National Data Bank of the Republic of Kazakhstan

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National Data Bank of the Republic of Kazakhstan
NDR6 Conference 20 September 2005 Vispi
Dumasia Petrodata Kazakhstan
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• Background

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Vision

• According to the 1st milestone of the State
  Programme of the development of the Kazakhstan
  Sector of the Caspian Sea, by the Governmental
  Decree No. 843, Clause 39 to provide for the
  establishment of the National Data Bank
• The NDB will manage the National Data Set and
  facilitate data transfer and reporting between
  key stakeholders, delivering operational value to
  all subscribers
• The implementation of the NDB is a strategic
  project for Kazakhstan, that will increase the
  effectiveness of the Kazakhstan EP industry, and
  is fully supported by the Government

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Kazakhstan NDB salient features

• Joint Govt-Industry initiative
• Industry funded
• Accession Fees
• Subscription Fees
• Operator Funds
• Govt supported
• Assign operator the right to operate NDB
  according to operating agreement

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Petrodata Kazakhstan

• Operator of the Kazakhstan NDB
• Joint Venture between
• Halliburton (Landmark)
• Kazakh Institute of Oil and Gas (KazMunaiGas
  subsidiary)
• Technical solution
• Petrobank TM technology
• PowerExplorer

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Timeline
KIOGE 2003 (October) Founding companies signing
ceremony
JSC Petrodata Kazakhstan registered 17th
November 2004
Phase 2 complete April 2006
Operating Agreement Signed 20th January 2005
NDB Formal Opening 26th September 2005
Collaboration Agreement between MEMR and
Halliburton 30th December 2002
MOU between KING and Halliburton 23th December
2003
ISO certified operations July 2006
Business Development
Legal and Commercial
Operational
Business Development
Legal and Commercial
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Clients of the NDB

• Agip KCO
• KazMunaiGaz
• KPO
• CNPC
• PetroKazakhstan

• Kazgermunai
• Petrom
• ChevronTexaco
• Turgai Petroleum
• FIOC

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• Establishment

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Government-Industry Initiative

• Govt is the sponsor of the NDB initiative
• Solicited support from industry
• Early joiners were approached
• Benefits offered
• discounted fees
• influence in regulatory changes
• Comittments from early joiners
• Allowed formulating the business model

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Funding model

• Operator established the infrastructure
• Fees used to partially reimburse Operator
• Establishment expenditure
• Facilities design and build-out
• Ongoing management of NDB operations
• Subscription fees
• For ongoing NDB services
• Fees are based on company size
• Hydrocarbon reserves
• Early joiner discounts

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Operating Agreement
Committee of Geology and Subsoil Use Ministry of
Energy And Mineral Resources
Petrodata Kazakhstan Operator of the NDB
Accession Fees
Subscription Fees
Member Companies
Accession Agreements
Subscription Agreements
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Establishment Phase 1

• Main operation centre Astana
• Opening 26th September 2005
• Control centre Kokshetau
• HQ of Geology Committee

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Establishment Phase 2

• Regional branch offices
• Aktobe historical data location
• Western branch of Geology Committee
• Almaty - historical data location
• Southern branch of Geology Committee

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Kokshetau
NDB
Regional and control centers connected with high
performance network
Client connections via Internet /VPN
and Dedicated channels
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• Challenges

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Legislative

• Data confidentiality
• Who is authorized to release data
• Multiple levels of approval
• Paperwork
• Data ownership
• State resources
• Acquired using state funds
• Non-state resources
• Acquired using non-state funds

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Procedural

• Existing data reporting framework
• Based on physical data
• Online data not conceptualized
• Govt. vs. non-govt. actors
• Role of non-govt. operator is new
• Understood by MEMR and oil companies
• Not well understood by local agencies and
  ancillary state bodies
• Requires repeated explanation and paperwork

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Communications

• Management of Agreements
• 1 Operating Agreement with Govt
• 3 separate branches
• HQ, West, South
• 10 Accession Agreements
• 10 Subscription Agreements
• Establishing a clear channel of communication

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Data consolidation

• Dispersed locations
• Incomplete knowledge on availability and
  existence of data
• Formats unknown
• Prioritize according to value
• Different stakeholders attribute different value
  to different data
• Managing expectations
• Logistics
• Large land mass
• Data repositories dispersed
• Developing network connectivity

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Commercial and Operational Impact
Procedural
Legislative
Long
Communiation
Time Duration
Data Consolidation
Short
Cost in
High
Low
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• The future

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Future role of NDB

• Standardized subsurface reporting
• Eliminate multiple reporting to state bodies of
  virtually the same information
• Expand standardized reporting to include
  environmental reporting
• Rapidly emerging as a critical issue
• Include other extractive industries