BJ Services Awarded Contract by Karachaganak Petroleum Operating BV

21 October 2009

BJ Services Company has been awarded a contract by Karachaganak Petroleum Operating BV (KPO) to provide a range of process services in Kazakhstan. The services will be supplied as necessary to ensure the highest levels of health, safety and environmental standards on designated process facilities and terminals of the Karachaganak processing complex (KPC) near Aksai, Kazakhstan. BJ's process and pipeline services specialists will provide critical nitrogen purging, nitrogen/helium leak detection testing, and nitrogen equalisation services. These activities will be carried out on a call-off basis to support scheduled shutdown and maintenance activities, and in the event of an emergency.

Production on Karachaganak Field is achieved through three operational units: KPC, Unit 2 and Unit 3. Currently, KPC operates three production trains with export terminals at Bolshoi Chagan and Atyrau.

Dedicated Staff and Equipment in Aksai = Immediate, Efficient Response

Operations will be carried out by BJ Services personnel based in Aksai. In addition, BJ will employ and train members of local communities in lieu of expatriate personnel to support the project. Up to 20 permanent personnel will be required to support the operation, with additional crews to meet peak loading periods.

BJ Services is responsible for supplying all liquid nitrogen and associated consumables. With an estimated annual consumption of up to 1,800 tonnes of liquid nitrogen required to carry out the services, BJ has secured contracts for liquid nitrogen from local vendors to ensure regular delivery. By providing a storage capacity of more than 200 tonnes of liquid nitrogen, BJ will have ample supplies on-site for the regular service activities. In Aksai the company maintains a full range of leak detection and nitrogen pressurization equipment, a dedicated nitrogen pumping and vaporization spread and three additional spreads that can be mobilized, as required.

Long-term Commitment to Karachaganak Field Development Project

BJ Services has been involved with the Karachaganak field development project since the initial construction and commissioning of the Phase II facilities in 2002. The company provided nitrogen and helium leak detection testing, and lube oil-flushing services for the company's process facilities, Unit 2 and the KPC. Most recently, BJ completed a similar service contract on KPO facilities within the Karachaganak Field. This contract complements the existing well services contract where BJ personnel provides coiled tubing, nitrogen and stimulation services at the well sites that feed the KPO plant.

For the past 15 years BJ Services has been providing pipeline, process and well services in Kazakhstan. In 1994, the company provided nitrogen and helium leak detection, and drying services on a major project in Tengiz. Just three years later, the company opened a permanent base in 1997 in Almaty, and has continued to expand consistently throughout the region. In addition to its ongoing support of the Karachaganak project, the process and pipeline services group supplied commissioning services on the sour gas injection (SGI) project as part of the Parson Flour Daniels (PFD) project in Tengiz and the Atyrau refinery upgrade project in Atyrau, and pipeline precommissioning services on portions of the Kashagan field development experimental programme project in the North Caspian.