Kazakh Oil & Gas Minister commented on sale of ConocoPhillips share in Kashagan project


Kazakh Oil & Gas Minister commented on sale of ConocoPhillips share in Kashagan project“Kazakhstan does not interfere into the sale of ConocoPhillips share in Kashagan project,” Minister of Oil and Gas of Kazakhstan Uzakbai Karabalin said.

The Minister commented on the rumors that if ConocoPhillips sells its stake to the Chinese company, as it is stated in the mass media, China will strengthen its position in the oil and gas sector of Kazakhstan.

“In my opinion, there’s nothing wrong about it. The Kashagan project involves other big names [companies] that will work together,” Karabalin added.

«Conoco Phillips» is ready to sell its 8.4% stake in the Kashagan project. In late November, the company has officially notified the government of the Republic of Kazakhstan and the project partners of its intention to sell its stake. The acquisition price is $5 billion. Kazakhstan has a priority right to purchase the shares in the oil and gas projects in the event of the sale of existing owners.


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Kashagan oil production starts no later than October 2013 – Minister Karabalin


Experimental commercial oil production at Kashagan deposit will begin no later than October the current year, said Uzakbai Karabalin, Minister of Oil and Gas of Kazakhstan, being on a visit to Atyrau region.

“In general, the project readiness is 98 percent. We have examined the state of availability of the islands where oil will come from. It is hoped that the operation will start in October. There are kilometers of pipeline facilities which should be connected and work smoothly, without a single mistake or leak. Therefore, the responsibility is very high. Do not get excited.

But at the same time, we see that contractors are working very hard. Those results, following the equipment testing, are encouraging. And we hope that this year will be successful”, said U.Karabalin.


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Construction of petrochemical complex begins in Atyrau region


In Atyrau region is starting construction of a petrochemical complex worth $ 9 billion. The construction site of the new facility, which is being built under the Forced Industrialization Program, has been visited by the Kazakh Minister of Oil and Gas Uzakbai Karabalin. As he has been informed, a railway siding and a road have been lined to the site.

At the beginning is the first stage of the building phase. It will start in the fall. This stage involves creation of polypropylene production with capacity of 500 thousand tons per year. Project implementation period is 2016 with the launch in early 2017. It costs KZT 304.5 billion. What is particularly important for the region is that for the period of construction works on the project 4,800 people will be employed. About 500 of them will later stay on to serve modern settings.

The second phase is production of polyethylene itself. This project is designed to produce 800 thousand tons per year. Already have been worked out draft estimates of construction, which will be completed in 2017. Around 2900 workers and professionals will be engaged, and 480 of them will stay working then.