On June 3 Supplement №4 signed between the Ministry of Energy of the Republic of Kazakhstan (competent authority), KazMunayGas OC JSC and ONGS Videsh Limited company to Contract №3575 as of June 15, 2010 on the exploration and production of hydrocarbons in the Satpayev site, located in Kazakhstan sector of Caspian sea.
Kazakhstan is one of the largest oil producing countries in the world with a large part of the economy depending on the oil and gas industry, and 50% of the budget revenues is financed by the petroleum industry, which concentrates a considerable amount of manpower. However, for the third year we are witnessing the decline of oil production in the country. If the peak year of 2013 we produced 82 million tons, it is planned to produce 75-77 million tons this year.
Kazakhstan is currently not considering buying shares of BG Group plc in the Karachaganak project and thereby increasing its share in the project, the Ministry of Energy of Kazakhstan told Trend. "To date, no requests from the project participants on the issue of alienation of their participation in both the Karachaganak and other major projects have been reported to the Ministry," the Office said. Early April 2015 Royal Dutch Shell reported reaching an agreement on buying the BG Group for $70 billion. The parties expect the closing of the deal to take place at the beginning of 2016.
The first report meeting of the new energy Minister Kanat Bozumbayev with the Fuel and Energy Complex (FEC) Public Council was held on May 24th in Astana. During the meeting the Head of the Department spoke in detail about the work of the Ministry of Energy in 2015 and 1st quarter of the current year, and about the development plans for the Department’s three strategic directions. The press-service of the Ministry of Energy has provided the Petroleum journal run-down of the Minister’s report.
Nurlan Zhumagulov, Director General of the Union of Oilfield Service Companies of Kazakhstan, in an exclusive interview to the Petroleum: about when will the expansion projects at Tengiz and Karachaganak begin, whether there is a preponderance of the Russian companies in the industry and how can domestic oilfield services develop under the conditions of low oil prices.
The Ministry of Energy of the Republic of Kazakhstan has announces the annual data forthe oil and gas industry. Across almost all key indicators the industry showed a decline compared with 2014, primarily as a result of changed prices, as well as the delay in the launch of theKashagan Field.
Major oil companies in Kazakhstan still have profits,resulting from oil production, and the brownfield operators are already operating at a loss. The Deputy General Director of the Kazakh Institute of Oil and Gas Akbar Tukayev will explain the presentsituation in the industryduring a brief interview to KazTAG: whether the costs invested in Kashagan field will be recovered and should we expect the cost of gasoline to reduce.
We believe in long-term demand for oil and gas, and Kazakhstan will enhance its capabilities to ensure the energy security of the world. Of course, no industry in the world’s economy can avoid bumps and a wide variety of different factors. Negotiations and constructive team-work help to overcome them with minimal losses in least possible amount of time.
Vladimir Shkolnik, Minister of Energy of the Republic of Kazakhstan answers the questions of Petroleum magazine
Mr.Shkolnik, last year the world energy market faced truly tectonic changes, caused by falling prices of hydrocarbons. In turn, it affected the profitability of alternative energy, projects for the extraction of shale oil, etc. What changes are resulted in the plans of the Government of Kazakhstan in the energy area in connection with such a situation? What place takes currently the oil and gas industry in the system of energy security?
In early October, during KIOGE, the Deputy General Director of KazTransOil JSC Bulat Zakirov talked about importance of developing the transit potential of Kazakhstan. Kazakhstan-China pipeline operates successfully; CPC pipeline expansion is about to be completed; tankers cross the Caspian Sea -everything allows us thinking of new stage of developing the oil transportation system of the country. Mr.Zakirov answered the questions of Petroleum magazineon the sidelines of the Conference.
Marat Shaidollayevich, KPO company is one of the major investors in the Kazakhstani economy. Economic and social wellbeing of the Western Kazakhstan region directly depends on successful development of the project. How does the company feel under the circumstances of world oil prices decline?
In 2013, KAZENERGY Association decided to prepare a comprehensive document containing information about the current state and growth prospects of Kazakhstan’s oil and gas, coal, uranium, heat and electric power industries. The main goal was to obtain structured data that would provide a clear picture of the situation in the country’s fuel and energy sector (FES), examining the main issues facing the industries within the sector, determining priority measures that need to be taken to address these issues and offering long-term forecasts for the sector’s growth.
Since January 1 the Treaty on the Eurasian Economic Union (EEU) signed by Russia, Belarus and Kazakhstan has entered into force. Four key economic freedoms have begun operating on the territory of the Union: freedom of movement of goods, services, capital and work force.
Thirty ninelow-profitable oil and gas companies of Kazakhstan will soon get tax preferences from the government.
Let’s remind that on August 20 the National Bank of Kazakhstan has introduced a floating exchange rate of the tenge which resulted in the fall in the value of the national currency by 35%. Later, at the briefing at Central Communications Service of the RK the First Deputy Prime Minister Bakytzhan Sagintayev informed that till October 1 the total tax burden for low-profitable oil companies will be reduced. “In cooperation with KazEnergy Association we conducted in-depth analysis of all 57 oil and gas companies.
Kenzhebek Ibrashev, General Director of PSA LLP gives an exclusive interview to Petroleum magazine and tells how Kazakhstan protects its interests within the frameworks of the existing PSA
-Mr.Ibrashev, could you please tell us more about the activity of PSA LLP. What projects are supervised by this organisation? What are the mechanisms available for monitoring these projects?
October 9, Yerbolat Dossayev, Minister of National Economy, said at a briefing that the Government of Kazakhstan designed a scenario of economic in case of a slump in oil prices below $80 per barrel. “I have presented a socio-economic development forecast, the negative scenario is based on the 80 dollars per barrel. We have calculated some options in the event of further price declines,” Dossayev said. He reminded that Kazakhstan’s economy depended largely on the price of oil on world markets.