Presented By:

Dave Mannon

Opportunities For Oil Service Sector

Companies in Kazakhstan

Opportunities For Oil Service Sector

Companies in Kazakhstan

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Kazakhstan Energy FactsKazakhstan Energy Facts• Kazakhstan is the second largest Kazakhstan is the second largest oil producer in Central Asiaoil producer in Central Asia

• Over 160 oil and gas depositsOver 160 oil and gas deposits have been discoveredhave been discovered

• Reserves in Kazakhstan are said to be equal Reserves in Kazakhstan are said to be equal to the to the whole of Western Europewhole of Western Europe

• Tengiz and Kashagan Fields rank as one of Tengiz and Kashagan Fields rank as one of the the largest deposits in the worldlargest deposits in the world

Source: Official Kazakhstan HomepageSource: Official Kazakhstan Homepage

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Why work in Kazakhstan?Why work in Kazakhstan?

• Parker has over 14 years of continuous work• Never drilled a dry hole• Good joint venture partners in country• Challenging well site operations

– Complex geology– High pressure hydrocarbon formations– Remote operations– Environmental concerns– Minimal infrastructure

Demand for energy service companies willing to work in remote regions and provide premium

services

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Successful Joint Venture PhilosophySuccessful Joint Venture Philosophy

• Joint venture should combine and enhance unique capabilities of each party

• Both parties must add value to the joint venture

• Both parties must receive fair value for their contributions to the joint venture

• Local content should drive cost out of the business model

• Must have a measurable benefit to our client

• There should be a strategic vision for the future of the joint venture

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Remote OperationsRemote Operations

• Producing fields are in remote locations• Companies need experience in setting

up operations without infrastructure support

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Remote LocationsRemote Locations

• Logistics are at a premium• Energy service companies need good

supply chain management systems to be successful

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Local WorkforceLocal Workforce

Able workforce willing to work hard to produce results

Today over 90% of work force is trained local personnel

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Large Oil FieldsLarge Oil Fields

• Tengiz field• Caspian Sea

– Kashagan

• Karachaganak

Kazakhstan is expected to triple production in next 10 years!

KazakhstanKazakhstan

Cas

pia

n S

eaC

asp

ian

Sea

RussiaRussia

IranIran

Turkmenistan

Turkmenistan

Uzbekistan

Uzbekistan

Azer.Azer.

ChinaChina

AralAral SeaSea

TengizTengiz

KarachaganakKarachaganak

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Safe Working ConditionsSafe Working Conditions

TRIR Historical Comparison: Kazakhstan vs. IADC

2.23 2.21 2.272.34

3.66

1.88

3.28

1.37 1.230.79

0

0.5

1

1.5

2

2.5

3

3.5

4

2001 2002 2003 2004 2005

Incident Rate

IADC Parker Drilling CIS Region

10

Great Place to WorkGreat Place to Work

• E & P companies are expanding operations• Reserves are increasing

The Future is Bright!