Three foreign investors in Kazakhstan declared their withdrawal from projects on Caspian Sea in 2012

Jan. 22. Trend. Astana

By D. Mukhtarov

Three foreign investors in Kazakhstan declared their withdrawal from projects on Caspian Sea in 2012In 2012, three investors at once have declared about their intention to leave the projects on the Caspian Sea, Kazakh Petroleum reported citing anonymous sources.

“In the spring of 2012, French Total has notified officially the Ministry of Oil and Gas about refusal to develop the site Zhenis. In September, the Italian concern Eni in written statement officially informed the Kazakhstan authorities about refusing from the Shagala site, Petroleum reported.

According to the information, this failure may adversely affect and a number of infrastructure projects on joint projects “KazMunaiGas” (KMG) and Eni to “Karachaganak” (construction of a gas processing plant) and reconstruction of the Pavlodar refinery, called Projects “Directorate EP under construction.” The implementation of these infrastructure projects were directly linked to the development of the Caspian areas “Isatay – Chagall.”

As stated in the report, refusal from this project can have a negative impact also on a number of infrastructural projects being implemented jointly by KMG and Eni at Кarachaganak (construction of a gas refinery) and reconstruction of Pavlodar Oil Refinery, the so-called KMG’s Unit for Implementation of Projects. Realization of these infrastructural projects was directly linked with the development of the Caspian sites Isatai – Shagala.

“By its refusal from the Shagala site, Eni has actually refused from obligations taken within the projects of the Unit. Meantime, the Italians have not lost interest in the development of the site Isatai so far,” the publication says.

The loudest ‘notification’ on the shelf has come from ConocoPhillips, Petroleum said.

“In the summer of this year the company has repeatedly notified Kazakhstan and the partners that it does not exclude the sale of its shares in the Kashagan project and project N,” the publication said with reference to the sources.

As reported earlier, Kazakhstan could buy part of share of ConocoPhillips in the North Caspian project. But already the Chinese and Indian companies have shown interest in it.

“According to the anonymous employees of Shell Kazakhstan, the reasons for the drop in the interest of investors to the shelf are several. The authorities, acting in the channel of a ‘creeping nationalization policy’ and radically reconsidering the subsoil use legislation and changing the investment climate in the country, have forgotten to consider a golden rule of oil companies in exploration activity: “every fifth exploratory well shall repay back and give profit after four unsuccessful exploratory wells,” according to the Petroleum’s material.