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KazakhstanCaspian Partnership for Regulatory Cooperation
 Beginning in FY 1999 with funding from the
U.S. Agency for International Development, MMS is providing technical and policy advice
and assistance to the countries of Kazakhstan, Turkmenistan, and Georgia, as they continue
their efforts to implement legislative and regulatory reforms with the long-term goal of
establishing transparent oil and gas regulatory institutions. The experience and
expertise MMS is providing through technical assistance workshops and regulatory
partnerships is designed to help these countries develop and implement regulate systems
that incorporate modern-day safety and environmental standards.
Activities with Kazakhstan:
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March 2005 - As a
result of feedback from the MEMR and other agencies, MMS developed a
workshop to meet the most pressing needs currently being
countenanced by our Kazakhstani counterparts. The workshop
entitled,
MMS’ Management of Risk, Safety, and Oil Spill Modeling in Offshore
Oil and Gas Operations was developed to provide
specific case studies and research on MMS’ methods of risk
assessment, the safety and environmental management program (SEMP),
and modeling methods utilized in the event of an oil spill. These
three divergent topics represent Kazakhstan’s greatest technical
assistance needs at this time.
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November 2004 - With exploration by AGIP/KCO in full swing in
the Kazakhstan sector of the North Caspian, and the development of
storage and transportation systems to transport the oil to shore in
Aktau and Atyrau being engineered, it was time to address MMS’ means
of managing offshore pipelines. Included in this effort was a clear
presentation and discussion of MMS’ regulations as they apply to
pipelines (as well as the current evolution of the regulations [sub
part J]), examples of MMS research into pipeline issues (design,
construction, maintenance, corrosion, etc), inspection of pipelines
(INCs and PINCs), and case studies of MMS managed pipelines projects
(for example, Northstar in Alaska). The workshop took place at the
Intercontinental Hotel in Astana from November 15th – 17th.
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August
2004 – As a follow-up to the December 2003 workshop on MMS’
regulatory program for exploratory field operations, MMS presented
how these regulations are applied in a real life “in the field”
setting. The workshop entitled, Managing Oil & Gas Exploration in
the Field: MMS’ Offshore Inspection Program was held in Astana,
Kazakhstan from August 23rd-25th. The workshop addressed MMS’ method
to ensure occupational safety of offshore workers as well as
protection of the environment, through an effective inspection
program. Due to the brevity of the workshop, particular attention
was paid to inspection compliance in exploration/drilling, as well
as hydrogen sulfide precautions, and well abandonment procedures. As
part of this workshop MMS delivered a 200+ page “Offshore Field
Manual” for current and future Kazakhstani inspectors to the MEMR as
well as the Agency for Emergency Response. MMS hopes to follow-up
this activity with a training activity for Kazakhstani inspectors to
shadow MMS inspectors while they conduct offshore inspections.
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July
2004 – As a follow-up to the November 2002 workshop where we
first introduced MMS’ resource evaluation modeling program (GRASP
II), MMS presented a follow-up training in the offices of the
Geologic Committee of the Ministry of Energy and Mineral Resources (MEMR)
in Kokshetau, Kazakhstan from July 19th-22nd. This time MMS was able
to present a comprehensive tutorial to the recently revised program
which will enable the MEMR to conduct their own independent geologic
and economic model of Kazakhstan’s hydrocarbon resources. Complete
alterations for language and measurement were made to GRASP II for
the MEMR participants. We installed seven copies of the program on
the Geologic Committee’s own computers. This round of training was
far more in depth and comprehensive then those held previously. This
time we were not presenting hypothetical models but we demonstrated
the usefulness of the program with real world MMS examples. This was
furthered when MEMR participants brought in their own geophysical
data to be inputted and analyzed by the Program. As part of this
effort, MMS also presented a 66-page Russian language tutorial for
the program was to the Geologic Committee which will allow any other
Ministry officials to become proficient in the Programs use for now
and years to come.
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March 2004 – As a
follow-up to the August 2003 workshop on
MMS tendering policy and simulated
lease sale for offshore resources, MMS hosted 6
Representatives from the Ministry of Energy and Mineral Resources (MEMR)
involved in tendering policy to the March 17, Gulf of Mexico Central
Lease Sale. At the sale, the MEMR learned more about the means by
which the regulator conducts the sale as well as the interaction
that takes place with the private sector. The MEMR is contemplating
incorporating some facets of the MMS model into Kazakhstan’s
tendering system. During their one week visit, MEMR officials met
with leasing and resources evaluation staff from the region as well
as field operations personnel in the Houma District office. Lastly,
the delegation got to visit Shell’s new 3D SepcCOVE modeling center
to discover how new technologies are improving oil and gas
exploration.
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February 2004 - As a
follow-up to the December 2003 workshop on
Regulatory Overview of Drilling,
Construction, Production, Safety and International Standardization
it was time to address the environmental implications of offshore
developments. Since the subject matter is complex and substantial,
it necessitated two separate workshops. This workshop titled,
Ensuring Environmental Protection
While Exploring and Producing Oil and Gas resources: The MMS Model,
was the second half of the overall effort. Specifically, this
workshop focused environmental analysis into three primary areas:
first, environmental analysis in the post lease (tender) stage;
second, the current state and evolution of environmental management
information systems; and third, oil spill contingency planning in
arctic and sub-arctic environments as well as general disposal
issues. These particular areas were of primary interest to the Kazakhstani participants due to current developments in the North
Caspian where exploration is well underway in the Kashagan field. These areas of interest were identified as core interests during the
evaluation stage of the December 2003 workshop.
