Oil Chronicles
Oil Chronicles. January - February 2023
January 2023
January 11, Kazakhstan's Minister of Energy, Bolat Akchulakov, announced plans to supply 1.5 mln tons of oil to Germany via the Druzhba pipeline in 2023. KazTransOil JSC has received confirmation from the Russian Federation's Ministry of Energy to transport 300 thous. tons of Kazakstanih oil through Transneft's main pipeline system towards the Adamova Zastava oil delivery point for further supply to Germany in the first quarter of 2023. The oil transit will be carried out under an agreement between the governments of Kazakhstan and Russia dated June 7, 2002.
January 18, during the visit of the country's president, Kassym-Jomart Tokayev, to the United Arab Emirates, KazMunayGas and Abu Dhabi Ports signed a Strategic Partnership Agreement. The parties will establish a joint venture based at the Astana International Financial Center to provide maritime services for oil and gas projects in the Caspian Sea. Both parties intend to participate in the JV through their subsidiaries: Kazmortransflot and International Maritime Investments Ltd.
Together, they will create a fleet to support offshore projects in the Caspian Sea and a tanker fleet considering alternative export routes for Kazakhstani oil (through the Aktau port towards Azerbaijan).
Moreover, the JV partners will explore opportunities to create a trading fleet: constructing/purchasing container ferries (transiting from China to Europe via the Trans-Caspian route) and dry cargo ships for transport along the North-South route (Russia to Iran).
During President Tokayev's visit to the UAE, the Chairman of QazaqGaz, Sanzhar Zharkeshov, and the General Director of Dragon Oil, Ali Al Jarwan, signed a memorandum of understanding. This document will facilitate joint projects in the development of new gas fields and geological exploration in Kazakhstan.
Dragon Oil is an international oil and gas company, part of the Emirates National Oil Company group, engaged in gas and oil production in the Middle East, North Africa, and the Caspian region.
January 18, in St. Petersburg, following negotiations between a delegation led by Kazakhstan's First Deputy Prime Minister Roman Sklyar and a Gazprom delegation led by Chairman Alexey Miller, a Roadmap was signed. This roadmap outlines the main areas of cooperation, especially regarding the processing of Kazakhstani gas at the Orenburg Gas Processing Plant and the potential supply of Russian gas to Kazakhstan. They also discussed prospective cooperation projects involving QazaqGaz.
KazMunayGas has established a subsidiary, KMG Barlau LLP, by renaming its subsidiary N Operating Company LLP. The new company will conduct geological studies in the lesser-explored areas of Mangystau, West Kazakhstan, and Aktobe regions in Kazakhstan. This new KMG subsidiary will be based in Astana. The company is headed by Samat Bukanov, born in 1982, a native of Atyrau. He graduated from KazNTU named after K. Satpayev and has more than 15 years of experience in various positions within the KMG system.
Caspian Sunrise PLC, owner of the drilling platform Caspian Explorer, has won a tender for drilling a deep well in the Caspian Sea. The well is set to be drilled in the summer of 2024 to a projected depth of 2,500 meters. The company anticipates that the project will span roughly two months.
The charter rate is expected to exceed $150 thous. per day, while all mobilization and demobilization costs will be covered by Isatay Operating Company, a Kazakhstan-registered exploration firm.
January 20, the chairman of KMG, Magzum Mirzagaliyev, held an extensive meeting with leaders of subsidiary and affiliate organizations. The achievements of 2022, primary challenges, and plans for the near future were discussed, along with presentations from subsidiary leaders. The KMG head emphasized the company's long-term exploration strategy. Accordingly, for this year, the following were commissioned: conduct 3D seismic surveys at the Al-Farabi site; initiate drilling preparation at the Abay site for 2024; commence drilling at the Karaton Podsolic and Turgai Paleozoic sites; and kick off the project to study the geology of five new potential regional sites within primary oil and gas basins. Ozenmunaigaz has been tasked to expedite the works planned for 2023, focusing on the rehabilitation of the Uzen and Karamandybas fields.
A memorandum of understanding was signed between Uzbekneftegaz JSC and QazaqGaz JSC to collaboratively pursue projects aimed at advancing the oil and gas industry. A roadmap for expanded collaboration was developed based on this memorandum. Negotiations between the working groups of both sides were facilitated via video conference.
January 22, the Kazakhstan government extended the prohibition, initiated in July 2022, on exporting petroleum products by road transport for another six months. The Ministry of Energy explained that the retail prices for gasoline and diesel fuel are lower in Kazakhstan than in Russia, Uzbekistan, and Kyrgyzstan. This leads to high demand for fuels by transit transport drivers in border regions.
January 25, in Astana, the chairman of KMG, Magzum Mirzagaliyev, met with a delegation from the Italian firm Eni, led by the Exploration and Production Director, Luca Vignati.
KMG and Eni fundamentally agreed to jointly execute a project to build a hybrid power plant in the Mangistau region. The facility, powered by wind, solar, and gas (gas generator – for maneuvering, supporting power to stabilize energy supply), will have a capacity of 120 MW (wind and solar) and 120 MW (gas). The project aims to ensure full energy security for Ozenmunaigaz JSC and the Kazakhstani Refinery against power outages in the region. The project's implementation period is from 2023 to 2025, with an estimated budget of around $300 mln.
January 27, GPC Investment, under the trusteeship of QazaqGaz, conducted public hearings in the Makat District of the Atyrau Region. The meeting discussed the potential environmental impact as part of the adjustments to the Kashagan oil refinery construction project.
The project revision was driven by the results of a comprehensive audit of the design and budget documentation, addressing shortcomings of the previously approved document. Among the changes were optimized technological equipment, the inclusion of missing equipment, and the implementation of an automatic monitoring system for pollutant emissions at pollution sources and within the sanitary protection perimeter. The anticipated commissioning of the new plant is set for the end of 2025.
Information and Analytical Center of Oil and Gas limited company has been renamed to Situational-Analytical Center of the Fuel and Energy Complex of the Republic of Kazakhstan.