Kazakhstan’s oil output to increase in 2010

May 19. Reuters. PARIS

Kazakhstan's oil output to increase in 2010Kazakhstan’s oil output will rise by 4.7 percent this year, coinciding with a rise in its economic growth, Vice Energy Minister Lyazzat Kiinov said on Wednesday.

He said gas production would nearly double by 2015 to reach 65 billion cubic metres (bcm), up from 37 bcm last year.

“In 2010 there will be further social and economic growth,” Kiinov said at an oil and gas conference in Paris.

He said gross domestic product would increase to between 1.5 to 2 percent in 2010, up from 1.1 percent in 2009.

The resource-rich Central Asian nation returned to growth in the fourth quarter of 2009 after the global economic downturn and a slump in commmodity prices sent the economy into a tailspin during the first three quarters.

Referring to the growth of the oil and gas sector, he said he wanted a “reliable, fast and diverse” export system, but this would be impossible without the participation of neighbouring countries.

Kiinov reiterated that Central Asia’s top oil producer, which has announed plans to review some contracts with foreigners, would not target its largest project Kashagan.

“Investors in the Kashagan field will not have to give a share to the state,” Kiinov said, adding that any state participation in the Caspian offshore field would be based on negotiation.

The development of Kashagan, the world’s largest oil discovery in 40 years, is covered by one of the contracts known as production sharing agreements (PSAs).

The field is being developed by ENI, Total , Shell, ConocoPhillips, ExxonMobil , Inpex and Kazakh state firm KazMunaiGas.

Commercial production at the field is due to start in 2013.