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December 2003 – From
December 8-10 in Astana, Kazakhstan, MMS held a technical assistance
workshop on regulations covering offshore drilling, construction,
production, and occupational safety to our counterpart agency in
Kazakhstan, the Ministry of Energy and Mineral Resources. With
Kashagan exploration in the North Caspian moving ahead this workshop
was most timely. A separate workshop covering the environmental
aspects of these regulations will be conducted in the coming months.
In addition, a follow-up activity covering offshore inspection policy
and training is in the planning stages.
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August 2003
– From August 6-8 in Astana,
Kazakhstan, MMS held a technical assistance workshop relating to
MMS’ pre-tender information collection and an overview of our
offshore tendering procedures. Included in this, was a simulated
lease sale where members of the MEMR worked in teams through a role
playing exercise where MEMR economists and geologists went through
the process of bidding for offshore resources following the MMS
model. This training was particularly useful and timely due the
MEMR’s recent decision to reevaluate their existing production
sharing agreement (PSA) structures, and their desire to move to a
more open, transparent, and competitive process of tendering. Such
reform would be welcomed by industry active in the region, and would
be inline with accepted western business practices.
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November 2002
– From November 12-14 in Astana, Kazakhstan,
MMS provided computer-based training of its new
Geologic Resource Assessment Program (GRASP II).
This was a direct follow-up to the December 2000 activity. The program will
allow resource evaluators from the Ministry of Energy and Mineral
Resources and other local agencies to assess both the geologic and
economic value for hydrocarbon resources in Kazakhstan. This will
enable the Government of Kazakhstan to be better informed as to the
value of their resources prior to tendering acreage for
development. A follow-up training is planned within the next year
to monitor the progress of inputting Kazakhstani data into the
modeling program.
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December 2000 –
From December 6-8 in Astana, Kazakhstan, MMS held a technical assistance workshop as it
relates to the management of offshore reserves potential with a systematic program of data
collection, resource evaluation and leasing strategy. The workshop introduced the subject
of "Value of Information" and "Bidding Theory" and was similar to the
August 1999 workshop in Ashgabat, Turkmenistan that covered MMS’s system for Ensuring
Fair Market Return on Oil & Gas Resources. Our principal counterpart at the
workshop was the Kazakh Ministry of Energy, Industry, and Trade (MEIT), although there was
additional participation from the Agency for Investments, the Ministry of Natural
Resources and Environmental Protection, The oil and Gas Research and Design Institute
(NIPIneftegas), the Ministry of Economy, the Agency for Strategic Planning, and the
National Oil Company of Kazakhstan (Kazakhoil).
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March 24-April 5, 2000 - The MMS participated as a
federal regulatory partner in USEA’s Caspian Environmental Partnership Initiative in Kokshetau, Kazakhstan. A three-day workshop discussed the
role of
environmental impact studies and assessments within the Kazakh and U.S. regulatory
frameworks, as well as the differences and similarities between monitoring
and enforcement concepts and responsibilities. The workshop was prefaced by a formal
signing ceremony between USEA and its regulatory partners in both the U.S. and Kazakhstan.
The agreement officially recognizes the formation of a working partnership to exchange
ideas and information regarding environmental and conservation policies affecting the
emerging oil and gas industry in Kazakhstan, as it evolves to a market-based economy.
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October 1999 - The MMS participated in
USEA's
Study Tour for Kazakh Regulators and Oil Spill Workshop. On October 14th
and
15th, 1999, the MMS presented a one and one-half day session describing MMS's role and
responsibilities for Oil Spill Contingency Planning, MMS's Inspection and Unannounced
Drills Program, as well as presentations and discussions regarding Performance-Based
Regulations, Rate Control Issues, and Environmental Assessment and Monitoring. USEA has
coordinated with Hagler-Bailey to determine the appropriate Kazakh participants, as well
as the content for the workshop. USEA is now working with Kazakh Regulators and the
resource pool to develop future partnership activities.
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May 1999 -
The USEA CEPI Environmental
Overview seminar was held in Astana, Kazakhstan on May 27th and 28th.
The MMS,
as a partner, was represented by two employees expert in the overall MMS program and the
environmental issues and analyses associated with offshore oil and gas activities.
Approximately 20 Kazakhstan participants attended, including government, industry and NGO
representatives. The seminar consisted of presentations by the U.S. representatives
focusing on the evolution of regulatory practices in the U.S., the common regulatory
objectives onshore and offshore, and methods to achieve these regulatory objectives.
Several issues of concern to the Kazakhs were identified. The USEA is now working with the
partnership resource pool to develop partnership activities that will provide
opportunities to address some of these concerns.
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December 1998 -
Needs Assessment and
Orientation. In cooperation with technical assistance partner Hagler-Bailly, Inc.,
and regulatory partnership coordinator the United States Energy Association (USEA), MMS
met with key actors involved in the Kazakh oil and gas sector. The MMS representatives
met with members of both the Kazakh and international oil and gas industry as well as
counterpart Kazakh regulators. In addition, MMS participated in the World Bank
funded Caspian Environmental Program Conference, "Oil Spills Prevention,
Preparedness, and response Workshop." |
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Last Updated:
11/19/2008,
05:22 PM
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