Archive special issue
#5 (83), October 2013A special issue devoted to KAZENERGY Eurasian Forum Astana
Minister of Oil and Gas of the Republic of Kazakhstan Uzakbai Karabalin gave exclusive interview to Petroleum magazine.
– Uzakbai Suleimenovich, first of all, let me congratulate you on your appointment as Minister for Oil and Gas of the Republic of Kazakhstan. You are an old friend and contributor to our magazine and we'd like to extend our special gratitude to you for agreeing to give this interview for readers of Petroleum.
Peter Costello, President & Asset General Manager BG Kazakhstan, answers the following questions for Petroleum
– Mr Costello, you have been appointed to the position of BG Kazakhstan President. Please, tell our readers a bit more about your previous roles.
Currently, the national company KazMunayGas is a vertically-integrated oil and gas producer performing the complete cyclical turnaround of operations ranging from exploration and production of hydrocarbons, their transportation and processing to rendering specialized services.
At the end of August 2013, the rating agency Standard & Poors published its assessment on the current financial and economic situation of Kazakhstan. However the most interesting part of this presentation was not about the economy, but more about the politics. The analysts of the Agency said "...the uncertainty is associated with the high centralization of the process of development and implementation of the political decisions and theconfusions regarding the transfer of presidential decision making power is depicting a high political risk.
Leading seismic capabilities for better outcomes across exploration, development and production
Kashagan. A huge hydrocarbon field in Kazakh part of the Caspian Sea. The unique project implemented by the international North Caspian Sea Consortium. On 11 September 2013 NCOC announced on behalf of the Consortium about the opening of the first well and production of the first barrels of oil.
Kazakhstan hopes to discover a new large oil and condensate field, which size is comparable to Tengiz field. However, not in the onshore, but offshore. As expected, the works in Makhambet site, located in the offshore of the Caspian Sea, performed by the Kazakhstan-Chinese company “Atyraumunaygaz”, will turn to be successful by 2014.
Managing the life of an oil field to ensure maximum recovery is both an art and a science. As production methods shift beyond the primary stages into the more complex improved and enhanced production phases, creative solutions which match the geology and reservoir are needed. This is where finding the right balance of ingredients such as experience, innovation and meticulous attention to detail can make or break the latter stages of a field’s productive lifespan. Get it wrong and valuable resources are trapped beyond economically viable recovery. Get it right, and everyone wins.
Manufacturing operations are underway at Chevron’s new Atyrau Valve Plant (AVP), a $40 million facility that is unique in Kazakhstan and other CIS countries. The valve plant is part of Chevron’s efforts to support the diversification of Kazakhstan’s economy by introducing new technologies and business opportunities to Kazakhstan.
History and Ownership
Tengiz, the world’s deepest producing super giant oil field, was discovered in 1979. The Tengizchevroil (TCO) partnership was formed on April 6, 1993, between the Republic of Kazakhstan and Chevron. Current partners are Chevron, 50 percent; KazMunaiGas, 20 percent; ExxonMobil Kazakhstan Ventures Inc., 25 percent; LukArco B.V., 5 percent.
Rolls-Royce today announced a $175 million contract to supply Asia Gas Pipeline LLP (AGP) with equipment and related services to power the flow of natural gas through Kazakhstan’s Line C Gas Pipeline, part of the vast 1,833km long Central Asia-China Gas Pipeline network.
Today employee training is still an issue of high importance for the oil and gas sector. It is a subject of permanent discussions among experts, top-managers of companies and representatives of special education institutions. Despite the fact that within the last few years oil and gas science has been extensively developed and close collaborations built with business entities there is still a considerable lack of professional engineers after the HR crisis which took place in 1990-s.
Aydan Karibzhanov is a well-known person in the oil world. Over the years he worked as the Director of Economic Affairs and Finances in JSC NC KazMunayGas, the Vice-Chairman of the Board in National Welfare Fund “Samruk-Kazyna”. Now he is the Chairman of Visor Holding’s Board of Directors. Recently he became a popular blogger as well. With kind permission from the author Petroleum publishes some precise and ironic notes of Aydan Karibzhanov.
Kazakhstan has adopted and, starting late May 2013, enacted the new Visa Issuance Rules (hereinafter, the Rules), which also affect the visa period of validity reduction and extension issues.
Situations where a contractor performs additional work under a construction contract occur often in practice. In such a situation various questions arise: Is the contractor obliged to perform additional work? Does he or she have the right to demand payment for it and how can he or she reduce the potential risks of not being paid? Let’s examine these questions