WWW.NCOC.KZ

Kashagan:a cornerstone of

Kazakhstan’s sustainable future

Pierre OFFANTChairman and Managing Director, NCOC B.V.

Looking Back

D Island in 2004

A triumphant construction

D Island – nowadays

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THE NCSPSA CONTRACT AREA

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NEW OPERATING MODEL

NCOC is the Operator under the NCSPSA since January 22, 2009

SOME MILESTONES

Phase 1 of the Kashagan field development is progressing towards completion and preparations for production are underway.

It is expected that pre-startup activities will continue over the coming months to ensure a safe start of the production followed by a progressive ramp up of production in accordance with the Consortium’s commitments towards the RoK in 2013.

Overall, the Consortium is delivering according to the October 2008 commitment, with safety remaining our top priority.

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Mega-sized project: D Island & Bolashak in perspective

D ISLAND

167 Statues of Liberty =

105,000 tonnes of concrete have been produced by local companies for use offshore

265 times Golden Gate bridge span = total length of oil and gas pipelines laid

BOLASHAK

700 football pitches = 353,000

square metres of insulation

8 times Eiffel Tower = 60,000 tonnes of

structural steel used

24 times Bayterek = main piperack

(2.4km)

London to Paris distance = 600 km total length of piles

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DRILLING ACHIEVEMENTS

More than 200,000 meters drilled since Consortium’s first well, Kashagan East-1 (1999). That’s equivalent to 1 905 Bayterek towers, 617 Eiffel Towers, 451 Empire State Buildings, 242 Burj Khalifas

5 October 2011 9

ARTIFICIAL ISLANDS

Mechanical levelers smooth the surface

Concrete foundation slabs, ready to install facilities

Service lines and cables installed and covered

Protective impermeable geotextile membrane laid

Piles are driven around perimeter

Barges transport rock and sand offshore – placed on sea bed

April 22, 2023 10

TECHNOLOGY LAYING PIPES

Trenching and back filling barge 2 months later

After trenching

Trenching, laying and filling at the same time

April 22, 2023 11

TECHNOLOGY ICE BREAKING VESSELS

Ice-breaking emergency evacuation vessels (IBEEV’s)

Main features

•Specifically to face to H2S emergency

•Each capable of carrying 340 people

•Operate through more than 1m of ice

•Self-contained air supply during 6 hours

•Use its weight to crush way through ice

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NATIONALIZATION

In Q2 2012 Consortium employed 22000

people in Kazakhstan inclusive of

subcontractors. 

Around 80% of them are RoK citizens which is

an outstanding ratio for this type of Project.

In Q2 2012 Consortium employed 22000

people in Kazakhstan inclusive of

subcontractors. 

Around 80% of them are RoK citizens which is

an outstanding ratio for this type of Project.

№ ProjectActual Expenses in

2011(USD)

Project outcomes

1Special Project (Education at Training Center, Construction of Process Training Plant, On the Job Training)

11 813 000More than 1000

personnel trained since 2003

2 National Staff training (DHK + KMG-K) 5 440 8536088 training events organized in 2011

3

Sponsorship program in line with PSA Article 27.2 (Scholarship Program for students, marine program, purchasing new equipment/technology)

256 0001447 students

sponsored since 2000

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TRAINING AND DEVELOPMENT

Last saved: 22 August 2012 10:22, Author Department: Contracting & Procurement (KZ)

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LOCAL CONTENT

>$8 billion = paid for local goods,

works and services between2006 – 2Q 2012.

>$1 billion = payments for local

goods, works and services in 2011 only

>500 people = from 34 local

companies trained to the most demanded craft skills

56 local companies = successfully

certified under such international standards as ISO 9001, ISO 14001, ISO 22000 and OHSAS 18001

109 local companies =

successfully passed qualification audits according to the Consortium requirements

2600 KZ companies =

Kazakhstan companies registered in the Vendor Database THE CONSORTIUM – ONE OF THE LARGEST CONTRIBUTORS TO LOCAL CONTENT IN

KAZAKHSTAN 

THE CONSORTIUM – ONE OF THE LARGEST CONTRIBUTORS TO LOCAL CONTENT IN

KAZAKHSTAN 

5 October 2011 15

ENVIRONMENTAL PROTECTION PLAN

ENVIRONMENTAL PROTECTION PLAN APPROVEDANNUALLY BY MINISTRY OF ENVIRONMENTALPROTECTION

MORE THAN 15 BILLION TENGE SPENT ON OUR ENVIRONMENTALACTIVITIES IN 2011

EPP ACTIVITIES DELIVERED IN COOPERATIONWITH AGENTS EXAMPLES OF WORK INCLUDED:

•Air monitoring stations, •Sewage treatment facilities•Oil spill response•Tree planting•Environmental surveys•Seal & wildlife monitoring•Biodiversity studies

36 SEPARATE OFFSHORE MONITORING SURVEYS CONDUCTED BETWEEN 1993 AND 2010

5 October 2011 16

ONSHORE AND OFFSHORE ENVIRONMENTAL SURVEYS (1993-2010)

Offshore water, sediments and marine life sampling

30 ONSHORE MONITORING SURVEYS CONDUCTED BETWEEN 2001 AND 2010

5 October 2011 17

PROTECTING CASPIAN SEAL

Caspian seal tagging, Agip KCO Project (2005 -

ongoing)

CASPIAN INTERNATIONAL

SEAL SURVEY

ACTIONS TAKEN TO

PROTECT SEALS

ICEBREAKER IMPACT

STUDIES

WINTER AERIAL

POPULATION SURVEYS

MITIGATION MEASURES

YEARLY SCIENTIFIC

PROGRAMMES

INTENDED TO INCREASE

UNDERSTANDING OF

THE CASPIAN SEAL

SOCIAL COMMITMENTS

SOCIAL AND OTHER INFRASTRUCTURE PROJECTS (SIP)

•Implemented out of a certain percentage of the Development Expenditure.

•Projects are selected in close collaboration with Atyrau and Mangistau Oblast Akimats and the Authority

•In the areas of infrastructure, including construction of roads, electrification, gas and water supply, and social construction including of schools, kindergartens, hospitals, sport facilities.

•Between 1998 and the end of 2011

o142 projects were done for total of US$268 millionoUS$ 112.9 million spent in Atyrau Oblast oUS$155.1 million spent in Mangistau Oblast

SOCIAL COMMITMENTS

PARYZ AWARD IN 2011 - BEST SOCIAL PROJECT

On 9 December 2011 the Corporate Social Responsibility Award Paryz was held and NCOC received a Silver Award for Best Social Project.

This is a high appreciation of the NCSPSA social investments in 2011, for the SIP and S&D programs.

The ceremony was Chaired by President N. Nazarbayev and the award was handed to NCOC by the Minister of Labor and Social Protection Mrs. G. Abdykalikova and the Minister of Economic Development Mr. K. Kelimbetov.

CONCLUSIONS

The North Caspian Project – one of the biggest , most complex and challenging industrial developments in the world

Kashagan field is Kazakhstan’s answer to global energy issues and demand that can make the country one of the top petroleum exporters worldwide.

The challenges can not be overcome without technology

So we have to be creative and use innovative technologies because many conventional methods just don’t work under such conditions

The Consortium is one of the largest contributors to local content in Kazakhstan 

We fulfill our social responsibilities to bring long-term benefits for the citizens of Kazakhstan

Making safety our main priority, we are steadily progressing from vision to reality

THANK YOU FOR ATTENTION