The situation around the sale of the share of the American ConocoPhillips in the North-Caspian project (8.4%) is entangled more and more. As it was earlier declared that Kazakhstan will decide the fate of the share on 25 May 2013, the Minister of Oil and Gas of the Republic Mynbayev announced on May 22 that the date is being moved to the beginning of July. "The decision [of the State Commission - Petroleum] is from July 2," – Mynbayev told Reuters, without giving reasons for the delay.
Mr Bertrand Le Guern, chairman of the board of Petrolinvest SA, for the first time gives an interview to the Kazakhstan press. He tells Petroleum about the achievements and plans of the first Polish investor in the Kazakhstan’s oil and gas sector
The international consortium North Caspian Operating Company (NCOC), preparing to start commercial production at Kashagan, announced the second largest commercial discovery: at the Kalamkas-sea field. Press-service of the national company КаzMunayGas has officially confirmed this news 3 months later. As inform the sources, the time has been chosen not accidentally. Three companies from among the project participants have managed to reach an agreement on principles on forming a separate company to develop the field.
Evidently, it’s not an open secret that the authorized body in the person of the Ministry of Oil and Gas of the Republic of Kazakhstan controls a proportional parity of investors from among large geopolitical players. Moreover, possessing the right of veto, the Ministry has a possibility to regulate the presence of these or that countries in the Kazakhstan’s oil and gas industry.
ConocoPhillips, an American oil company which has ranked, under the 2012 results, 12th in the rating of Fortune Global 500, leaves the Kazakhstan market. On the eve of the new year, the company has declared about the sale of its share in the Kashagan consortium, and on January 25, 2013 has completed the deal on the sale to the national company KazMunayGasof a 24.5 % interest in the prospective offshore project N (Nursultan) in the southern part of the Caspian Sea.
The North-Caspian project has become this autumn a major newsmaker in the oil and gas industry. One of the main intrigues of KAZENERGY Forum held in early October in Astana was the question: whether production at Project No 1 for Kazakhstan – the giant Kashaganfielddiscovered 12 years ago on the Caspian Sea shelf – will start in the next year.
While specialists and mass-media are riveted by megaprojects such as Каshagan and Каrachaganak, small producing companies in the west of Kazakhstan have been increasing their potential in recent years, making competent investments and building their businesses. One such company is Maersk Oil Kazakhstan GmbH, branch of Danish Maersk Oil, which on December 1 will start commercial oil production from Phase II at the Dunga field near Аktau. Моrten Kelstrup, Managing Director of Maersk Oil Kazakhstan GmbH, shares the company’s components of success with Petroleum.
This is not yet mass flight of investors, but already is not a single refusal. The efforts of the Kazakhstan’s government on the development of riches of the Caspian Sea shelf do not yet bring desirable results: except for the large-scale Kashagan project the production from which is promised to start in March of the next year, other projects are skidded, while investors curtail their activity.
Possessing all necessary conditions, such as all-round support of the government, unprecedented tax privileges, a special economic zone (SEZ), accessible raw materials at a low cost and preferential credit financial resources from the state and from the banks of China and South Korea, the reanimated project for the construction of the gas chemical complex (GCC) on Northern Каrabatan again faces considerable difficulties.
One of the pillars of the State Program for Accelerated Industrial and Innovative Development being implemented in the republic by order of the head of state is the development of the Kazakhstani content in the industry. The experience of successful partnership of the national company KazTransOil with local suppliers of goods and services is numbering for many years.
New domestic gas pipeline will enable Kazakhstan to launc gas export to China and to install gas in the south of Kazakh stan as well. On August 1, 2012 Beineu-Shymkent Gas Pipeline LLP initiated fullscale installation of Beineu-BozoyShymkent main gas pipeline to link the gas-bearing regions in Western Kazakhstan to energy resource-hungry South Kazakhstan that imports gas from Uzbekistan.
Kazakhstan, which claims most of the Caspian shelf’s proven and estimated resources, is revising plans for its development. It has been two years since President Nursultan Nazarbayev signed a decree abolishing the failed 12-year state program to develop the Kazakhstan Sector of the Caspian Sea (KSCS), which began in 2003 (see “Missed Possibilities”, Petroleum, No. 2, April, 2011).
Sholpan Khaidargaliyeva, director of petrochemistry and technical regulation department of the Ministry of Oil and Gas of the RК, in an interview to Petroleum tells about the project for the construction of the integrated gas chemical complex in the Atyrau region
Why China? Companies from the Celestial Empire continue to press competitors on the market of equipment and service#4 (76), September 2012 special issue
The wind blowing through the mountain pipe of the Dzungarian Gates during the winter overthrows railway rolling stocks. The snow covers customs facilities up to the roofs. Beyond the range of the Tien Shan Mountains lies a vast country China. A tenuous thread – the Silk Road – hasn’t been torn in two thousand years.
At one of the key oil-fields in Kazakhstan, Tengiz, the shareholders of joint venture Tengizchevroil (TCO) are starting to implement a new large-scale project to expand extraction capacities - the Future Growth Project. It will allow the JV to increase production of hydrocarbons by more than 4 % in comparison to current indices.
Implementation of offshore projects in Northern Caspian (along with the North-Caspian project), geographically adjoining to the territory of the Atyrau region, remains on paper so far.