PKI Group’s annual oil production for the last five years made up about 6.4 million tons. In 2009 PKKR is planning to increase the production volume up to 3,103,005 million tons.

 

PetroKazakhstan’s production strategy in 2009 is based on increasing the production through maximization of financial return from exports that may from time to time result in operation of fields at lower than their rated capacities. In view of various external factors that influenced the level of production last year, PetroKazakhstan found it reasonable to set limits of the planned production level rather than to specify it in figures. According to PKKR the production level in 2009 will be about 65,851.7 bopd.

 

All the while PKKR has low oil production costs. For example, in 2008 the cost of oil production made up USD 3.54 per barrel while in 2007 it was USD 2.89 per barrel.

 

As part of production enhancement activities in 2008 the Company continued hydraulic fracturing operations for enhanced oil recovery. In 2008 the hydraulic fracturing operations were carried out at 32 sites. In 2008 the Company drilled 19 exploratory wells of which 14 were successful.

 

In 2008, the total production volume of PetroKazakhstan Inc. (including PKKR and a 50% interest in JV Kazgermunai and JV Turgai Petroleum) made up 6.392 million tons of oil (49.515 million barrels).

 

Nowadays, by its oil production volume PKI Group is ranked fifth among oil producing companies in Kazakhstan.