On October 5 in Astana the chairman of the board of JSC SamrukKazyna NWF T. Kulibayev has presented a new chairman of the board of JSC NC KazMunayGas. Каirgeldy Kabyldin was replaced by Bolat Akchulakov, who earlier held the post of general director of PSA LLP. Bolat Akchulakov was born in Guriyev (nowadays, Atyrau) on April 9, 1971. In 1993 he graduated from the Kazakh State Academy of Management; economist. He worked as a chief economist at АlemBank Kazakhstan, director of Tengiz project department of JSC NC Kazakhoil, executive director of JSC NC KazMunayGas. He held the post of Vice-Minister of Energy and Mineral Resources and managing director of JSC Samruk-Kazyna NWF. Since July 2010, he is a general director of PSA LLP.
On October 10, in accordance with resolution of the board of JSC Samruk-Kazyna National Welfare Fund (NWF), Каirgeldy Kabyldin was appointed the General Director of JSC KazTransOil. He was born in 1953 in the Pavlodar region. He graduated in 1975 from the Kazakh Polytechnic Institute (specialty: electronic calculating machines, qualification: engineer-electrician). He has been working for over 30 years in the republic's oil and gas industry having a big professional experience ranging from service engineer to the chairman of the board of JSC NC KazMunayGas. He held various senior level positions in the Ministry of Oil and Gas of the RК, CJSC KazTransOil, CJSC NC Oil and Gas Transportation, JSC Kazakhstan Holding on State Assets Management Samruk, etc. He is a holder of Kurmet Order of the Republic of Kazakhstan (1999) and Honorable Oilmen of the Russian Federation (2001).
NC KazMunayGas has started the conduct of an independent audit of oil reserves. The audit will be carried out by Gaffney, Cline & Associates under the international standards in compliance with PRMS method (earlier SPE method) as of December 31, 2011. КМG has chosen PRMS (Petroleum Resources Management System) which is based on the dynamics of indices of development and assessment of initial geological reserves by categories. This method provides a rather exact picture of cumulative reserves accessible for operation during the field's entire service life. For example, PRMS system is used by the Society of Petroleum Engineers (SPE), the World Petroleum Congress (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE). KMG's managing director on exploration and production (member of the board) Alik Aidarbayev has stressed that to date, the KMG's recoverable reserves comprise 800 million tons under the Kazakhstan classification. Under a current level of consolidated production, KMG is provided by the proved oil reserves for more than 35 years.
Since October 11, JSC KazMunayGas Exploration & Production, in accordance with the decision of the Board of Directors of September 15, 2011, started implementation of the program for the repurchase of its shares since October 11, 2011. The process of repurchase will be held in accordance with the requirements of stock exchanges and will be completed by December 31, 2012. The decision of the board of directors of KMG EP on the repurchase of part of shares placed on the stock market and the company's global depositary receipts (GDR) demonstrate the confidence of management in the value and prospects of the company. Besides, this step allows the company to use more efficiently the money resources in the interests of all shareholders. Under this program, the company intends to acquire ordinary shares placed at the Kazakhstan Stock Exchange (KASE) and GDR placed on the London Stock Exchange (LSE) for a total amount of up to $300 million. The shares and GDR will be acquired under a prevailing market price at the date of purchase. The company will announce daily the results of deals of the previous day prior to the start of trades on LSE, informs KMG EP's press-service.
On October 11, Trader Vitol has renewed deliveries of Kazakhstani oil to Iran under the substitution scheme after more than a year break. The party of 4.7 thousand tons was delivered from the Kazakhstani port of Aktau to Iranian Neka via the Bakikhanov tanker. In early June, Vitol has signed a six-month prolonged contract with Iranian Nico according to which since July the trader is shipping 30-35 000 tons of Okarem oil a month to Iran from Turkmenia. Prior to the termination of deliveries from Kazakhstan to Iran in May of the past year, Vitol exported 80-110 000 tons of oil a month in this direction. Shipments were suspended because of deterioration of economic conditions as a result of toughened international sanctions in regard to Iran. In January-June 2010 the deliveries of the Caspian oil to Neka comprised 1.3 million tons compared with 4.1 million tons in 2009 and 3.6 million tons in 2008.
