USD/KZT 443.16 
EUR/KZT 480.39 
 KAZAKHSTAN International Business Magazine №2, 2000
 Forging Partnerships for the new Millenium - the First Privately-owned Intergrated Oil Company in Kazakhstan and the Leader in the Refined Products Market
Forging Partnerships for the new Millenium - the First Privately-owned Intergrated Oil Company in Kazakhstan and the Leader in the Refined Products Market
An investor in Kazakhstan since 1991, Hurricane Hydrocarbons has become the largest privately integrated oil company in the country. In applying latest available western technology, Hurricane has set new records by increasing daily production of crude oil to 90,000 barrels.
In March 2000, Hurricane acquired a major shareholding in the Shymkent refinery -Shymkentnefteorgsyntez, thereby securing an outlet for its crude oil production. As a result, Hurricane is uniquely positioned with facilities for increasing upstream production and downstream refining, with a well-established marketing, transportation and sales distribution network. New foreign markets, including Europe and China are part of Hurricane’s plans for expansion.
The Shymkent refinery is a clean, modern and efficient facility, located in the south-east of Kazakhstan, about 600 kilometers from the company’s upstream operations. It is strategically located to facilitate the export of crude and refined products by rail to the Black Sea and China, as well as provide product to the most densely populated part of Kazakhstan, in particular to the industrial sector and the transportation hub of Almaty. The current production capacity of the refinery is 6 million tonnes a year.
The company’s current proven and probable reserves are assessed at 458 million barrels. As opportunities arise to develop another three fields - Kyzylkia, Aryskum and Maibulak, Hurricane has the potential to add significant volumes of production during the year 2001. Indeed, Hurricane has already commenced an Early Production Scheme for the Kyzylkia Field. Hurricane plans to invest US$143 million between year 2001 and 2003 to develop the infrastructure of these three oil fields.
As result of generating a strong cash-flow and impressive earnings and having a strong management team in place, the company is well positioned to consolidate its existing acquisitions and find new areas for potential growth.
Hurricane believes that Kazakhstan is an emerging force in the world oil market and we are extremely pleased to be part of this development.
As a long-term investor in Kazakhstan, Hurricane has made a substantial commitment to a range of social and educational programmes to local communities in the area of its operations. Hurricane’s major focus has been, and continues to be, the provision of support to children, veterans of war and disabled people of all ages. The company has participated, among others, in the following activities:
• Renovation of a full-size sports complex in Kyzylorda;
• Major sponsorship of the local soccer and basketball teams;
• Support and encouragement of local artistic talents;
• Donations of books to the local library;
• The completion of Kyzylorda’s regional hospital;
• The refurbishment of a youth summer camp and sponsorship of more than 2,400 children to attend the camp; 
• Provision of charitable aid to societies of invalids and blind people;
• Patronage to local orphanages;
• Sponsorship of at least a dozen cultural events for children; and,
• Donations to socially vulnerable groups, children’s health and development funds, both in Kyzylorda and Almaty.
As a leading employer in the oil industry, Hurricane has contributed to the development of first class energy professionals in Kazakhstan. During the first 6 months of this year 1,540 employees from the company’s 26 subdivisions have been trained at 24 different professional upgrading courses. Some of the courses were held in Almaty, Moscow, St.Petersburg and Samara.
The company’s oilfields are located in the South Turgay Basin covering 80,000 square kilometres in the Kyzylorda and Karaganda oblasts of Kazakhstan. 
• Hurricane has a 100% interest in a 455,672 acre exploration license surrounding the Kumkol fields. Kumkol South and Kumkol North represent Hurricane’s main upstream producing assets. The company has 100% ownership of the Kumkol South field while the joint venture company, Turgay Petroleum, owned 50/50 by Hurricane and Lukoil, operates Kumkol North.
Hurricane also owns 100% of South Kumkol, a separate structure lying to the south and east of the main Kumkol field. There are ten producing wells.
• Hurricane has started an early production project in the QAM oilfields which contain a total of 90.5 million barrels in proven and probable reserves. Hurricane has a 100% before payout interest and a 75% interest after payout in this project.
• Hurricane holds a 50% interest in the Kazgermunai Joint Enterprise, which in turn has a 100% interest in three fields, also located in the South Turgay Basin.
Production from the Kumkol fields is transported by two parallel lines of 20” and 28” diameter which give a combined capacity of about 350,000 bopd. These lines connect to the major north-south “Central Pipeline”, designed to deliver West Siberian crude to Central Asian refineries, in particular Pavlodar and Shimkent in Kazakhstan and Chardzhou in Turkmenistan. This pipeline is owned and operated by KazTransOil.
The crude oil produced from Hurricane’s eight fields in total, is of high quality, it is considered to be light and sweet with some paraffin content, with an API gravity of about 42.
In addition to its oilfield assets, Hurricane holds a 90% interest in the rail trans-shipment oil terminal at Druzhba on the Kazakhstan China border. The first construction phase of the terminal is complete. It is expected to be commissioned during the first half of year 2001 with an initial throughput capacity of 1 million tonnes per year.
Hurricane is constantly carrying out research into its production operations in order to find further means of reducing operating costs and increasing production efficiency.
In the field, steps have been taken to maximize the utilization of all resources. Standby pumps and vessels have been commissioned, pumping and processing systems moved from unproductive wells to productive wells and repairs made to critical equipment.
Approximately US$30 million will be spent in the year 2000 to upgrade existing Hurricane facilities, continuation of a 3D Seismic acquisition program as well as some exploration and development drilling.
In addition, Hurricane is preparing for a new and technically difficult phase to optimize the implementation of the water flood, the well pumping systems and the fluid and gas treating systems.   
Currently Hurricane is finalizing the feasibility study and preliminary engineering studies for the implementation of a gas utilization project. Early indications are that a gas utilization project will require a capital investment program of approximately USD 50 million. The project will comply with regulations of the Republic of Kazakhstan with regard to preservation of underground resources and environment protection while operating the oil and gas fields in the Kumkol area.

Table of contents
Kazakhstan - Resource Management  Boris Zilbermints, Ian Dunderdale 
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· 2015 №1  №2  №3  №4  №5  №6
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· 2013 №1  №2  №3  №4  №5  №6
· 2012 №1  №2  №3  №4  №5  №6
· 2011 №1  №2  №3  №4  №5  №6
· 2010 №1  №2  №3  №4  №5/6
· 2009 №1  №2  №3  №4  №5  №6
· 2008 №1  №2  №3  №4  №5/6
· 2007 №1  №2  №3  №4
· 2006 №1  №2  №3  №4
· 2005 №1  №2  №3  №4
· 2004 №1  №2  №3  №4
· 2003 №1  №2  №3  №4
· 2002 №1  №2  №3  №4
· 2001 №1/2  №3/4  №5/6
· 2000 №1  №2  №3

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