Minister: Increase in gasoline prices not expected in Kazakhstan in first quarter of 2014

Nov. 13. Trend. Astana

By Daniar Mukhtarov

Minister: Increase in gasoline prices not expected in Kazakhstan in first quarter of 2014Gasoline prices in Kazakhstan will not be increased till the end of the first quarter of 2014, Kazakh Minister of Oil and Gas, Uzakbai Karabalin said on Nov. 13 at the plenary session of the Majilis (the lower chamber) of the Kazakh Parliament.

According to the minister, the Agency on Regulation of Natural Monopolies of Kazakhstan and the Ministry of Oil and Gas will continue monthly monitoring of the changes in oil prices quotations.

“Prices will be adjusted in accordance with the approved rules. Increase in petroleum products prices is not expected till the end of the year. We also give the same forecast for the first quarter of 2014,” the minister said, responding to MP Shavkat Utemisov’s question on measures taken to stabilise the price of gasoline.

The minister also said the government regulates the retail prices of AI-80, AI-92 gasoline and diesel fuel in order to avoid sudden changes in prices of fuel and lubricants.

“Calculation of the maximum retail prices is conducted in accordance with the rules, taking into account transport costs and import duties, excises of expenditures of storing at the dollar rate, as well as oil prices quotations. Currently, the average annual consumption of best-selling AI-92, AI-93 gasoline is about 2.6 million tons, of which about 30 per cent accounts for Russian petrol. In Russia the retail price of this oil brand is 30 tenges (153.26 tenge = 1 dollar) per litre, or about 20 per cent more than the price for Kazakh oil,” Karabalin said.


Kazakhstan Oil Ministry has nothing to say about suspension at Kashagan

Nov 13. Tengrinews

By Baubek Konyrov

The Kazakhstan Ministry of Oil and Gas declines to make any statements on suspension of production at Kashagan until the causes and those responsible are identified, Tengrinews reports.

When asked to confirm that production of oil at the Kashagan field had been suspended, Minister of Oil and Gas Uzakbai Karabalin said: “We do not have the complete information yet. The results of the analysis have not been presented. As soon as we have the results we’ll be able to respond.”

“We will make a statement once we learn the causes and know who is responsible,” the Oil Minister elaborated.

Last week, one of the prominent American newspapers reported that production at Kashagan was not going to restart until next year.

The production started in September 2013. It has been suspended several times due to technological issues at the oilfield and supporting infrastructure.

Kashagan is expected to produce around 8 million tons of oil in 2014. “The oil field is huge and one of a kind. At the same time the oil field is very complicated. Being an oil worker myself, I can say that it is one of the most difficult oil fields to develop in the world,” said Karabalin earlier. According to Minister Karabalin, development of the oilfield is complicated by the shallow waters that freeze up in winter, because of high sulfurated hydrogen content and high pressure in the layers. That’s why Kashagan requires highest engineering solutions.