On October 12, in Astana, the director on exploration of ONGC Videsh Limited (OVL) and the president of NC KazMunayGas Bolat Akchulakov in the presence of the State Minister of Oil and Gas of India Shri Singh signed a tripartite agreement on the transfer of a 25 % interest in block Satpayev to the Indian company. It is expected that production will be commenced in 2020. The potential of the block's oil resources is estimated at 1.8 billion barrels, informs OVL. The government of India has approved a general plan for investments into Satpayev worth $400 million. This amount includes $80 million for a share in the block. The Satpayev site is located in the northern part of the Kazakhstan sector of the Caspian Sea at a distance of 90 km from the coast, 160 km from the port of Atyrau. The depth of water is 7-10 m. In June 2010, the exploration and production contract was concluded between the Ministry of Oil and Gas of the RК and KMG for the Satpayev site.
On October 13, Daniyar Berlibayev was appointed Managing Director for Gas Projects of JSC NC KazMunayGas. D. Berlibayev was born in 1968. He graduated from AlFarabi Kazakh National University and has great experience in the oil and gas industry. Over the years, he worked as Executive Director of Finance, Presidential Adviser on finances and economics, CJSC KazTransOil; First Vice-President, First Deputy General Director of JSC KazTransGas; First Deputy General Director of CJSC NC Oil and Gas Transportation; Managing Director, Corporate Development; Managing Director, Economics, Finance and Corporate Management of JSC NC KazMunayGas, general director of JSC KazMorTransFlot, General Director of JSC Intergas Central Asia; General Director of JSC KazMunayGas Processing & Marketing; General Director of JSC KazTransGas.
KazMunayTeniz has started the calculation of reserves at the oil and gas field Khazar, informed the company's general director Kenzhebek Ibrashev. "One of the promising projects in which we participate is Zhemchuzhina which will enter the stage of development second after Kashagan. The project is being implemented under PSA with participation of KazMunayTeniz, Shell and Oman Oil," said Ibrashev speaking at the VI Eurasian Energy Forum KAZENERGY in Astana. "The works were commenced on the assessment of Khazar's stocks, today we conduct works on the selection of the concept for construction of infrastructure facilities of the field Khazar," he added. "The site's oil and gas potential is estimated rather high in connection with the discovery of the fields Khazar and Аuezov. Today there are results on Khazar and Аuezov and we will continue the exploration on the structure Naryn and the assessment of Аuezov," added the head of KazMunayTeniz. According to K. Ibrashev, "the main priorities of partners in implementing this project is the conduct of all operations with a minimal environmental impact and the issues on local content. Besides, for receiving more efficient economic indices from the project, the participants aspire for the field's accelerated development." "We have commenced and in 2012 are planning to finish a selection of the concept for development of the Khazar field where a main point is the selection of the type of support foundation for placing the process and production facilities. The criterion will be a minimal environmental impact, an early term of commissioning and expenses," he concluded. The Khazar field is located in the northwest from the Buzachi peninsula in the west of Kazakhstan. It was discovered in 2007 by the exploration well Khazar-1, informs News-Kazakhstan Information Agency.
LUKOIL signed an agreement with banks on attracting a $500 million loan for a period of 5 years to finance an investment program and replenish a circulating capital of JSC Тurgai Petroleum (Kazakhstan). About it is said in the message of the Russian company. The involved loan consists of two tranches. The first tranche ($300 million) will come after signing of a credit agreement, the second ($200 million) under coordination with creditors will be chosen not later than 18 months from the date of signing the agreement. The credit's interest rate: LIBOR+2.85 %. The authorized organizer of the deal is the London division of the Bank of China. Large commercial banks will be engaged in syndicating the loan: BNP Paribas (Suisse), Citibank (Kazakhstan), Deutsche Bank and Raiffeisen Bank International. Financing is made on the conditions of no regression to shareholders, under provision of the export deliveries of oil to China. It is supposed that during the validity of credit agreement, Тurgai Petroleum will deliver about 2 million tons of oil to the Chinese market via the oil pipeline Atasu-Alashankou. The shareholders of Тurgai Petroleum on a parity basis are LUKOIL's subsidiary, LUKOIL Overseas, and PetroKazakhstan (CNPC 66.6 % and KazMunayGas 33.3 %). The enterprise is engaged in production of hydrocarbons from the Kumkol field located 200 km from the city of Kyzylorda. The proved recoverable reserves are estimated at 55 million tons of oil; production in 2010 comprised 2.94 million tons of oil and 174 million cubic meters of gas.
