KazMunayGas subsidiaries say frequent power outages cause billions in financial losses
ASTANA. July 4 (Interfax) - Oil production companies that are part of Kazakhstan's KazMunayGas (KMG) say frequent power cuts in the region are casing it billions in financial losses, KMG said on Tuesday.
KMG CEO Magzum Mirzagaliyev visited the Atyrau Oil Refinery to oversee the progress of repairs after an emergency shutdown caused by a power outage at the Mangistau Atomic Energy Complex power generating unit. Mirzagaliyev held a conference call with the heads of subsidiaries that completely or partially suspended their operations.
KazMunayGas subsidiaries pointed out that constant disruptions in the supply of electricity undermine the efficiency of oil production and obstruct the efforts to meet the production targets.
"This incident [a power outage at Mangistau Atomic Energy Complex on July 3] caused such a public outcry because the Atyrau refinery had to flare hydrocarbon gas while being located within the urban boundaries. Our oil fields had 11 such shutdowns in the past six months. "The total number of shut down wells reached 13,000, while the financial costs are estimated at 5 billion tenge," Ozenmunaigas General Director Nurdaulet Kilybai said.
KMG said that in 2023, electricity at oil fields was cut off 153 times, which led to an oil production shortfall of 75,000 tonnes.
"We are seeing an alarming increase in power cuts. In 2017-2019 our company failed to produce 3,700 tonnes of oil, in the period from 2021 to 2023 the figure increased to 45,000 tonnes. Yesterday, we saw a production loss of 2,500 tonnes. Meeting our production targets is at high risk," Karazhanbasmunai General Director Nurseit Soyunov said.
General Director of Mangistaumunaigas JSC Murat Mustafayev added that the company's losses due to disruptions in the electricity supply for the six months of 2023 reached 1.267 billion tenge, which outstrips the losses in the previous two years and exposes a severely deteriorated condition of the power infrastructure systems.