High -quality products
The crude oil extracted from the Chinarevskoye field has an average API gravity of 42-43 degrees and sulphur content of approximately 0.4%. This is superior in quality to other primary benchmark crude oils produced in Kazakhstan.
Stabilised liquid condensate
The condensate extracted from the Chinarevskoye field has an average API gravity of 56 degrees and sulphur content below 0.2% – also of superior quality for the region.
The LPG produced by Nostrum is of field grade quality, does not contain any olefins and has a low sulphur content.
Sales and pricing policy
The production, marketing and transportation of our liquid products are closely monitored and controlled by Nostrum, and make up the largest share of our revenues. The commercial production of dry gas adds significant benefits through the easy off-take of dry gas volumes using straightforward pipeline logistics, the generation of our own power supply and the partially sponsored supply of dry gas to neighbouring communities.
Shipped through our own 120-kilometre pipeline from the Chinarevskoye field to our own rail terminal in Uralsk, from where it is shipped in railcars to off-takers at various destinations. The benchmark price for our crude oil is Brent. In accordance with the PSA, we export 85% of our crude oil production.
Stabilised liquid condensate
Shipped through the same 120km pipeline to the rail terminal in Uralsk, from where it is shipped in railcars to off-takers at various destinations. The benchmark price for our stabilised liquid condensate is also Brent and 100% of production is exported.
Shipped in special LPG trucks from the Chinarevskoye field to rail terminals in Uralsk. From here it is shipped in railcars to end consumers and traders. The benchmark price for our LPG is the International Mediterranean LPG price Sonatrach for Black Sea deliveries, or the Brest quotation for Eastern European deliveries. More than 85% of our LPG is exported.
Liquids are transported and sold to countries such as Finland, the Ukraine and Turkey, or sold on an FOB Black Sea basis.
Shipped through our own 17-kilometre pipeline from the Chinarevskoye field to the connection point with the Intergas Central Asia gas pipeline (Orenburg-Novopskov), from where it is distributed by the off-taker. Prices for gas products are negotiated annually with the off-takers in a long-term framework agreement. All the gas is sold at this connection point.
We are able to achieve a relatively high netback for our export production due to transportation of our products through our own infrastructure and the resulting quality guarantees.
Our sales and marketing department employs experienced traders. The team is continuously working towards negotiating new off-take contracts and identifying efficient transportation options for these new products.