Operators of largest oil fields in Kazakhstan to set up JV

Sept 16. Trend. Astana

By Daniyar Mukhtarov

Operators of largest oil fields in Kazakhstan to set up JVOperators of the largest oil fields in Kazakhstan – Kashagan, Karachaganak and Tengiz – will create a joint venture (JV) in the areas of drilling and engineering, First Vice-Minister of Energy of Kazakhstan Uzakbai Karabalin said Sept.16 at a briefing in central Communications Service under the President of the country.

“With the active phase of expansion of Tengiz, Karachaganak and Kashagan projects high-tech types of service and equipment will be needed, and we will need to use every opportunity to create competent local companies. Optimal option is to set up joint ventures with world leaders with the assistance of advanced technologies. It should be emphasized that the creation of joint ventures in the fields of drilling, design, providing geophysical services together with the Karachaganak, Tengiz, Kashaga project operators is already being worked out,” he said.

He added that a joint venture for drilling operations, as well as a joint venture on the design involving two Kazakh and two foreign companies has already been created on the Tengiz field.

The negotiations between the Saipem Italian Company and Kazakh partner on the establishment of the joint ventures on Karachaganak field are underway, Karabalin said.

He said that there remains a trend of increase in the share of purchases from Kazakhstan producers in monetary terms, according to reports of the subsoil users.

“The volume of purchases from Kazakh producers in 2010 amounted to 681 billion tenge if assumed in monetary terms, and the index exceeded 1.5 trillion tenge (KZT 182 = $1) last year. Proportion of local content in the total amount of purchased goods, works and services increased from 45 to 57 percent,” the first deputy minister said.


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Prices for AI-92 and diesel fuel remain unchanged in Kazakhstan

Sept 16. Kazpravda

By Shynar Ospanova

In September this year, Kazakhstani refineries are planning to produce 250 000 tons of gasoline, including 186 000 tons of AI-92.

Prices for AI-92 and diesel fuel will remain unchanged in Kazakhstan, said First Deputy Minister of Energy of Kazakhstan Uzakbai Karabalin, Kazpravda.kz reports.

“The proposal to increase the prices of diesel fuel and gasoline was not supported by the Government, that is, today, the prices remain unchanged (128 tenge per liter of AI-92, 115 tenge per liter of diesel fuel – the author’s notes),” – said Uzakbai Karabalin at the briefing in the central communications Service.

U. Karabalin informed that in September the domestic refineries will produce about 250 000 tons of gasoline. “Today, the plants are working hard and are fully loaded. At that, it is expected to produce 186 000 tons of AI-92 fuel, while the market demand for gasoline products is about 280 000 tons,” – he went on.

“Talks have been held with a number of companies. At present the agreements are reached on the import of 69 000 tons of gasoline. 9 600 tons have already been delivered, 9 700 tons were shipped, and 200 tons are on the way,”- said Deputy Minister.

In this regard, the KazMunaiGas negotiated with other suppliers from Azerbaijan and Turkmenistan, but nevertheless, it is not possible to cover the current deficit. Therefore it was decided to maximize load of Kazakhstani refineries to supply petroleum products to the domestic market.


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Kazakhstan intends to buy Azerbaijani petroleum products

Sept 16. Trend. Astana

By Daniyar Mukhtarov

Kazakhstan’s KazMunaiGas National Oil and Gas Company is holding negotiations with the State Oil Company of Azerbaijan (SOCAR) to purchase fuels and lubricants, Kazakhstan’s First Deputy Energy Minister Uzakbai Karabalin said at a press conference in Astana on Sept.16.

“Thereby, Kazakhstan intends to cover the shortage of petroleum products in its domestic market,” Karabalin said, adding that the country also holds talks with Russia and Turkmenistan to purchase fuels and lubricants.

The deputy minister went on to add that it has been agreed to import around 690,000 metric tons of gasoline to Kazakhstan, stressing that to date, only 9,600 metric tons of gasoline has been imported to the country, 9,700 metric tons of gasoline was shipped from the country and 200 metric tons of gasoline is yet to be delivered.

Karabalin underscored that one third of the fuels and lubricants consumed in Kazakhstan is imported from Russia.

“However, currently, there is a difficult situation in Russia, as its Achinsk refinery has just now started full production after the accident. Additionally, scheduled repair work started in several Russian refineries in autumn.”

He stressed Russia started to deliver a part of its petroleum products to Crimea from 2014.

“Thus, the Russian market faces a tense situation with fuels and lubricants and therefore, they will not be able to supply fuels and lubricants to other countries as it was before,” Karabalin added.

The first deputy minister underscored that the significant difference in prices for fuels and lubricants in Kazakhstan and Russia also prompted Kazakhstan to turn to its neighbors (Azerbaijan and Turkmenistan).

“The price for one liter of AI-92 gasoline is 128 tenge in Kazakhstan, while it is equal to 160 tenge ($1=182 tenge) in Russia. The price for one liter of diesel fuel is 115 tenge in Kazakhstan, versus 170 tenge in Russia,” Karabalin said, adding that so, few companies and individuals will be able to purchase Russian oil products at such high prices.

The deputy minister stressed that it has been decided to postpone the scheduled repair at the Shymkent refinery (south Kazakhstan) to February or March or April of 2015, in order to provide the domestic market with fuels and lubricants.

Karabalin said it is planned to produce around 250,000 metric tons of gasoline of all brands, including, AI-92 gasoline (186,000 metric tons) in September 2014, adding that the market demand for this gasoline brand is 280,000 metric tons.

“September has always been a tense month, but the harvesting campaign is coming to an end and the volume of diesel fuel used during the harvesting campaign will soon be delivered to the market again,” the deputy minister said and expressed hope that the country will manage to eliminate the shortage of oil products.

Three large refineries – Pavlodar refinery, Atyrau refinery and Shymkent refinery – operate in Kazakhstan and their total processing volume nears 13 million metric tons.


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Oil production in Kazakhstan decreases, gas production goes up

Sept 13. Trend. Astana

By Daniyar Mukhtarov

Crude oil production (including gas condensate) amounted to 53,585 million metric tons for 8 months of this year in Kazakhstan, which is 0.7% less than in the same period in 2013, Statistics Committee of the Ministry of National Economy said.

At the same time production of crude oil amounted to 45,012 million metric tons (a 1.9 percent decrease), condensate – 8,573 million metric tons (a 6.1 percent increase).

Some 28.3 billion cubic meters of natural gas (a 1.7 percent increase) was produced during the reporting period, the Statistics Committee of the Ministry of National Economy said.

Natural gas in the gaseous state accounted for 14.14 billion cubic meters (a 5.2 percent increase), associated petroleum gas – 14.16 billion cubic meters (a 1.1 percent decrease).