Oil Chronicles
Oil Chronicles. February 2025
February 2025
February 1, Farhat Abytov stepped down as Executive Director for the Oil and Gas Industry at the KazEnergy Association following his appointment as Deputy Chairman of the Management Board of National Geological Service JSC.
As of February 1, Kazakhstan increased export customs duties on oil and petroleum products (ECD) by 5.5% compared to January, reaching $77 per ton from $73. Previously, duties had been declining for five consecutive months. The peak duty level was recorded in September 2024 at $82 per ton.
The export duty for fuel oil is $30 per ton, for vacuum gasoil (VGO) at $60 per ton, while the export duty for liquefied petroleum gas (LPG) remains zero. The export duty for bitumen is 15 euros per ton from October 1 to May 31.
Ondasyn Urazalin, former Akim of the Aktobe Region, has been elected to the Board of Directors of KMK Munai.
The company produces hydrocarbons at the Kokzhide, Kumsai, and Mortuk fields in the Aktobe Region. A year ago, the Ministry of Ecology demanded the closure of wells drilled near the Kokzhide underground water field, including those operated by KMK Munai.
The company's founders are Yukon Energy Holding S.A. and Sinopec CNPC-Aktobemunaigas JSC. The Chairman of the Board of Directors is Chinese national Li Shufeng.
Kazakhstan’s CT-KZ certificates will be replaced by a unified register of domestic producers. In the first reading, the Mazhilis of Parliament approved a bill stating that the register will only include confirmation of domestic producer status. To be included in the register, entrepreneurs must apply digitally.
Production facilities will be evaluated in the second stage based on the number of technological operations performed. "The Ministry of Industry and Construction will oversee production evaluations and, in complex cases, will conduct on-site inspections," said MP Mukash Iskandirov, the bill’s initiator.
The Unified Register will come into effect in 2025, but a transition period will be in place until January 1, 2026, for existing CT-KZ and industrial certificates.
Starting February 3, the Shymkent Refinery suspended diesel fuel production due to instability in the diesel hydrotreating unit. The malfunction is being addressed, and a catalyst replacement is planned. During the repair work, unrefined fuel is being produced, which will later be brought to commercial quality.
No fuel shortages are expected in the southern regions, as supplies from the other two refineries cover market demand, and repairs are set to be completed by February 7.
Up to 80% of the additional revenue that fuel producers and sellers in Kazakhstan will receive following the lifting of state price regulation on gasoline and diesel fuel from February 1, 2025, is expected to be collected by the government in the form of higher excise taxes.
The country’s Ministry of National Economy has submitted a draft government resolution on introducing additional excise tax rates on fuels in the wake of price deregulation for discussion.
The additional excise taxes will apply to gasoline (excluding aviation fuel), diesel fuel, gasohol, benzanol, naphtha, light hydrocarbon mixtures, and eco-fuel.
"The document provides for setting an additional excise tax rate to channel 80% of the additional margin from fuel producers and sellers into the budget following the lifting of state price regulation on fuels," the ministry commented.
A tender announced by Silleno LLP for EPC services in the construction of a polyethylene plant in the Atyrau Region has two competing consortiums:
SINOPEC Engineering (China) with Tecnimont (Italy), and DL E&C Co (South Korea) with CC-7 (China).
The contract covers polymerization units and general plant infrastructure.
A two-reactor configuration has been selected for polymerization, with each reactor having a capacity of 625,000 tons per year.
These reactors will produce granulated polyethylene from ethylene through polymerization, which will be used for final product manufacturing.
The contract is expected to be awarded by the end of February.
February 10, KazMunayGas Chairman Askhat Khasenov held a meeting in Aktau on the implementation of the Kalamkas-Sea – Khazar offshore project.
The meeting covered the current status of work and tasks for 2025.
At present, project documentation is being developed.
Kalamkas-Khazar Operating LLP has been tasked with finalizing design work and selecting an EPC contractor to construct one of Kazakhstan’s largest and most technologically complex projects.
As part of local content development, offshore platform construction for the project will be carried out in Kazakhstan’s shipyards for the first time.
February 10, Shafkat Kudabayev was appointed Deputy Chairman of the Management Board of KazMunayGas.
He previously worked at the Ministry of State Revenues, serving as Head of the Tax Department for the Karaganda Region and Head of the Specialized Directorate of the State Revenues Committee.
He also served as Executive Director of the Fiscal Regulation Department at the KazEnergy Association. From 2022 to 2024, he was Director of the Subsoil Use Department at the Ministry of Energy.
He replaces professional lawyer Vasily Lavrenov in the position.
Daniyar Nasipov has been appointed Executive Director for Oil and Gas Industry Development at the KazEnergy Association.
He is an expert in digitalization of the oil and gas sector, automation of production processes, and strategic management with many years of experience in the oil and gas industry and IT sector.
Nasipov is the founder and head of AppStream LLP, a company developing technological solutions for industrial enterprises in digital transformation.
He is also co-founder and managing partner of the Analytical Center "Energia" (Exia.kz), established in cooperation with KazEnergy.
February 12, QazaqGaz Chairman of the Management Board Sanzhar Zharkeshov and Executive Chairman of the Board of Directors of PetroChina International Wu Junli signed an addendum to the three-year natural gas purchase and sale agreement in Astana.
"This step will allow an increase in gas exports to China in 2025, reaffirming the strategic partnership between Kazakhstan and China in the energy sector," the Kazakh national company said in a statement.
However, specific volumes were not disclosed.
Kazakhstan has an agreement to export 10 bln cubic meters of gas annually to China, signed in October 2023 in Beijing and valid until 2026.
However, Kazakhstan has failed to meet its obligations due to a shortage of commercial gas.
In 2023, Kazakhstan’s gas exports to China totaled 5.8 bln cubic meters, while the latest open data for 2024 covers January-August, showing exports of 2.3 bln cubic meters.
Former KazMunayGas Chairman Magzum Mirzagaliyev has been appointed Adviser to the president of Kazakhstan.
He previously held this position from January to April 2022.
Since he resigned from KazMunayGas in December 2023, he has served as Chairman of KazEnergy.
At the same time, former KazMunayGas Chairman Bolat Akchulakov has been relieved of his duties as Adviser to the Head of State and has become Chairman of KazEnergy.