Kazakhstan to up oil production by 6 percent this year

Sept. 24. Trend Capital.

K.Konyrova, E.Ismayilov

This year, Kazakhstan will produce 75 million tons of crude oil, 6.2 percent higher than the same figure in 2008, Kazakh Minister of Energy and Mineral Resources, Sauat Minbayev said at the fourth Eurasian energy forum on Sept. 24.

Minbayev said Kazakhstan’s proven oil reserves amount to 4.8 billion tons, which comprises 3 percent of world reserves.

During the speech, Minbayev said that it is now considered to expand the CPC pipeline. The expansion of the project costs $2.5 billion. “The question on expansion has been already solved, but the governance issue remains unresolved,” he added.

In January-August, the shareholders of the Caspian Pipeline Consortium (CPC) at the Southern Ozereyka-2 terminal has shipped about 23 million tons (about 180 million barrels) of grade CPC Blend compared to 20.5 million tons (more than 160.5 million barrels) in the same period in 2008. In 2008, the CPC shareholders shipped terminal 31.5 million tons of oil compared to 32.6 million tons in 2007.

Minbayev said 12.3 million tons of oil has been delivered to the domestic market this year and 6.6 million tons of this volume is the Russian oil. “The situation is so on the domestic processing market at the moment, as the bulk of the Russian oil is supplied to the Pavlodar plant,” said Minbayev.

The plant was built in the 1970 years in the USSR, and it was technologically designated to refine oil from in the Western Siberia field.

Deputy CEO of Gazprom Valery Golubev said on Sept. 24 that in the coming years the Kazakh gas supply from the Karachaganak field in Orenburg will increase. In future, the volumes are expected to increase from the current 7.5 billion cubic meters per year to 9 billion cubic meters.


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3 updated oil refineries to secure home market of oil products


Kanat Kulshmanov

Modernization of three oil refineries of Kazakhstan will allow to fully supply the home market with all kinds of oil products except for motor oils in 2013-2014. Minister of Energy and Mineral Resources Sauat Mynbayev has made it public at the Eurasian Energy Forum in Astana today.

The Minister reminded that the program of modernization of three oil processing plants of Kazakhstan to the amount of USD 4 billion was adopted in May 2009.

 “Once the program is brought into action, in 2013-2014 we will have home market fully supplied with all the kinds of oil products, but motor oils. Besides, gasoline will be of Euro-4 standard”, Mynbayev said.

Along with crude oil Kazakhstan imports oil products. Import of jet fuel makes up 33%, high-octane gasoline – 40%. “It is connected with insufficient capacity and technological level of our oil refineries”, S. Mynbayev added.