To increase
Archive
#5 (101), October 2016
Exclusive
Prices Over the Long Term to be Driven by Market Supply and Demand
Cheryl Gomez-Smith, Managing Director of ExxonMobil Kazakhstan Inc., responds to questions of Petroleum
– Exxon Mobil Corporation, which came to Kazakhstan in 1993, is one of the first investors in our country. How would you describe the strategy of your сompany’s activities in Kazakhstan today given the changing situation in the global market?
The Oil Chronicles
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.
Megaprojects Will Not Save Us
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.
Projects
Tengizchevroil Announced Major Tengiz Expansion
On July 5, 2016, Chevron and our partners in the Tengizchevroil (TCO) joint venture have approved full funding for a major expansion of crude oil production for one of the company’s most valuable producing assets, the Tengiz Field in western Kazakhstan. The announcement of the Final Investment Decision (FID) took place in Astana, on July 5, 2016.
CPC Will Expand
Meeting of Nikolay Gorban – CEO Caspian Pipeline Consortium and Sauat Mynbayev - the Chairman of the Board of the National Company «KazMunaiGas» took place in Astana in the middle of September. Nikolay Gorban noted that CPC is ready to provide increase in through capacity of «Tengiz - Novorossiysk» oil pipeline fully and timely for oil acceptance from Kashagan field. CPC pipeline system – one of the largest investment projects in the energy sphere with participation of foreign capital in the territory of CIS.
Aday`s another attempt
This time they will search for oil in deeper layers.
Prospecting works may already be resumed in the next year at the Aday block in the Kazakhstani part of Caspian sea. «Ocean Petroleum» LLP will deal with the project.
Petrochemical Industry Needs a Road Map, Not the Projects
Petrochemical industry is one of the most important branches of the processing industry. We use its products nearly all the time. Four out of five items, surrounding us at any time, are created due to the petrochemical industry.
Technology
Asset Integrity
Designing systems with confidence for new and harsh environments.
Successfully implementing integrity management systems for decades.
Focusing on the fundamental science behind engineering decisions.
Social Responsibility
Contribution of KTO to Sustainable Development of Regions
Socially responsible business is always interested in the sustainable development of the regions. That’s why the largest national companies finance the objects of social purpose, in addition to their production programmes, investing in human capital, and in fact, in the future of the country. The oil transport company KazTransOil is well-known by such approach, since it is systematically implementing the social support programme for the long-term period.
Investments in Human Capital
The development of national economy in terms of economic and foreign policy challenges requires the consolidation and activation of all resources available from the state power. In prospect, integration of organizational, managerial, entrepreneurial resources will allow to form a long-term strategic program for innovative development of the economy of the Republic of Kazakhstan.
Presentation
``Made in Kazakhstan`` German-Quality Valves for Kazakhstan`s Oil& Gas Industry
Kazakh-German company Böhmer Armaturen LLP launched its production on July 2, 2014, during the teleconference with the participation of the President Nursultan Nazarbayev. On August 30 of the same year, the President personally visited the enterprise and he highly appreciated the lauch of the new facility. Since then, the Company has been developing dynamically, and over the past two years, it has reached the planned objectives.
KIOGE-2016. New Possibilities of the Crisis
In Almaty the 24th Kazakhstan International Oil and Gas Conference - KIOGE -2016 successfully completed its work.
The new conference format with an emphasis on practical sessions literally changed the atmosphere of the event, allowing the speakers and delegates to identify the problematic component of the industry’s daily work. The plenary session of KIOGE -2016 was devoted to the investment attractiveness of Kazakhstan’s oil and gas sector and the review of the medium-term market.
Legislation
The Subsurface Users will be Reimposed
The government has developed a new Tax and Custom code project.
According to Ministry of Energy of Kazakhstan 36 out of 60 oil producing companies of the country have closed 2015 Y with minus. Though the oil price situation has become better in comparison previous year, the sector which is appeared to be the main budget contributor and source of revenue to National fund, is needed in government support actions.
Foreign Legal Entities Engaging in the Licensed Subsoil Use Activities in Kazakhstan: Legal Opportunities vs. Practical Challenges
Following the general legislative trend towards improving the investment climate and creating favorable regulatory background for foreign businessmen, the licensing legislation has also been changing over the past several years. For instance, on 16 May 2014 Kazakhstan adopted its Law "On Permits and Notifications" (hereinafter, the Permit Law or the Law), putting it into effect starting 20 November 2014.