Oil and Gas

BATT Corporation has been involved in the oil and gas sector of Kazakhstan and Russia since 2002, demonstrating stable dynamic growth and development. 150km east of Aktau in Southern Mangyshlak on the territory of Kazakhstan, the company is developing the “Tenge” oil and gas deposit where the company has a 100% share in the project. According to the Kazakh Government balance statement, the “Tenge” deposit contains proven (C1) and probable (C2) category oil reserves of 16.108 million tonnes (119 million barrels) and proven gas reserves (C1 category) equivalent to 22.95 billion cubic metres (810 billion cubic feet). According to reserve audits undertaken to international standards by the independent international consulting company “McDaniel & Associates Consultants”, the commercially significant reserves of oil and gas at the deposit are:

 

Category Mln Barrels of Oil Bln Cubic ft of Gas
2P (Proven + Probable reserves) 58.608 548.422
3P (Proven + Probable + Possible reserves) 106.389 840.665

 

  • Deposit completely studied using 3D seismic surveying across an area of 154 km2.
  • Fully integrated interpretation has been made of the data from the 3D seismic survey.
  • Reprocessing of the 3D seismic survey field completed.
  • The integrated volume of geological oil and gas deposits was constructed.
  • Analysis of dormant and used borehole inventory.
  • Underground works and major repairs to boreholes have taken place.
  • Primary borehole drilling recommendations (up to 19 boreholes).
  • Estimate of Triassic deposit potential.
  • Preparation and correction of business plan for development of the deposit.

 

In order to prime the accelerated development of the deposit, BATT Corporation is working on attracting the participation of strategic investors.

BATT Corporation is also working on the prospecting and development of the “Khanty-Mansiysky” oil and gas project in Western Siberia on the territory of the Russian Federation (The Nazymsky Oil and Gas Development Expedition and the Khanty-Mansiysky Oil Company) with a 25% stake in the project.

According to the State Reserve Commission of the Russian Federation, the total reserves of oil at the project deposits in categories C1 and C2 account for 63 million tonnes (457 million barrels).

Through its branch network, BATT Corporation is now included in one of the most prospective oil companies of Russia, Timan Oil & Gas plc. The company is registered on the London stock exchange and has adopted the Nizhnechutinsky and Khudoelsky deposits in North-Eastern Russia (The Komi Republic). The total reserves of oil at the deposit according to the State Reserves Committee of the Russian Federation in categories C1 and C2 account for 106 million tonnes (780 million barrels).

The development of the oil and gas sector is a priority for BATT Corporation and through the affiliation of Kazakhstan and international companies, the corporation intends to further diversify its portfolio in this business sector, increase capitalisation and improve infrastructure at all levels.

Construction

One of the principal areas of activity of BATT Corporation is construction which is represented on Kazakhstan’s market by the company BATT Stroyinvest.

Modern standards and timescales demand that construction companies embrace such qualities as flexibility, rapid development rates and the ability to be active in all aspects of the industry. BATT Stroyinvest is a modern multifunctional construction company. The latest equipment, a team of the best professionals and an ability to make timely and correct decisions have resulted in the company being one of the best in the market and its buildings are considered by right to be industry benchmarks.

Throughout its existence since its inauguration in 2001, the company has successfully commissioned a number of large-scale projects:

  • ADEM, the largest trade centre in Central Asia with an area of 155,000 square metres covering 10 hectares.
  • The “Green Homes” luxury single home housing development, where 40 houses with areas of between 350 and 550 m2 are located on 10 hectares of land generating overall living space of 16,000 m2.
  • A modern business centre with underground parking with an area of 6,000 m2.
  • A prestigious nursery school with an area of 1,500 m2.
  • A bespoke restaurant with an area of 600 m2.
  • A bespoke construction project in Urumchi with the support of the Chinese Government covering 183 hectares of land with a building area of 4,000,000 m2.
  • The construction of the Central Asian University campus in Naryn in Kyrgyzstan with an area of 3,000 m2.
  • Construction of the 5-star “Dushanbe Serena Hotel” in Dushanbe, Tajikistan on 2 hectares of land with a building area of 14,000 m2.

Currently, the company is successfully completing work on the construction of the third phase of the ADEM trade centre.

