With the re-start of GTU 3, complementing the previous gas processing trains, we have built a world-class infrastructure processing hub that is currently under-utilised but with the potential to support the production and sale of billions of cubic meters of gas in north- western Kazakhstan for years to come.

The oil treatment facility (OTF) has a maximum throughput capacity of 400,000 tons per annum. The OTF associated infrastructure includes a gas-lift facility that was commissioned in 2015 and a liquid hydrocarbons pumping station transferring crude oil and stabilised condensate via the liquids pipeline to the rail loading terminal.

In 2023, 1.039 mmboe of oil and 0.692 mmboe of condensate was transferred through the pipeline. After the installation and commissioning of an additional gas lift compressor in 2023, a total of up to 950,000 cubic meters of recycled lift-gas per day has been compressed and made available to enhance oil production, with modifications to the existing system.

The gas treatment facility (GTF) is designed to treat raw gas from gas condensate reservoirs (and the associated gas coming from the OTF) into condensate, LPG and dry gas with a by-product of granulated sulphur. The gas treatment facility includes three gas treatment units (GTU1,2 & 3) which have the capacity to treat 4.2 billion cubic meters of raw gas per annum.

In mid-2023, GTU 3 was started again after the turbo expander re-installation, modifications on the hot oil system and installation of a gas re-circulation system ensuring sufficient feedstock. The 3rd train was used to process the raw gas for the remainder of 2023 and demonstrated functionality and efficiency with higher- than-expected LPG yields.

A low-pressure system has been installed to facilitate the reduction of the GTF inlet pressure from 42 to 8 bar, so as to prolong the run-life of wells, primarily gas- condensate. Installed capacity of gas compression is 48,000 standard cubic meters per hour in total with 19 wells flowing through the low-pressure system as of the end of 2023.

In 2023 we upgraded the gas lift system by adding a 3rd gas lift compressor, doubling the capacity from 27,000 to 54,000 standard cubic meters per hour. Currently, the compressors are running at 40,000 standard cubic meters per hour, limited by total gas lift system constraints which require further de-bottlenecking.

The gas-fired power generation plant is linked to the GTF and has an electrical power output capacity of 26 MW. The generated capacity of the plant is sufficient to meet the existing and the maximum future need. Backup generation capacity of up to 15 megawatts is available at the processing facilities.

Nostrum has over 35,000 cubic meters of storage capacity for liquids at its field site and rail loading terminal.

Nostrum has its own 17km dry gas pipeline which is linked to the Orenburg-Novopskov gas pipeline. The pipeline has sufficient capacity to export the entire GTF maximum production capacity dry gas volumes.

Nostrum has its own 120 km liquids pipeline that runs from the field to the Company’s rail loading terminal in Beles (near Uralsk). The pipeline has a maximum daily throughput capacity of 3,500 t/d.

Nostrum has its own automated rail loading terminal at Beles, located near the city of Uralsk, that receives all produced crude oil and condensate and has a daily capacity of 5,000 t/d.

Nostrum has constructed a secondary crude oil pipeline to enable export sales from its rail loading terminal via the Atyrau-Samara export pipeline operated by KazTransOil (KTO). The connection to the KTO pipeline has enhanced the Company’s ability to maximise crude oil netbacks through the commodity cycle.

In 2023, modifications commenced on the Sulphur Recovery Unit to handle higher H2S levels, necessary for processing third-party gas like UOG. This enables H2S processing using either the direct oxidation or Claus process. These modifications are expected to be completed in 1Q 2024.

During 2023 facility inspection, serious cracks at various heights of the 62-meter incinerator chimney were identified, necessitating urgent repair. After evaluating several repair options, the only HSE acceptable method was building scaffolding. Expert consultation supported this methodology and design was approved. While installing the scaffolding at 33 meters, two damaged scaffolding poles led to a suspension of work. Support to continue the work was obtained with confirmation that the structure remains within the safe operating range that was assessed by an independent expert inspector in the first quarter of 2024.