City University of International Partnership / State license АБ 0137478
International accreditation ACBSP (USA) / Institutional and specialized accreditation IQAA (Kazakhstan)

Bylina Yelena


Bylina YelenaKazakh-American Free University Ust-Kamenogorsk, Kazakhstan

Kazakhstan has a lot of oil—much more than most other countries of the world. It is estimated that Kazakhstan has as much as 46 billion barrels (proved, probable and possible) of recoverable oil, whereas the United States has about 23 billion (proved). In addition, these oil resources are only in the earliest stages of exploration and development, so the outlook is very good for oil to bring great prosperity to Kazakhstan.  Difficulties are present however and much has been written on this subject and can be accessed easily at many scientific publications. The world recognizes that Kazakhstan has a huge potential for petroleum production, and Kazakhstan will benefit in the future.  That bright future may come sooner if some obstacles to western investment are met.  Among the problems are:

·  Transportation of oil and gas to world markets;

·  The presence of oil impurities (e.g., poisonous and corrosive hydrogen sulfide and carbon dioxide gases) which significantly increase the cost to develop the oil reserves;

·  Large capital requirements to explore, produce and transport;

·  Business practices and ethics;

·  Existing pollution and other environmental concerns.

For solving these problems we should take a look on business model of foreign successful companies engaged in oil and gas industry. Further to this, Kazakhstan must rely upon foreign investments to help grow its petroleum industry. In addition to investments, our republic needs people who could combine in their profession foreign language, knowledge of profession and international business ethics because these requirements are very important for any companies in our republic in time of integration process.

This summer I got unique opportunity to participate in Business Immersion Program in Austin, Texas, USA where during three weeks I observed operations of “Brigham Exploration” company. “Brigham Exploration” is an independent exploration, development and production company that utilizes 3−D seismic imaging and other advanced technologies to systematically explore for and develop onshore oil and gas reserves in the U.S. for over 15 years. The company focuses its exploration and development activities in areas where it believes technology and the knowledge of its technical staff can be used effectively to maximize return on invested capital by reducing drilling risk and enhancing the ability to grow reserves and production volumes. 

The business strategy of company is to create value for their stockholders by growing reserves, production volumes and cash flow through exploration and development drilling in areas where they believe their operations will likely result in a high return on the invested capital. This is very important factor in business where every time you should take a risk. Key elements of this business strategy include:

·  Focus on Core Provinces and Trends.

·  Internally Generate Inventory of High Quality Exploratory Prospect.

·  Evaluate and Selectively Pursue New Potential Plays.

·  Capitalize on Exploration Successes Through Development of Field Discoveries.

·  Continue to Actively Drill Our Multi-Year Prospect Inventory.

·  Enhance Returns Through Operational Control.

Accordingly, on the way our republic to globalization western business ethics has to be learned by every subject of petroleum industry. Petroleum companies located in Kazakhstan have to make every effort to change the law about preservation of the environment. On republic level, government should coordinate with petroleum companies and work on projects for transportation petroleum to western market together. All these efforts and actions will lead our republic to bright future for both petroleum companies and state. While working on these problems, the business model and strategy of “Brigham Exploration” company is a wonderful example of finding oil and gas in Kazakhstan successfully and achieving attractive return on investment at the same time.

2006 year



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