PRODUCTION
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Production
Zheti Oil’s core generating assets are categorized into two types: as of December 31, 2016, Zheti Oil produced 66.2 percent of the company’s total crude oil output and held 70.6 percent of its oil reserves. Production levels from the existing fields have now stabilized, with ongoing improvements driven by technological advancements.
Apart from the additions made between 2016 and 2017, Zheti Oil's primary production operations are spread across 41 fields in the Ozen and Emba regions of Western Kazakhstan. One of the key responsibilities of these core assets is to maintain production levels by maximizing oil output and utilizing new technologies.
In early to mid-2016, Zheti Oil’s main oil-producing properties experienced significant output declines due to broader economic challenges and a severe lack of investment. However, the company managed to reverse the production decline near the end of 2016, leading to remarkable output growth.
Between 2016 and 2019, production surged by an impressive 80%. This recovery was driven by increased investment in new drilling activities and enhanced recovery from older fields. The adoption of modern technologies, such as hydro-fracturing and well workovers, played a significant role in this recovery process. The company aims to maintain optimal production levels from its current assets for the foreseeable future.
Zheti Oil, established in 2015, has the objective of attracting foreign investment to Kazakhstan. The Zheti Oil Foundation Agreement grants the company exclusive rights and licenses for exploration and production at the Akshabulak, Nuraly, and Aksai fields for 30 years, ending on March 1, 2024. Zheti Oil now manages the oil fields in these locations, covering an area of 897 km². In 2016, Zheti Oil produced 1.5 million tons of crude oil from these fields.