Trust potential

The world consumes 84 million barrels per day. Year by year this figure increases. Moreover statistics testifies that within the last 20 years black gold was discovered less than it was consumed. For this reason the news that the first exploration well in the «Pearls» project within Kazakhstan Sector of the Caspian Sea indicated the presence of hydrocarbons was perceived with optimism among all participants of world gas production sector.

The exploration well on the structure «Khazar» in the «Pearls» contract area, which indicated the presence of hydrocarbons, was drilled by Operator, participant of which is Kazakhstan offshore oil company- JSC OOC «KazMunayTeniz». Today we will talk to its General Director, Yermek Marabayev, about the company's plans, activity and future prospects.

— Yermek Nasibkaliyevich, you have been recently appointed as General Director of the company. What have you faced since your appointment as a chief executive officer?

— It is true, I have recently become a general director, but I am quite familiar with the company's specificity, because prior to this position I worked as First Deputy General Director. That is why it is needless to say that I have faced something unknown, on the contrary, all processes, ongoing within the company, are close and clear to me. In our work we tend to meet the requirements of our sole shareholder — JSC NC «KazMunayGas», i.e. to work to solve the tasks set before us: to become a reliable, qualified and efficient company on hydrocarbon exploration and production in Kazakhstan sector of the Caspian Sea. To execute this instruction the parent company renders assistance in every way, without its financial and methodical support the accomplishment of our mission would be impossible. In spite of the fact that in March 2007 the company passed only 4 years, great experience has been gained proceeding from the company's specificity and mission — accelerated exploration and development of oil and gas fields in the Caspian Sea. We are the first, whom the country trusted the destiny of attractive offshore oil projects. This fact itself requires a special approach and high responsibility. The personnel, who were tasked to manage, was formed under the supervision of famous oilmen in our republic, such as B. Izmukhambetov, A. Balzhanov, B. Khassanov, K. Ibrashev and it is a pleasure for me to continue this responsible baton.

— Yermek Nasibkaliyevich, you are a hereditary oilman and a person, who at present has a valuable experience in local and western companies. Having become General Director of the company, what tasks do you intend to solve first of all?

— To be recognizable in the world. We have healthy ambitions, for this we will aim to become a modern oil and gas company, which can be instructed with responsible and complicated projects. At present the personnel, whom I manage, have been set the task to master the mechanism of considering and making correct decisions on all types of offshore operations, using up-to-date planning methods and procedure management systems. We want not only to adopt this experience but also to adopt management system for procedures and projects specifically to our case. As the experience testifies the optimization of business -processes allows essentially to raise the company's effectiveness in general. Today it is a pledge for the company's efficient activity in the future. This is precisely why we are working to make sure that widely recognized management standards are implemented in «KazMunayTeniz».

— Obviously, this transfer to new procedure management systems is connected not only with the spirit of time but also with the fact that JSC OOC «KazMunayTeniz» actively cooperates with world famous companies.

— Certainly. Working on a number of projects with world leading oil companies, we must comply with high requirements. In order to decrease a risk of making wrong decisions, the procedure for these issues regulation seems to me as the only correct way to move forward. Our task lies in successful adoption of the latest technologies and accumulated experience to the company's working conditions. The key criteria in selection of procedure management system, necessary for us, will be how through it we can raise effectiveness of activities related to hydrocarbon exploration and production, thereby observing industrial safety with minimum negative environmental impact. As for cooperation, practically each our project is implemented jointly with foreign partners. «KazMunayTeniz» is currently implementing five projects with foreign companies. Within signed agreements we work on the projects «Tub-Karagan» and «Atash» jointly with «Lukoil Overseas Shelf  B. V.», «Kurmangazy» with «Rosneft-Kazakhstan». Since February 2006 our company has been a managing director of «KMG Kashagan  B. V.», which was assigned with shares (8,33%)of JSC NC «KazMunayGas» as per Production Sharing Agreement in respect of the North Caspian Sea. «KazMunayTeniz» is an active participant of the «Pearls» project. The project partners are «Shell EP Offshore Ventures Limited» and «Oman Pearls Company Limited». The first exploration well on the structure «Khazar», located in the «Pearls» area, indicated the presence of hydrocarbons. It is another good evidence of high hydrocarbon potential of Kazakhstan Sector of the Caspian Sea.

