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Archive
#1 (91), February 2015
Exclusive
KAZENERGY’s Forecasts
Late last year, KAZENERGY Association published its National Energy Report-2013, which presented an analysis of the situation and of development prospects for the fuel and energy complex of Kazakhstan. According to the statement made by Asset Magauov, the General Director of the Association, the relevant ministries, scientific & research institutes, members of the Association and a number of consulting companies has been involved in Report preparation. The Report contains exclusive data, analyses and expert findings on the situation in the fuel and energy industry in Kazakhstan and abroad. According to Mr. Magauov, opinions of the World Energy Council, of the World Petroleum Council, as well as general global research and forecasts in the energy industry were taken into account in the preparation of the document.
Oil Price: How it Was and How it Will be
In 2009, at the height of the global financial crisis and the sharp drop in oil prices, a barely noticeable event occurred on the background of global turmoil that determined the current dramatic situation in the world oil market - oil production in the United States began its steady increase
Focus of the Issue
Oil Service Businesses Struggle for Budgets
Oil service companies in Kazakhstan are seriously concerned by the significant drop in world oil prices. According to the International Energy Agency, only in 2015, investment in the oil and gas industry on a worldwide scale reduces by minimum 15%. It appears that in Kazakhstan, the figure will be even greater. The National Company KazMunayGas has officially announced the updating the investment program. Other players in the industry also cut the budgets and reduce the volume of orders. Oil service companies have not reduced staff yet, but they are postponing the equipment purchases. In this situation, the Kazakh market players hope only for the future growth project at the Tengiz field.
Kazakhstan’s Petroleum Refining and Gas Chemical Project Overview
At the end of 2009, the Kazakhstan’s Government on the basis of industrial plans of the Map of Industrial development has established the Program of Accelerated Industrial and Innovative development of the Republic of Kazakhstan 2014, which has become one of the most important elements of the economic policy of the new decade. Several projects are being implemented within the program.
Technology
Environmentally Responsible Oil and Gas Development
ExxonMobil`s long-term commitment to environmental research develops the tools and expertise to provide energy in a environmentally sound way. Our research is focused on developing and integrating technologies and tools that enable responsible operations and make ExxonMobile the partner of choise, including in frontier and sensivitive areas.
Projects
The Perspective is Not Yet in Sight
At the end of last year, the Kazakhstan’s Ministry of Energy signed an agreement with the NCOC and companies engaged in the North Caspian Sea PSA, which settles a number of industrial, financial and environmental issues that had accumulated over the past few years. Neither party does not disclose details of the agreement referring to its confidentiality, but it is clear that the parties are actively searching for compromise in order to begin commercial production at the offshore Kashagan field as soon as possible, where Kazakhstan pins its hopes on increase oil production in coming years.
KPO Reports 2014 Performance
In 2014, KPO reached a record level of 142.5 million barrels of oil equivalent in production of stabilised and unstabilised liquid hydrocarbons, gas and fuel gas. In addition, 8,817.8 million cubic meters of sour dry gas were injected into the reservoir, a volume equivalent to approximately 48.3% of the total gas produced.
Presentation
Social Partnership is Guarantee of Success
Construction of social facilities by a consortium of foreign companies, working on development of Karachaganak field is stipulated by the General Agreement on Production Sharing, which regulates relationship between KPO and Kazakhstani party. Since 1998, 10 million USD are allocated annually for these purposes. In 2009, the Joint Committee on Karachaganak Project Management decided to increase this amount to 20 million USD. The spheres, designated for investing such considerable amounts are already determined. This is healthcare, education and infrastructure.
Legislation
Overview of Recent Significant Developments in the Civil Procedure Code of Kazakhstan
On 17 November 2014 significant modifications were introduced into the Republic of Kazakhstan Code of Civil Procedure (CPC). Although such changes have been widely discussed among practitioners within the context of the new Code of Civil Procedure, introduction of these novelties came as a surprise to most practitioners, even to some of the judges. Modification of the existing procedural law to reflect some of the novelties anticipated in the draft of the new CPC may indicate that the new Code is not likely to be adopted as soon as initially expected.