Strategy
Nostrum is focused on realising the significant value of its gas processing infrastructure.
Our Purpose
To work as close-knit and well-integrated team across all disciplines to deliver excellence across the whole of our value chain.
Our Vision
To add value to the region through the utilisation of our state-of-the-art infrastructure hub.
Our Values
We are trustworthy and reliable, take our corporate, social and ecological responsibilities extremely seriously, and are dedicated to the health, safety and wellbeing of our employees.
A strategy for the future
Following the completion of the Restructuring the Company will focus on unlocking the full potential and value of its existing world-class gas processing infrastructure.
Strategic pillars
2022 priorities
KPIs
Risks
Forecasts, objectives and prospects for 2022-2024
Delivering
SETTING THE FOUNDATION FOR FUTURE GROWTH
- Strengthening of corporate governance with new, highly experienced Board
- Strong ESG performance focus: contributing to energy security and transition to cleaner energy
- Completion of major bond restructuring unlocks new opportunities to chart the next chapter of our growth
- Advance ongoing discussions with third parties interested in supplying raw gas to take advantage of the Group’s gas processing capacity
- Complete EPCI scope for the UOG midstream tie-back
- Appraise additional upstream assets to strengthen Group’s hydrocarbon resource base • Ensure the safety of employees, contractors and the environment
- Ensure the safety of employees, contractors and the environment
- Continue adherence to “Golden Rules”
- Further improve ESG Risk rating (Sustainalytics scoring)
- Conclude commercial processing contracts.
- Total recordable injury frequency.
- Lost time injury frequency.
- Road traffic incidents.
- Greenhouse gas emissions.
- HSE Stop Cards.
- Focus on improvements across ESG and ultimate upgrade in rating.
- Ongoing negotiations with various counterparties are complex and commercially sensitive, and there can be no certainty that agreement will be reached.
- Legal framework for environmental protection and operational safety still being developed in Kazakhstan.
- Impact of equipment failure.
- Execute binding commercial contracts to fill the Group’s spare gas processing capacity with third-party volumes.
- Improve contractor safety management.
- Improve Supervisor HSE competence.
Optimising
MANAGING OUR LIQUIDITY
- We are structurally addressing our cost base and building a cost-conscious culture to support our growth ambitions, improve our balance sheet, offset inflationary pressures, and thereafter gear our business to deliver operating leverage consistently
- Cash flow growth through disciplined capital and cost management
- Continue to challenge costs whilst pivoting towards growth and transitioning into a multi-asset energy company
- Evaluate all sales routes for sustainability and profitability
- Manage Opex and reduce G&A.
- Balance sales mix and maximise netbacks.
- Sustained higher prices can lead to cost inflation in Kazakhstan.
- Continued COVID-19 restrictions may impact operations.
- Restructuring charges may offset effect of some cost reductions.
- Further spend on reservoir assessment might be needed.
- Manage cash resources to ensure that the Company can continue to operate at the levels required to achieve its objectives.
Maximising
LAUNCHING OUR STRATEGY
- We remain confident in our long-term growth strategy, while broadening our opportunities with investments in future growth best-in-class facilities and continuous improvement of our portfolio in the industry
- We have developed multiple strategies to commercialise the spare capacity in our world-class gas processing facilities
- Well-positioned to become a major third-party gas processor
- Utilise workover rig and rigless activities as well as other technologies to slow existing production decline
- Complete subsurface studies to allow resumption of low-risk drilling campaign
- Complete field development feasibility studies of newly acquired upstream assets.
- Maximise uptime of existing wells and production facilities.
- Deliver gaslift expansion project.
- At low production levels, unexpected sub-surface events could severely impact the Group’s operating cash flow forecast.
- Reduce decline rates in existing producing wells.
- Identify technologies to increase well productivity and reduce sub-surface risk for future drilling programmes at Chinarevskoye.