property established a joint-stock company ShymkentNefteOrgsyntez (ShNOS) on the basis of the Shymkent oil refinery. After the collapse of economic connections within the Soviet Union, the refinery faced the acute problems with crude oil supply. Instead of the West Siberian oil, which is relatively heavy one, with low paraffin content and medium sulfur content (refinery was designed for such specifications), the oil refinery started receiving the oil from Kumkol field, located in Kyzylorda region. Kumkol crude oil  has low sulphur and high-paraffin content, and in the beginning there were the difficulties, related to production of diesel fuel and kerosene. The diesel hydrotreating unit was reconstructed in 1998, and in year 2001 a new technology was introduced for jet fuel production.

Since 2000 the refinery is owned by Petrokazakhstan company (former Hurricane Hydrocarbons Ltd.), and in 2005 PetroKazakhstan was acquired by CNPCI, a subsidiary of China National Petroleum Corporation. In 2007, Shymkent refinery got  another shareholder, represented by the  National Company KazMunayGas with 50% ownership. Thus, ShNOS was first transformed into Hurricane Oil Products LLP, and later  to  Petrokazakhstan Oil Products LLP (PKOP). Since then, the success of the refinery guaranteed by its two strong shareholders, represented by the relevant national companies from two states: Kazakhstan and China.

After a quarter of century it became apparent that the refinery became outdated. Level of oil processing and output of light oil products did not meet the requirements for the modern refineries and the environmental quality specifications for gasoline were strengthened in the country. Moreover, the same situation existed in another two refineries: in Atyrau and in Pavlodar. In this connection, the Government has developed a program of the oil refining industry upgrade in Kazakhstan. In October 2010, the Government approved the  programme for the Oil& Gas Development in the Republic of Kazakhstan for 2010-2014, which included the reconstruction and upgrading of Shymkent oil refinery.

The upgrade project has also been included in the State program of Industrial &Innovative Development of the Republic of Kazakhstan for 2010-2014 and 2015-2019, approved by Decree of the President of Kazakhstan and it was listed among the strategic investment objects of the Republic of Kazakhstan, approved by decision of the Government of the RoK.

The project of reconstruction and upgrading the Shymkent oil refinery is implemented in 2 phases. During the first phase, the project stipulates construction of new and reconstruction of existing technological facilities and plants to ensure the release of motor fuels of environmental grades K4, K5, in accordance with the requirements of the technical rules of the Customs Union. It is similar to European standards Euro-4 and Euro-5, adopted in the countries of the Customs Union. The first phase projects: construction of the isomerization unit; construction of sulfur production facility with capacity of 4 000 tons per year; reconstruction of diesel hydrotreatment unit – section 300.

The second phase includes construction of new and upgrading the existing technological units and facilities to restore production capacity up to 6 million tons annually and to increase the processing level:

• catalytic cracking RFCC;
• hydrotreament of gasoline “Prime G +”;
• gas demercaptanization “Merox”;
• production of ETBE additives;
• production of sulfur, hydrogen purification, etc.

Currently, the feasibility studies, design and estimate documentation are ready. The first phase is under implementation now-  reconstruction of diesel fuel hydrotreatment (section 300) is partially completed; K5 diesel was obtained for use in summer mode; construction of sulfur production reached its final stage, the commissioning works are ensured; development of working documentation, placing orders for equipment and construction-assembly works on isomerization unit. On January 16, 2015, the EPC contract was signed with the general contractor –  Kazakhstan Branch CPECC (Kazakh branch of China Petroleum Engineering and Construction Corporation, subsidiary company of CNPC Corporation (China) for implementation of the second phase; currently, the working documentation is being drafted and the orders for equipment are in process. In accordance with the schedule, the Project completion is planned for 4 quarter of 2016.

After completing the Project of reconstruction and upgrading the Shymkent oil refinery, the production of oil products will increase:

• high-octane gasolines-from 735 to 2 162 thousand tons per year;
• diesel fuel- from  1 346  to 2 013 thousand tons per year;
• jet fuel-from 280 to 400 thousand tons per year.

In addition to increasing the light crudes yield (share of high-octane gasoline in total gasoline pool will amount to 100%), the Project of reconstruction and upgrading the Shymkent oil refinery will also resolve some important social issues in the region, including creation of new jobs in Shymkent and improvement of ecological  safety in the southern region of Kazakhstan.