The head of the Kazakhstan national nuclear company Каzatomprom Vladimir Shkolnik made comments on the purchase of the Russian oil refinery Оrsknefteorgsyntez. The point is that a new owner of the oil refinery in the Orenburg region, which processed 5 million tons of oil in the last year, is the citizen of Kazakhstan Igor Vladimirovich Shkolnik. He is a final beneficiary of Cyprian Sermules Enterprises Limited which in June bought 92.2 % of ordinary shares in Оrsknefteorgsyntez from Russneft. The asset, according to Vedomosti Russian newspaper, will cost 7.8 billion roubles (about $280 million) to the buyer. According to information sources, on the question of journalists whether his son is a new owner of the oil refinery, V. Shkolnik recommended to ask his son about it. "I think that there is no policy here, everyone has the right to do business. If somebody in some country took a credit and bought an asset, it is his business. Ask my son, the son is already bigger than father," quoted V. Shkolnik the information agencies.
The Romanian subsidiary of JSC NC KazMunayGas, Rompetrol, started drilling of the first well in Romania. As informed Rompetrol Group's general director Saduakas Meraliyev, on the first block Satubari it is planned to start operations already in late October 2011. Drilling of the second block Fakshany can be commenced in May 2012. It is marked that if the first block Satubari will be developed together with the second partner, then the block Fakshany will be developed by the Kazakhstan oilmen independently. "For us it is more attractive Fakshany on which the forecasts, even in the Kazakhstan estimates, are quite good. The talk is so far about tens of million tons of oil," informed S. Meraliyev. Already 7 years ago KazMunayGas acquired a 100 % interest in Rompetrol Group the assets of which include two oil refineries in Romania, 7 own tank farms, as well as a branched network of gas stations not only in this country, but also in France, Spain, Moldova, Bulgaria and Georgia. KMG can deliver oil produced in Romania to its oil refinery Petromedia saving thus on transport expenses. According to S. Meraliyev, the project for modernization of this oil refinery is under completion. This will allow the plant to process by 100 % the Kazakhstan high sulfur oil, as well as oil of other grades, in particular, Urals. Upon completion of Petromedia's modernization, the plant's annual capacity will increase from 3.5 million to 5 million tons of oil. It will be fully own Kazakhstani oil delivered here by tankers via the Black Sea. Also, the main objective of the modernization project is that the Kazakhstan company can produce gasoline in Europe under Euro-5 standards, and by 2014 under Euro-6.
On October 20, the chief geologist of KMG EP Bazar Yeskozha has stated that the company plans to commence oil production in Northern Kazakhstan till 2020. "We think that till 2020 we should enter Northern Kazakhstan. This region remains out of geologists' attention, but it causes a big interest in terms of the presence here of the oil refinery of the parent company [the Pavlodar petrochemical plant]," he said by noticing that the company should make active its work in the southern regions of Kazakhstan. "The company should work in this region [South Тurgai] and not only in this region, but on the whole, in the south of Kazakhstan. These are new areas Syr-Darya, Shubarsu, Аral and the Aral region," he specified.
The company Max Petroleum has ompleted drilling of the exploration well ZLGS-1 on the site South Zhalgyz (Block A) in Kazakhstan. The depth of drilling has reached 1435 metres, however, as informs the company's press-service, commercially ttractive volumes of hydrocarbons on this well have not been revealed. Zhanros ZJ-20 rig will be dismanled and transported for drilling the ppraisal well KZIE-2 at the field East Kyzylzhar (Block E).
According to the data on November 8, the metering on the oil pipeline Kazakhstan-China in Аlashankou howed that over 40 million tons of oil were pumped via this oil pipeline o China, writes the Chinese information Internet centre. The total ength of the oil pipeline Kazakhtan-China is 2.8 thousand km; it is he first transnational energy coridor in China which connects the oil fields in Kazakhstan with the ontinental part of China. The first tage of the oil pipeline from Аtasu o Аlashankou was launched in ommercial operation in July 2006, while the first stage of the second tage in October 9, 2009.
