The key topic of today's issue is the oil refining industry (existing) and petrochemistry (which we have been trying hard to create over the past decade).
What are we doing wrong? Why has Kazakhstan not become an exporter of petroleum products after an expensive program of modernization of domestic refineries? Will there be enough raw materials for gas chemistry in the country, and will we be able to compete with our neighbors Russia, China, and Uzbekistan in sales of manufactured products?
On June 9, the 34th plenary meeting of the Foreign Investors' Council was held in Nur-Sultan under the chairmanship of the President of Kazakhstan, Kassym-Jomart Tokayev. The event was attended by heads of major multinational companies operating in Kazakhstan, heads of government agencies, and representatives of international organizations. The meeting agenda included issues of decarbonization of the Kazakhstani economy and the introduction of low-carbon technologies.
Tengizchevroil LLP has officially notified that starting June 1, 2022, after almost 21 years of outstanding work and 12 years as General Manager of Policy, Government, and Public Affairs (PGPA), Rzabek Artygaliev has decided to take a well-deserved rest.
The national company KazMunayGas announced its operating results for the first quarter of this year. It is obvious that the activities of the national company were greatly influenced by the January events and their consequences and the changed geopolitical situation after the outbreak of hostilities in Ukraine.
For the petrochemical industry and oil refining, New Kazakhstan presented "justice" in the form of inspections of KazMunayGas and its subsidiaries by regional departments of economic investigations, the prosecutor's office, and tax authorities. Contractor companies that provided maintenance services for Kazakhstan refineries did not bypass the inspections either. The first heads of two Kazakhstani refineries, and several heads of structural divisions of these enterprises, were taken into custody.
This year, China National Petroleum Corporation (CNPC) is celebrating the 25th anniversary of its activities in Kazakhstan. It was with the arrival of CNPC in 1997 that large-scale and strategic cooperation between Kazakhstan and China in the oil and gas sector began. For a quarter of a century, the partnership has reached unprecedented proportions. The largest Chinese investor has invested about $50 billion in the development of Kazakhstan's oil and gas complex and paid taxes to budgets of various levels for about the same amount.
On April 20, the new Chairman of the Board of the National Company KazMunayGas Magzum Mirzagaliyev met with the General Director of Tatneft PJSC, Nail Maganov. It is Mirzagaliyev who will now have to develop joint petrochemical projects with a Russian company on the territory of Kazakhstan, the foundation of which was laid by his predecessor Alik Aidarbayev.
– Mr. Kozhanov, what is the current situation in the foreign direct investment market?
– This is probably one of the most frequently asked questions today, considering the socio-political events in January this year in Kazakhstan and the current geopolitical situation in the region.
"The fact that we still do not have petrochemicals and high–grade gas processing, as they say, is nonsense," said President of Kazakhstan Kassym-Jomart Tokayev, speaking on September 1, 2020, with a Message to the people of Kazakhstan. Words that accurately describe the current situation with high conversion rates in the oil and gas industry.
The details of the deal are disclosed in the publication of Gazeta.uz. The largest private oil and gas company Sanoat Energetika Guruhi (ex. Jizzakh Petroleum), became the buyer of the FOR. Jizzakh Petroleum). The transaction cost is $100 million. KPMG Valuation and Consulting acted as a consultant on privatization. The assessment was carried out by a company from Big4. Dentons provided additional legal support.
On April 7, 2022 Karachaganak Petroleum Operating B.V. (KPO) announced the successful completion of the new terminal of the international airport in Uralsk.
On the 28th of March the RoK Government signed a decree that the Uralsk International Airport shall be named after Manshuk Mametova, the Hero of the Soviet Union, born in WKO.
Chevron, as an international corporation, governed by the three-prong strategy, builds relationships with the local community everywhere it operates. The strategy is focused on creating opportunities for businesses, development of healthcare, education system and enhancing environmental awareness. As part of this strategy, Chevron actively supports human capital development in Kazakhstan, invests in education and support of talented youth, as well as in developing skills needed in a changing world.
The Tengiz project occupies a leading position among oil and gas operators in terms of the volume of purchased Kazakhstani goods, works and services.
The indicator of Kazakhstani Content (KC) in the project is steadily growing year by year: the total volume of purchases of goods, works and services by Tengizchevroil (TCO) in 2021 amounted to almost $5.2 billion, of which the share of local content is $3.6 billion. Thus, the share of local content reached 68% in 2021, the highest record figure since 2010!
A socially responsible business is a business that assumes additional voluntary obligations to society. In other words, it does not just produce high-quality products or fulfill the terms of a contract with an authorized body, pay taxes and salaries to employees on time, but also voluntarily invests in the region where it operates, its infrastructure, and the people, who live there. Ultimately, it invests in the future of the country.
On June 4, 2022, the annual charity mini-football tournament Elorda 2022 was held in the capital, at the Astana Arena stadium, in which 20 teams representing the country's oil and gas industry took part.
TCO environmental projects: rational use water resources, waste management, care for birds and seals
Along with a significant contribution to the economic development of the Republic of Kazakhstan, large oil and gas operators represent the interests of thousands of workers and directly take an active part in society's social and environmental development. Realizing the relevance and significant role of environmental protection in our lives, companies make their voluntary contribution to the practical development of environmental spheres of activity in the regions where they work.
On 13 May, 2022 Karachaganak Petroleum Operating B.V. (KPO), Tengizchevroil, LLP (TCO) and North Caspian Operating Company N.V (NCOC) took part in the joint “Forum on the development of oil & gas machine building in Kazakhstan” in Nur-Sultan.
The 19th North Caspian Regional Exhibition "Atyrau Oil&Gas" and 19th North Caspian Regional Exhibition of Construction "Atyrau Build" finished its work with the participation of 67 companies from Belarus, Kazakhstan, Netherlands, Russia, USA and Turkey. The exposition also included a national stand of the Export Support Center of Bashkortostan and a collective stand of the Yaroslavl region of Russian Federation. During the three days of the exhibition 2,347 profile visitors managed to visit, and 71% of the exhibitors have already reserved an area for 2023.
From May 24 to 27, the largest event of the year, the 30th-anniversary exhibition-forum "Gas. Oil. Technologies," took place at VDNKh-EKSPO Ufa.
Over the years, the exhibition has become one of the most significant events in the petrochemical sector of Russia. It is included in the business schedule of the heads of the largest companies in the industry.