— High concentration of activities in the northern part of the Caspian Sea creates load on environment, flora and fauna of the region. What environmental policy does the company adhere to?

— The conservation of nature balance in the region is the most important component of our company's policy and strategy. The company strictly follows national and international environmental laws. Efficient combination of management, environmental measures and modern technologies implementation allows to talk about minimum environmental impact. «KazMunayTeniz» is currently carrying out activities on «zero discharge» principle. Industrial and domestic wastes are collected in special containers on the drilling rig, further they are transported onshore for further utilization on special landfills. We hope that our accident-free activity on exploration of prospects and construction of wells will not make any environmental impact. For this purpose, performing exploration activities, we use advanced and world standard technologies, mechanisms and instruments. We constantly conduct ecological monitoring of the company engaged projects. So far these observations are local, but in the near future our participation is planned in development and implementation of regional ecological monitoring system in respect of the North Caspian Sea.

— Everything is clear with ecology, what is the situation with HR issues' Any problems with qualified and responsible personnel?

— For JSC OCC «KazMunayTeniz» as a company, which manages projects, personnel are the most valuable assets. On this basis we are in constant search of conscientious and single-minded people, who are ready to polish their skills. I think that a manager must be wise first of all: see a hidden potential in each employee and use his knowledge and abilities in favor of the company. Our career development policy will be built on professionalism and personal qualities of an employee. Now the company has 110 employees. They are qualified and responsible specialists. 60% of the total number of employees speak English. Many of them have work experience in western companies. Certainly, problems with a lack of qualified employees exist in general throughout the whole producing industry. The reason of this is that ten-fifteen years ago the price for oil was low and that is why this industry prospects were foggy. School graduates did not hasten to enter technical faculties. Such period lasted approximately 10 years. Within this period those, who worked in this industry, reached retirement age. As a result of this a small number of specialists remained. But this situation is fundamentally changing. An interest to oil and gas industry is growing, we see it, particularly, in our company. Today an average age of JSC OOC «KazMunayTeniz» employees is 38 years old. Besides, our company is actively forming a personnel reserve for offshore oil projects. Over the period from 2006-2011 we intend to send over 250 young engineers for work placement in foreign oil and gas companies. 5 production engineers are currently having overseas training (Milan, Italy, Eni Corporate University); 2 drilling engineers (Houston, USA, ConocoPhillips); 2 reservoir engineers (Houston, USA, ExxonMobil); 2 HSE and offshore logistics engineers (BUE office and industrial facilities); 2 engineering geologists (France Universities, master program of «Total» ).

— Yermek Nasibkaliyevich, Charity Fund «Munaishy» was given a name of your father. Surely, you know firsthand what business charity and social responsibility are. What social projects is «KazMunayTeniz» supporting?

— Business social responsibility is a voluntary deposit of business into solution of social, economic and ecological problems. This notion is not the last in our company. The company's social policy is focused, first of all, on creation of necessary and favorable labor and living conditions for oilmen, rest and medical treatment of employees and their families. We have successfully implemented program for purposeful support of socially vulnerable population in the regions where the company operates. In Mangistau and Atyrau oblasts «KazMunayTeniz» is rendering sponsor support for construction of schools, hospitals and kindergartens. For instance, in spring this year the company and its partners funded the complete overhaul of the main building of oblast children's house in Zhanaozen; the construction of the kindergarten in Kuryk village, Mangistau oblast commenced. Annually our company jointly with its partners is allocating USD 1.4 mln for social projects. We place high emphasis on Kazakhstan citizens' training. For this over USD 2 mln are annually spent. The company works with leading Kazakhstan universities, particularly, with Kazakh — British Technical University, Kazakh National Technical University named after K. Satpayev, Atyrau Polytechnic University, State University named after Sh.Yessenov in Aktau and Moscow Academy of Oil and Gas named after Gubkin and of late — foreign universities. «KazMunayTeniz» covers tuition of students, who showed the deepest knowledge, upon their university graduation the company will have an opportunity to invite them to work in offshore projects.

Our primary strategic goal is to be among leading companies in exploration and production of hydrocarbon resources. I think to reach this goal we have all opportunities…