KazMunayGas received a posiive conclusion on the feasibility tudy for modernization of the Pavodar Petrochemical Plant. The feaibility study was elaborated within n "Agreement on cooperation and mutual understanding under makng investments into industrial infratructure facilities in the Republic of Kazakhstan", signed between KMG nd Eni on November 5, 2009. The project is operated by KMG's Unit or Implementation of Projects with talian Eni led by the general direcor N. Balgimbayev. It is envisaged by the modernization project to ncrease the plant's annual capacty up to 7.5 million tons of crude oil with a depth of processing reaching 90 %, to increase the production of petroleum products and provide he quality of products meeting the Euro-5 environmental standard. It is planned to build five new units with two existing units to be reprofiled and eight reconstructed. Also, it is planned to build necessary common service facilities.
Tethys Petroleum Limited received an inflow of oil in the volume of over 4.3 thousand barrels a day from the appraisal well АКD06 at the Doris field, is underlined in the company's message. "Tethys informed that under approbation the oil was received with an inflow of over 4.3 thousand barrels of oil a day (bod) from the Cretaceous sandstone interval of the appraisal well АКD06 (Doris)," is indicated in the message published on KASE's website. The oil with the inflow of 4304 bod from a 5-metre interval (2165-2170) of the mentioned Cretaceous sandstones was received on the 26-millimeter choke under a dynamic wellhead pressure of 12.7 atmospheres. "The received oil is light and has density 0.8 (45 degrees under ANI classification). The inflow was restricted for safety reasons, however the data indicate that the absolute potential of opened inflow comprises over 6 000 bod," is marked in the information. At present, the well is connected to equipment within trial operation; it is planned further testing in addition to the transfer of well to the regime of long-term trial operation. Tethys Petroleum is engaged in exploration and development of oil and gas fields in Kazakhstan, Tajikistan and Uzbekistan. In Kazakhstan the company operates through its 100 % subsidiaries: TethysAralGaz and Kul-Bas LLP, under 4 contracts in the North Ustyurt basin to the west from the Aral Sea near the PreCaspian basin.
On November 22, North Caspian Оperating Company B.V. (NCОC), ConocoPhillips N Block B.V., JSC MNC KazMunayTeniz (КМТ) and Теngizchevroil (ТCО) signed performance specification (conditions of activity) on liquidation of emergency oil spills of the second level in Western Kazakhstan," is underlined in the joint press-release. "Today's event once again confirms our determination to take steps needed for protection and conservation of the Caspian Sea through further development and improvement of the consortium's existing reliable body on liquidation of emergency oil spills in cooperation with other oil companies in Western Kazakhstan," cites the press-service the NCOC's chairman and managing director Pierre Offan. According to the executive director of Kazenergy Association Aliakpar Matishev, the group on liquidation of emergency situations is being formed within the Association's coordination council on development of oil and gas operations at sea.
The Korean National Oil Corporation (KNOC) has declared that it discovered 11 million barrels of oil more on the Ada block in Kazakhstan, writes Bloomberg. Discovery has increased the reserves of the block being developed by LG International Corporation and Kazakhstan Vertom, up to 41 million barrels, informs the Agency referring to the South Korean oil company Anyang. The block in the northwest of Kazakhstan is at the stage of pilot production since July 2009 with a daily production level of 3.2 thousand barrels. The block's reserves can double after exploration which KNOC plans to conduct in the next year. KNOC's daily production from the fields came to 203 000 barrels in August. KNOC plans to increase production up to 300 000 barrels a day in 2012 and up to 600 000 barrels a day in 2019.
Karachaganak oil and gas condensate field is included in the list of fields to which the privilege is granted under the export customs duty on oil. Such decision was taken by the commission of the Customs Union. "Delovye Novosti" informs about it. The domestic field became the first in Kazakhstan included in this list. The export customs duty on oil exported outside the Russian Federation and the Customs Union's countries reaches almost $407 per ton, a preferential duty about $200. At present, the export customs duty on any oil exported from Kazakhstan is $40 per ton. No preferential rates of export duties on oil are present in Kazakhstan.