Oil Chronicles
Oil Chronicles. May 2024
May

At the meeting of the Energy Council of the Republic of Kazakhstan, chaired by Prime Minister Olzhas Bektenov, the parameters of agreements between the national company QazaqGaz and the Qatari UCC Holding for the construction of gas industry infrastructure in Kazakhstan were approved.
Three projects were considered: the construction of two gas processing plants (GPP) with capacities of 1 bln cubic meters and 2.5 bln cubic meters per year for processing Kashagan gas, a new compressor station CS-14, the main gas pipeline "CS-14-Kostanay-Aktobe," and the second line of the main gas pipeline "Beineu-Bozoy-Shymkent."
From May 1 to 5, daily oil production at the Tengiz field fell by 25% from the average April level. According to Reuters, citing an industry source, production dropped to 473,900 barrels per day from 630,800 barrels per day. Earlier, the field operator, Tengizchevroil, announced a planned maintenance shutdown at Tengiz in May without specifying the exact dates. According to sources, the Caspian Pipeline Consortium has scheduled a reduction in CPC Blend oil exports in May to 4.9 mln tons from 5.4 mln tons in April due to the maintenance at Tengiz.
Alma Nsanbayeva has been appointed as the new General Director of Bolashak Group. Alma began her career at Embamunaigas and has worked on various international oil and gas projects. She joined the Bolashak Group in 2012 as the Director of Human Resources. She is also a certified coach, business trainer, and member of the presidium of the Union of Oil Service Companies of Kazakhstan. Bolashak Group is a leading provider of recruitment and personnel services for oil and gas companies in Kazakhstan.
May 8, the President of Kazakhstan issued a decree "On Measures to Liberalize the Economy." Among other things, it introduces a two-year moratorium on the creation of quasi-state sector entities, competitive selection of independent directors for subsidiaries of the Samruk-Kazyna Fund (including KazMunayGas and QazaqGaz), and a reduction of the quasi-state sector's share in the oil supply market to refineries, with equal and non-discriminatory access for private suppliers to oil processing and transportation services.
Additionally, until December 31, 2025, subsoil plots for which KazMunayGas and QazaqGaz have not exercised their priority right to obtain subsoil use rights through direct negotiations within three years will be auctioned electronically.
May 10, KazMunayGas and Bluewater Energy Services B.V. signed a cooperation agreement on future Single Point Mooring (SPM) projects. Under the signed document, Bluewater's technical experts intend to share international experience, including training Kazakh specialists in implementing SPM projects in the Caspian and Black Seas.
Starting May 17, the retail price of AI-92 and AI-93 gasoline for vehicles not registered in Kazakhstan and for non-resident drivers increased by 19.5% to 245 tenge per liter from 205 tenge per liter, the current price for all categories of drivers. The price of summer and interseason diesel fuel for foreign drivers will decrease 30% to 315 tenge per liter from 450 tenge per liter.
Retail fuel prices for Kazakh residents remain unchanged. According to the Ministry of Energy, this price differentiation will help maintain balance in the domestic market by minimizing fuel outflow to neighboring countries.
Kazakhstan, Uzbekistan, and Azerbaijan aim to become suppliers of "clean" wind energy to the European Union. The heads of the energy departments of the three countries signed an agreement on cooperation in developing "green" energy sources and transporting them to promising markets. An agreement was also signed to lay a high-voltage cable along the bottom of the Caspian Sea, allowing the supply of "clean" energy to the premium European market. The project's feasibility study (FS) has begun and is expected to last until the end of the year.
"We are talking about a significant volume of investments. We plan about 7 gigawatts of capacity, Uzbekistan up to 5 gigawatts. The entire wind potential of the Caspian zone and the Aral zone is planned to be used specifically for export supplies," emphasized the head of the Kazakh Ministry of Energy.
Samruk Business Academy signed an agreement with the Lithuanian construction company Alvora. At Alvora's request, SBA recruiters selected the first batch of 51 Kazakh welders and fitters, who were tested and assessed for practical skills with welding equipment in Astana. As a result, the employer selected 17 people, 15 of whom had worked on major oil and gas projects, including the Tengiz Future Growth Project, which is nearing completion. Two-year employment contracts were signed with the Kazakh workers, and they have now started working in Europe.
May 15, KazMunayGas General Director Magzum Mirzagaliyev resigned. Until the general meeting of shareholders scheduled for May 28, 2024, Aschat Hasenov, who previously held the position of Vice Minister of Energy, was appointed as the acting head of KMG.