A few years ago, the company successfully invested in the construction project of a large multifunctional complex in the Chinese city of Urumchi. Similarly, BATT Corporation became part of “The World” investment project which is a collection of 300 islands in the form of the world political map located 7 kilometres from the sea shore in Dubai (United Arab Emirates). The territory of the islands covers 35,000 m2 on which it is planned to build a luxury complex of villas and commercial properties.

Food Industry

BATT Corporation is active in the food industry through two enterprises, the “Petropavlovsk Liqueur and Spirits Plant (PLSP)” and the “Medved” trading centre.

Petropavlovsk Liqueur and Spirits Plant

This company can already boast a century long history originating from a small distillery in Nizhniy Novgorod. The spirit plant was relocated to Petropavlovsk in 1942 during the Second World War. The existing Liqueur and Spirits Plant is based on the original industrial facility.

In 2000, the factory passed into BATT Corporation’s management. As soon as in 2001, the product range of the plant had been expanded and the modernised spirit plant was delivering basic raw materials for its own consumption including basic spirit of “lux”, “extra” and “high purity”. This distillery is the only one which exists in the region. Part of its operations includes two specially equipped laboratories, which enable inspection and analysis of incoming raw materials as well as finished goods. Purification of spirit and water-alcohol mixtures is achieved using sand and coal filters which purify the liquid from aldehydes, ethers, fusel oils and mechanical suspensions. In order to achieve the necessary organoleptic parameters, equipment such as silver filters and temperature stabilisers are used.

New sand filters with Zeolite were obtained in 2010. This is a mineral with molecular-sieving, absorption and ion-exchange properties. Its use enables an improvement in the quality of the purified water regarding fundamental physical, chemical and biological parameters as well as increasing the speed of filtering and purification.

Finished goods from PLSP can now be found in all the larger regions of the Republic of Kazakhstan and occupy a well-established position in the market for alcohol products. The factory’s products have won 6 Gold, 5 Silver and 3 Bronze awards in international and republican exhibitions. Gold awards in the Alcoholic Drinks category were gained by the “STATUS silver” vodka and “Kyzyl Zhar” vodka.

Together with new sales technology, the company’s marketing policy and also unique vodka production technology, by rights the company can claim to be one of the most active delivery corporations, which is successfully undertaking its activities and goals.

Medved Trading Centre

Medved Trading Centre is a modern management company, which possesses all the requirements for successfully operating in the Russian and foreign alcohol markets including competitive products and effective management. The company controls its own registered trademarks including: Medved, Kolchuga, Starley and Tulskaya Krepost. Medved and Starley vodka is delivered to 40 cities across the territory of Russia as well as to such CIS countries as Azerbaijan, Armenia and Abkhazia. The market share of Medved is 4% of the premium segment. The Starley trademark is a new brand for the company which was launched onto the market in 2009 and is already demonstrating steady growth. Within Moscow and Russian regions, the Medved trademark is stocked by large retail chains: Metro, Real, Sedmoy Kontinent, Viktoria, Spar, Hypeglobus, Zelgross, Magnet and Ramstor. Agreements have also been reached with “OK”.

Medved Trading Centre produces and delivers high quality vodka to the market to meet consumer demand and abides by the principals of respect for consumers, business partners and society as a whole.

Product Range

The range consists of vodka which meets the highest level of consumer demand for quality, composition and character.

The factory is located in the town of Pron in the Tula region of Russia and is equipped with advanced technology. The spirit production process is monitored with the help of computer software. The manufacturing process from the preparation of the water to the delivery of finished vodka is equipped with all the latest advances in alcohol production technology. In total, it enables the control of stable quality from stage to stage. The company is forecast to grow in the near future and take its rightful place among its competitors.

Commerce

ADEM Trade Centre

Unique in terms of its technical characteristics and universal in its functional qualities, the ADEM project was begun in 2001 and by the end of 2002, the formal opening ceremony was already taking place. Each day, 17,000 people visit ADEM which is the largest trade centre in Central Asia.

The distinguishing features and appeal of ADEM are primarily related to the thought that went into convenience and modern safety standards. Vendors and buyers alike are serviced by escalators, goods lifts, cafes, beauty salons, dry cleaners, bank cashiers, bureaux de changes and modern security and fire control systems. The trade centre’s infrastructure supports over 2000 retail modules and includes parking for 3000 cars, pedestrian walkways, convenient access facilities and a fully equipped warehouse.

