Chagala Group is a specialist service and facility provider predominantly targeting oil and gas companies and their service providers operating in the Caspian region of Kazakhstan, now firmly established as one of the biggest geographical exploration and production areas in the world. In particular, Chagala provides residential and business accommodation, associated catering, leisure, transport, warehousing and logistics support to all major companies involved in extracting oil and gas from Kazakhstan’s Caspian region.
The Republic of Kazakhstan is the ninth largest country in the world by land mass, enjoys a rich heritage, and is very well placed to participate in the excellent growth opportunities of Central Asia.
Kazakhstan is rich in natural resources. Some of the world’s largest oil fields are found in and around Kazakhstan, including the massive Kashagan discovery in the Kazakh sector of the Caspian Sea, ranking as the largest commercial discovery in the last 40 years. Like Kashagan, most of Kazakhstan’s major oil reserves and projects are found in the western part of the country which has been the focus of Chagala’s development history.
Since declaring independence in 1991, the Government of Kazakhstan has introduced reforms which have helped generate stable and significant growth. The global financial crisis did impact upon Kazakhstan but, by the end of 2009 the economy began to rebound, supported by strengthened commodity prices. In 2010 GDP grew 7% versus 1% in 2009 and the Kazakhstani tenge stabilised. Positive trends in the real economy have boosted the confidence of investors, increased profitability in key sectors, and strengthened domestic demand.
Oil and gas industry in Kazakhstan
Kazakhstan has the Caspian region’s largest recoverable crude oil reserves and on-shore and off-shore extraction sites currently under development mark it as a major near-term oil exporter. The Caspian region, and specifically Western Kazakhstan, is one of the industry’s top three global hydrocarbon extraction hot spots rivalling West Africa and the Middle East. Over the past seven years, oil production in Kazakhstan has more than doubled to 1.71 million barrels per day in 2010.
Major producers include Tengiz, Karachaganak, CNPC-Aktobemunaigas, Uzenmunaigas, Mangistaumunaigas, and Kumkol, which account for a total of 1 million barrels per day. Output solely from the country’s three major fields – the on-shore Karachaganak and Tengiz fields and the off-shore Kashagan field – is set to grow to 3-3.5 million barrels per day by 2020. President Nursultan Nazarbayev has announced ambitious plans to double annual oil production to more than 1.2 billion barrels, and join the top five global producers of oil.