Kazakhstan to optimize taxes for mining enterprises

Feb 11. Trend. Astana

By Daniar Mukhtarov

Kazakhstan to optimize taxes for mining enterprisesKazakhstan will optimize taxes for mining enterprises until the end of the first quarter of 2015, the Kazakh energy minister, Vladimir Shkolnik, said Feb. 11.

He was addressing an expanded government meeting held with participation of the Kazakh President Nursultan Nazarbayev.

“Due to the fall in world oil prices all the mining companies in the country took measures in 2015 to reduce costs.” said Shkolnik. “However, the financial condition of main mining enterprises is being analyzed together with the government’s economic bloc.”

“Measures will be taken until late March to optimize taxation and reducing the current investment costs to maintain the level of production,” he added.

The minister said the Kazakh oil exports stood at 62 million metric tons, of which some 35 million metric tons were sent for export via the Caspian Pipeline Consortium’s (CPC) system.

Earlier, it was reported that the customs duty for the export of oil stands at $80 per metric ton, and the average cost of oil production in Kazakhstan amounts to $50 per barrel.

Minister Shkolnik said a work is underway to expand the CPC’s capacity up to 67 million metric tons. The deadline for these works is 2016.

“Some 15 million metric tons of oil was processed in 2014 – this is four percent higher than in 2013,” said Shkolnik.

The minister further noted that currently the issue of constructing the fourth oil refinery in Kazakhstan is being studied.

Earlier, President Nazarbayev raised the issue of construction of the fourth oil refinery.

Currently, three major oil refineries operate in Kazakhstan, namely, the refineries of Atyrau, Pavlodar and Shymkent.

http://en.trend.az/business/economy/2363015.html

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Kazakhstan establishes maximum retail prices for fuels, lubricants

Feb 11. Trend. Astana

By Daniyar Mukhtarov

Kazakh Ministry of Energy has set price limit on retail sales of fuels and lubricants, the ministry said Feb.11.

Energy Minister Vladimir Shkolnik signed an order on February 11 “On establishment of marginal prices for the retail sale of oil products, on which the state regulation of prices was established.”

The maximum price for retail sales of diesel fuel is set at 99 KZT per liter, AI-80 gasoline – 89 KZT per liter, AI-92/93 gasoline – 99 KZT per liter, according to the order.

The official exchange rate for February 11 is 185.05 KZT / $1.

http://en.trend.az/business/economy/2362978.html

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Tengizchevroil output seen rising 42 pct by 2021 -minister

Feb 11. Reuters

Chevron-led venture Tengizchevroil (TCO), Kazakhstan’s largest oil producer, is expected to boost output by 42 percent to 38 million tonnes by 2021, Kazakh Energy Minister Vladimir Shkolnik said on Wednesday.

TCO, which is developing the giant onshore Tengiz oilfield in western Kazakhstan, had output of 26.7 million tonnes last year, down from a record 27.1 million in 2013.

TCO’s production is expected to remain flat this year, Shkolnik told a government meeting.

In October, Kazakhstan’s government gave the go-ahead to a TCO expansion project.

“The probable date for launching new expansion facilities is 2021,” Shkolnik said on Wednesday.

The government is working with the TCO consortium to find ways to cut the project’s costs, Shkolnik said.

“Our main demand is that the flow of dividends and profits to the republic (from TCO) should not be smaller, but on the contrary, should rise from this project’s expansion,” he said.

Shkolnik said last year the government disagreed with the $40 billion expansion project budget presented by TCO and would “fight and check” its every figure.

TCO’s output is crucial to support Kazakhstan’s stagnant oil output this year and next before the giant Kashagan oil project, shut due to gas leaks in its pipelines in October 2013, is restarted in the second half of 2016.

Kazakhstan’s oil production fell by 1.2 percent to 80.8 million tonnes last year. It is officially forecast to slip to 80.5 million this year.

U.S. oil major Chevron holds a 50 percent stake in TCO.

Kazakhstan, the second largest ex-Soviet oil producer after Russia, holds a 20 percent stake in the venture via state oil and gas firm KazMunaiGas. Exxon Mobil has 25 percent and Lukarco, controlled by Russia’s Lukoil, the remaining 5 percent.

http://www.reuters.com/article/2015/02/11/oil-kazakhstan-tengizchevroil-idUSL5N0VL0HE20150211

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