PetroKazakhstan pays special attention to modernization of its production facilities. Since purchasing the Shymkent Oil Refinery in 2000 the company has invested significant funds in its modernization. By renewing equipment and making technical improvements the Company has managed to achieve the reduction of costs and increase of production performance. PetroKazakhstan Oil Products has completed a series of projects aimed at increasing the quality of oil products and improving product ranges. One of these projects was the reconstruction of a vacuum fuel oil distillation plant (VFDP), which helps to increase the production of high value light oil products. By commissioning the VFDP, refinery began producing the new product - vacuum gas oil. Prior to that were implemented a number of projects to enhance the safety of the main refining equipment, which allowed to decrease the shutdowns of refinery.

Refinery takes annual measures to increase fire and ecological safety. The company reconstructed electric lighting on the oil loading and unloading trestle. Fire-fighting facilities were installed on metal constructions supporting the loading trestles. Observation wells and the condition of underground water were monitored around the refinery and at the Akdalin evaporation pond. A project has also been launched to stop underground water pollution.

PetroKazakhstan Oil Products LLP, following the industrial-innovational development strategy of Republic of Kazakhstan that determines the development of local refineries is implementing a large-scale project "Shymkent Refinery Modernization and Upgrade”. The Feasibility Study, approved by the RoK State Expertise Department in the beginning of 2010 was developed within its framework. However a number of factors recently evolved on RoK and neighboring states geopolitical area, which have significant impact on prospective development of local markets of oil and oil products. These are: the construction of the transport corridor Western Europe – China, establishment of the integrated Customs Union, Order of the RoK Oil and Gas Ministry on orientation to EURO-5 environmental standard during upgrade of Refinery. All of that significantly impacts the Project’s implementation and its content. In this respect shareholders and management of PKOP took the timely decision on adaptation and consideration of the alternative upgrade method, linking the forecasted oil and gas industry disciplines to the new technologies possibilities. Thus, the shareholders can take an optimal decision towards the upgrade of Refinery and choose the best technologic scheme scenario for the plant.

The goals of the Project are as follows:

• Increase the capacity of the refinery up to 6 million tons;
• Increase the yield of light oil products from 61% to 89%
• Improve the quality of products to meet EURO-3 standard requirements;
• Expand the product range by producing such petrochemicals as polypropylene, benzene and elemental sulfur;
• Reduce the output of effluent discharge;