Results of the Year Have Been Summarized
At the accounting board in Astana, the Ministry of Oil and Gas of the RK has summarized the results of Kazakhstan’s oil and gas sector development. The industry’s priorities are projects in the field of petrochemistry and providing gas to the country’s capital.
The oil industry
The volume of oil production in Kazakhstan reached 80.06 million tons in 2011. Although it exceeds by 0.5% the 2010 figures, the planned targets have not been fulfilled. “Unfortunately, for known reasons, a number of enterprises have reduced their production, in particular, Ozenmunaigas, by over 19 % compared with the plans,” stated the Minister of Oil and Gas of the RКSauat Mynbayev. “In December, Теngizchevroilalso reduced its production because of emergency stoppages at two technological complexes.”
Under the strategic plan, the expected volume of oil production for the current year is 83 million tons, but in reality the figures, in the Minister’s estimates, will be lower again: “This is connected with ТCOand with Ozenmunaigas reaching the earlier planned volumes of production. At some enterprises, there are objective reasons for the reduction, although smaller ones are marked for certain growth.”
Based on preliminary data from JSC Information and Analytical Oil and Gas Center, the export of oil and gas condensate comprised 71.36 million tons (100.0%) for 12 months in 2011, including in the directions: Аtyrau-Samara –15,427 thousand tons (100.8%), ОGPZ (condensate) – 12,11 thousand tons (60.7%), CPC–28,439 thousand tons (99.9%), Аtasu-Аlashankou – 10,894.007 thousand tons (107.9%), the seaport of Aktau – 7,964.826 thousand tons (84.1%), and by railway – 7,422.767 thousand tons (123.1%).
Oil processing at domestic oil refineries, according to data from Information and Analytical Oil and Gas Center, therefore amounts to 13,725.7 thousand tons. The oil produced by three refineries included: gasoline – 2,757.6 thousand tons (95%); diesel fuel – 4,064.3 thousand tons (99%); black oil – 3,660.1 thousand tons (97%); and aviation kerosene – 387.1 thousand tons (79.1%). The Ministry of Oil and Gas explains the reduction in production of petroleum products by the fact that, in 2011, the oil delivered from Russia to Pavlodar Oil Refinery was heavier and more sulphurous. Deterioration in the quality of oil was especially observed in the first half of 2011, when the content of sulfur increased to 1.22% (the plant’s process equipment is designed for processing of oil with a content of sulfur less than 1%). Deterioration in the quality of delivered oil leads to reductions in processing yield and the production of light petroleum products, and also to the premature deterioration of equipment.
The gas industry
In 2011, theproduction of gas in the republic reached 39.5 billion m3 (106% of the 2010 levels). The amount of natural gas consumed by the regions was estimated at 10.2 billion m3 (113.0%). In accordance with the agreement for counter deliveries of gas concluded between OJSC Gazprom, NC Uzbekneftegas and JSC NC KazMunayGas on December 27, 2006, the whole import of gas is “swapped” with the Karachaganak export at equal price and in equal volumes.
The amount of gas exported from the republic amounts to 8.2 billion m3 (89.9%). It produced 2,147 million tons of liquefied hydrocarbon gas (95.6%). The transit of gas through the republic’s territory was estimated at 96.7 billion m3 (118.1 %), including: Russian – 62.0 billion m3, Turkmen – 26.5 billion m3, and Uzbek – 8.2 billion m3.
The development of the Аmangeldy gas field in Zhambul is underway. As of January 1, 2012, 326.5 million m3 (94.9 %) of gas and 21.9 thousand tons of gas condensate had been produced there.
According to operational data, during implementation by subsoil users of gas utilization programs the volume of flared gas is 1.2 billion m3, 90.3 % of that burnt off in the same period of last year.
Regarding the construction of the Kazakhstan-China gas pipeline, on July 27, 2011, a Protocol was signed on the introduction of amendments and additions to the Agreement of August 18, 2007 between the government of the Republic of Kazakhstan and the government of the People's Republic of China about cooperation in the construction and operation of the Kazakhstan-China gas pipeline. The protocol envisages that the construction of the third section of the first site of the Каzakhstan-China gas pipeline will increase capacity to 65 billion m3 annually. Interstate procedures for bringing this document into force are currently being processed. JSC KING and СРРЕcompleted work on correcting the design estimates on the “linear part” section and obtained the appropriate conclusion from RGP Gosexpertiza. The ceremonial welding of the first joint of the gas pipeline in Turkestan was held on September 6, 2011.
To date, the formation of the Kazakhstani part of the charter capital in the design company, worth $500 million, has been completed. Negotiations with the Chinese side are currently underway on how to attract project financing and the Chinese part of the charter capital in the design company.
With the aims of providing energy and environmental security to the Republic of Kazakhstan, creating conditions for the uninterrupted provision of gas to the maximum number of consumers, increasing the share of gas in the Republic’s fuel and energy balance, and establishing conditions for efficient utilization of associated gas for the economy’s needs, the Ministry of Oil and Gas in 2010 elaborated the draft law “On gas and gas supply,” which was signed by the President of the RКon January 9.