Kazakhstan To Increase Funding For Exploration

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The Kazakh Ministry of Investments and Development plans to increase funding for the geological exploration. According to the statement made by Minister Zhenis Kassymbek, additional funds from the budget will not be required for this purpose. The ministry plans to reallocate the budgeting of a number of existing programs, and to focus on exploration as priority. The ministry expects to conduct exploration works, and then to offer ready-made projects to transnational companies that are interested in mining.

ZHENIS KASSYMBEK, KAZAKH MINISTER OF INVESTMENTS AND DEVELOPMENT: When we allocate funds for the exploration at about 10%, the rest is paid by a private  company. Today, 7 large multinational companies that operate in the world are working out these matters. Therefore, next year, we will try to increase funding for the primary exploration works.   Successful exploration of oil fields may help increase production and processing of natural oil. Construction of a large processing plant has started in Atyrau region The plant will be located close to the Tengiz field. This will be an oil processing plant of the third generation.

RZABEK ARTYGALIEV, GENERAL MANAGER FOR POLICY, GOVERNMENT AND PUBLIC AFFAIRS, TCO: The project is aimed, after its implementation, to increase the volume of crude oil to 12 million tons of oil. If now we extract 26-27 million tons of oil per year, after the expansion of the project, we expect plus 12, which is 38-39 million tons of oil per year.   The plant will be assembled from modules, manufactured in Kazakhstan, South Korea and Italy. More than 1,500 Kazakhstani companies have already expressed their desire to participate on the major project.

SULEIMEN AKDRASHEV, MANAGER, KAZAKHSTAN’S OIL SERVICE COMPANY: We are bidding the tender for the Future Growth Project at Tengiz. And we are ready to work on this project, which will last for about 5-6 years, which has already attracted large investments. We are ready to take on the 25% of all construction and installation works.   According to experts, in the coming years, the number of produced oil in Atyrau region will increase by tens of millions of tons due to launch of Kashagan offshore field, which will produce an additional 17 million tons of hydrocarbons.