In 2010, BATT Corporation completed construction and commissioned the third phase of the ADEM trade centre, increasing the trading floor area by 36,000 m2.

The wide range of goods available is “dictated” by its popular geographical position. The ADEM trade centre is located in the northern part of the city of Almaty, co-located within easy reach of all the wholesale markets. The trade centre is located on the crossroads of the main transit routes which link such countries as Russia, China, Turkey, Uzbekistan and Iran. ADEM trade centre fulfils its function perfectly, filling its business niches and BATT Corporation considers this asset as the most valuable in its general portfolio of assets and intends to both intensify and diversify this business even further.

Philanthropy

Throughout the 20 years of its existence, BATT Corporation has consistently provided assistance to the sick and needy, to WWII veterans and to orphaned children. Corporate Social Responsibility has always been one of the priority directions of the company. A number of mosques and churches have been built in different regions of Kazakhstan. The Orphanage No 8 and Children’s Home No 3 have been under the patronage of the company for many years. Two years ago, BATT Corporation became the founder of the British Haileybury school in Kazakhstan, the goal of which is not only to provide the children of Kazakhstan with high class British education, but also to redirect all the profits of the school towards grants to children in need with special capabilities throughout Kazakhstan. The next logical step in this educational direction was fulfilled with the opening of a British nursery school in the country.

10 years ago, BATT Corporation established the “Holy Sounds” charitable foundation within a global network, the goal of which was to raise awareness levels between people of different cultures through the medium of music. Currently, the philanthropic direction of the company is prolific in the participation and support of globally famous welfare funds including Cinema Against AIDS sponsored by Sharon Stone, the Elton John AIDS Foundation and the Prince’s Foundation for Children and the Arts (patronised by the Prince of Wales).

Metal Ore Mining

BATT Corporation is currently placing heavy emphasis on the development of metal ore mining. Steps are being taken on making essential investments into the acquisition of considerable shareholdings on the territory of the Republic. The company is investing in the development and extraction of nickel, cobalt and gold. Production activities are being made in the North-Eastern and Central regions of Kazakhstan, which are rich in mineral raw materials and non-ferrous metals.

Nickel Projects

Nickel projects are represented within the corporation through the possession of shares in enterprises such as “Asia Invest”, “Kyzyl Kain Mamyt (KKM)”, “AvtoTransService” and “Koitas” which, in their turn, hold long term contracts with the Ministry of Trade and Industry of the Republic of Kazakhstan regarding the following licensed prospecting sites of nickel-cobalt ore deposits:

  • The Kempirsaisky Group of Nickel-Cobalt deposits
  • The Ekibastuz-Shidertinsky Iron-Cobalt-Nickel deposit
  • Summary of deposit reserve characteristics:

     

    Enterprise Dry Ore (Tonnes) Ni
    (%)
    Co
    (%)
    Ni (Tonnes) Co (Tonnes)
    KKM LLP 13,889,065    0.8    0.028 88,616 2,479
    Asia Invest LLP 18,733,257 0.8 0.052 135,688 8,495
    Koitas LLP 10,637,206 0.8 0.047 101,552 9,642
    Autotransservice LLP 47,775,000 0.79 0.051 381,600 24,300
     Total  91,034,528      707,456 44,916

About Company

The history of the largest privately held investment and commercial finance group in Kazakhstan began in 1990 with the small BATT company established by Mr Timur Kuanyshev, Ms Alfiya Kuanysheva and Mr Talgat Kuanyshev. The main initial activities of BATT involved wholesale import and export operations concerning consumer goods, business equipment, vehicles and food.

1991 - The company opened branches in Moscow, Astana, Pavlodar, Uralsk, Kostanai, Petropavlovsk, Taraz and Arkalyk. The General Directors are Mr Oleg Temirov in Moscow, Mr Marat Kuanyshev in Astana, Mr Zhanat Shugaev in Pavlodar, Mr Nurkhan Nurgaliev in Uralsk and Mr Malik Basibekov in Taraz. Ms Natalia Gazeeva became the Chief accountant of BATT.

