Oil Chronicles. October 2023
October 4, shareholders of Phystech II at an extraordinary general meeting decided to transfer voluntarily and gratuitously 100% of the company's voting shares, valued at 35.417 billion tenge (about $72 million), to the state as a gift. The main asset of Phystech II is the Karazhanbas North field in the Mangistau region, with reserves of 39.5 million barrels of oil.
The ultimate beneficiary of Phystech II is Kairat Boranbayev, related by marriage to Dariga, the daughter of Kazakhstan's first president Nursultan Nazarbayev (Boranbayev's daughter was married to her son Aisultan, who died under mysterious circumstances in 2020). In 2015, Boranbayev planned to sell 51% of Phystech II shares to the Malaysian CLIQ Energy for $117.3 million, but the deal ultimately did not materialize.
In September 2023, Boranbayev was sentenced to six years imprisonment with property confiscation for embezzling funds from the national company QazaqGaz and their legalization.
October 6, the Caspian Pipeline Consortium's oil pipeline system was put back into operation after a 72-hour planned shutdown.
During this period, scheduled work was carried out for regular technical maintenance of various pipeline systems, oil pumping stations, and the marine terminal. Also, measures were implemented for current and capital projects of the CPC, which can only be executed with the halted equipment of pumping stations and the oil pipeline.
Sanzhar Zharkeshov, the Chairman of the Board of QazaqGaz, and Khalid Bin Khalifa Al-Thani, General Director of Qatar Energy LNG, discussed prospects for cooperation in gas processing, petrochemistry, and joint implementation of projects involving compressed natural gas (CNG) and liquefied natural gas (LNG) in Kazakhstan.
October 7, a ceremony to initiate the transit of Russian gas through Kazakhstan to Uzbekistan via the "Central Asia - Center" main gas pipeline took place at the Novo-Ogaryovo residence near Moscow. The heads of three states participated in the ceremonial event: Kazakhstan's Kassym-Jomart Tokayev, Russia's Vladimir Putin, and Uzbekistan's Shavkat Mirziyoyev.
It is expected that Russia will supply Uzbek consumers with 2.8 billion cubic meters of gas. If necessary, part of the fuel will also be supplied to Kazakhstan.
Representatives from Mitsubishi Heavy Industries visited Astana, where they signed a memorandum of cooperation with the leadership of KMG Engineering.
The memorandum outlines opportunities for joint projects in the realm of 'blue' and 'green' hydrogen as a tool for KMG's decarbonization. The guests were presented with the activities of the alternative energy department and the laboratory for hydrogen technology research at KMG Engineering.
October 16 in Beijing, a memorandum of understanding was signed between KazMunayGas and China National Offshore Oil Corporation (CNOOC). The document was signed by KMG's Chairman of the Board, Magzum Mirzagaliyev, and CNOOC's Chairman of the Board, Wang Dongjin. The memorandum envisages conducting joint geological research on promising exploration projects, expanding cooperation on existing fields, and in oilfield services. This year, KMG presented several prospective projects to CNOOC, both offshore and onshore, including exploration projects and the regional project of the Caspian Sedimentary Basin.
October 17, a new contract for gas export between QazaqGaz and PetroChina International was signed at the "One Belt, One Road" summit, attended by Kazakhstan's President Kassym-Jomart Tokayev.
October 17 in Beijing, KazMunayGas, SIBUR, and Sinopec signed share purchase agreements for a stake in a polyethylene production project. KMG is selling a 20% stake in Silleno LLP (the project operator) to Sinopec, and SIBUR is also selling a 10% stake to Sinopec. Thus, the ownership structure of Silleno LLP will be: KMG – 40%, Sinopec – 30%, SIBUR – 30%.
The completion of all legal procedures for Sinopec's entry into the Polyethylene project is planned for the first quarter of 2024.
October 17, KMG's Chairman of the Board, Magzum Mirzagaliyev, and CITIC Resources' Chairman of the Board and CEO, Hao Weibao, signed a memorandum of understanding to promote the project to increase the capacity of the CASPI BITUM joint venture's plant to process 1.5 million tons of oil annually.