1992 – The BATT trade centre was established and became a distributor for the world famous European “Berghaus” brand of outdoor clothing. The General Director was Ms Alfiya Kuanysheva.

1994 – The company began its first agricultural trade operations.

1996 – BATT-Agro holding was established based on experience gained in the purchase and sale of agricultural products. The holding included 32 enterprises headquartered in Pavlodar which carried out activities relating to the production, processing and storage of agricultural products as well as trade operations in flour and grain on both domestic and export markets. The sown area comprised 300,000 hectares and the inventory of the holding included 13 grain elevators with a storage capacity of 1.53 million tonnes of grain and 5 flour mills. The holding’s staff comprised 3000 people. The General Director was Mr Evgeniy Karabanov.

2000 – BATT Corporation acquired the assets of the “Petropavlovsk Liqueur and Spirits Plant” industrial complex which subsequently underwent complete modernisation. A new distillery was constructed and commissioned into operation. The General Director was Mr Adilzhan Zhumagulov.

2001 – BK Trade Ltd was founded, specialising in the production and supply of marble, travertine, granite and gabbro. BK Trade Ltd assets comprised 4 marble/granite deposits, 2 travertine deposits and a plant for processing stone using equipment of the famous Italian brand, “Simek”. The General Director was Mr Serik Seitkaziev.

2001 – The company began its move into the direction of construction. Having started its activities involving small construction projects, the “BATT Stroyinvest” company is currently successfully implementing a number of large-scale projects both within the territory of the Republic of Kazakhstan as well as beyond its borders. The General Director was Mr Ernar Makashev.

2002 – A major milestone in the company’s history is considered to be the opening of Central Asian Oil Ltd., which was the parent company overseeing such large oil and gas projects as the “Tenge” joint venture, the “Mukhtar-Konyr-Akmechet”, “Ural-Volga” and “Kolzhan-Uyaly” prospecting blocks, the “Azimuth Ltd” multifunctional geophysical company and the “Caspian Energy Service” service company. Central Asian Oil Ltd made considerable investments in the acquisition of oil and gas assets in Russia including the “Khanty-Mansiysky” oil company, “Preobrazhensk Oil” and “Timan Oil and Gas”. The General Director was Mr Maksat Nauruzbaev.

2002 – The unique “ADEM” trade centre was opened with an initial trading space of 65,000 square metres which as a result of three extensions has now expanded to 130,000 square metres and is the largest trade centre in Central Asia. The General Director is Mr Sadyrdin Akhatov.

2003 – Trading as LEA*D IP Systems with headquarters located in the USA and a technology centre in Israel, BATT Corporation started the implementation of an innovative project on the design, development and distribution of telecommunication systems and platforms based on the internet protocol which could be used as an alternative to existing telephone companies. The General Director was Mr Avi Oron.

2005 – BATT Corporation began actively developing in the direction of ore mining. Acquisitions were made of the “Balazhal”, “Bolshevik” and “Khan Tengri” gold ore deposits. The project head was Mr Daniyar Erenchinov.

Today, BATT Corporation has become a considerable investment company with a differentiated network in various sectors of the economy both within Kazakhstan and beyond its borders. One of the most interesting foreign projects which the company is currently involved in is the investment fund founded in 2009 called “Sino Resources Investment” located in China with headquarters in Beijing and offices in Shanghai and Hong Kong. Together with a number of large international investors as well as the support of CAPID (China Association for the Promotion of Industrial Development), BATT Corporation established a direct investment fund of 150 million US dollars for investing into Chinese companies. During the elapsed time since its foundation, a strong professional team has been built and relationships have been established with a large quantity of investment funds which operate on Chinese territory. The Project Coordinator is Mr Konstantin Ryzhkov.

BATT Corporation is also working on the construction of a multifunctional complex in the Chinese city of Urumchi, is investing in “The World” project in Dubai (UAE) and is associated with many other projects. Apart from that, BATT Corporation is active in the development of the “KazNickel” project which involves 11 nickel-cobalt deposits on the territory of Kazakhstan.

During 20 years of dynamic development, BATT Corporation has grown from a small business consisting of 20 people to the level of one of the largest private finance industry holdings on the territory of Kazakhstan, Russia, China, Tajikistan, the UAE and Israel with extensive infrastructure, professional management and a workforce of 4000 people.

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