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Oil Сhronicles
October, 2014
On October 1 , Nursultan Nazarbayev, Head of the State, visited the offshore metal structures plant, owned by Caspian Offshore & Marine Construction LLP, during his working trip to Mangystau region, - informs the press service of Akorda. During the visit, the President heard the reports about the enterprise activities and viewed the first jack-up rig in Kazakhstan, which is being raised for KMG Drilling & Services LLP. The plant of Caspian Offshore & Marine Construction LLP is engaged in assembly and construction of the equipments, industrial units for the oil and gas industry, shipbuilding, as well as the repair and maintenance works.
All the expenses for the resumption of oil production at Kashagan field will be carried by the Contractor, informs Uzakbai Karabalin, First Deputy Minister of Energy while visiting Atyrau. "All the costs are not recoverable, they are related to the resumed production, including the replacement of almost 200 km long pipelines, from Kashagan field to the shore. The Contractor shall finance these works with own funds. It results from the sanctions under the Kashagan PSA, stipulated for the party, breaking the terms of commercial oil production. If after October 1, 2013, the Contractor fails to ensure the well-timed commercial production, all the further works to achieve the commercial production will become the non-recoverable costs. Therefore, all the works currently in progress are non-recoverable", - Mr.Karabalin informed. We recall, that the oil production at Kashagan, got underway in autumn 2013, has been suspended. The reason was specified as cracking of pipes, through which oil and gas should flow from the offshore field to Bolashak unit. According to preliminary information, it’s not until the late 2016 that the production will be resumed.
The fourth OR (oil refinery) will not be built in Kazakhstan. It will be replaced by an expansion of the Shymkent refinery. "The Government of the RoK is authorized to solve issues about the placement, sources of investments and period of construction of the fourth oil refinery. The further phased expansion of the Shymkent OR (which originally was designed with the possibility of upgrading to achieve processing 12 million tons of oil per year), as growth of requirements in the domestic market, is the rational solution in these circumstances”, - said the press service of the Ministry of Energy of the RoK. It is mentioned in the notice that the expansion from the current 6 million tons to only 3 million after 2024 can already meet the requirements of Kazakhstan in clean oil products until 2035. At the same time the Ministry recalled that technical upgrade of all existing OR currently is in progress, and the completion date is 2016.
The head of the State, Nursultan Nazarbayev, held a meeting with members of the Chevron Board of Directors. During the meeting, implementation of joint projects in the oil and gas sector was considered, as well as participation of the company in implementation of the State Program for Industrial-Innovative Development of Kazakhstan.
The Government of Kazakhstan has approved the expansion of production project of Tengizchevroil LLP (TCO), the largest oil producing enterprise, in spite of possibly higher than expected costs, said Vladimir Shkolnik, the Energy Minister. "In general, the expansion of production project was approved. It was originally planned that the estimated costs will run at 23 billion USD, but our partners provided much more amount, about 40 billion USD, due to some circumstances... We will stand up for and check every figure. The final amount is still under discussion and may be lower", - said Skolnick, whose words cite Reuters agency. As the Minister stated, the increase in expenditure is associated with the appreciation of some services, pipes and different equipment.
On October 14, Bakytzhan Sagintayev, the first Deputy Prime Minister of the ROK stated that the Government of Kazakhstan reconsiders the budget due to falling oil prices. "The Government is reviewing the budget taking into account that the oil could fall to $80 a barrel," - Sagintayev said to journalists on II Almaty International Investment Forum.
OnOctober 21, single-engine aeroplane crashed at Vnukovo, Moscow airport, and Total Christophe de Margerie, the President of the oil company was among the victims. He was 63 years old. All four fatalities: three crew members were together with Total on aircraft board. A criminal investigation has been launched into the occurrence under article "Violation of the Rules for Traffic Safety and Operation of the Air Transport entailing by negligence the death of two or more persons".
On October 30 , the meeting with potential investors accomplished within the scope of execution of the Comprehensive plan of privatization for 2014-2016 in NC KazMunaiGas JSC, with the participation of the Fund's management of Samruk-Kazyna, representatives of the subsidiary and dependent organizations. "Within the scope of execution of the head of State orders, the Government of Kazakhstan jointly with Samruk-Kazyna JSC have developed the Comprehensive plan of privatization for 2014-2016. Directly in KMG over the period 2014 to 2020, it is targeted to privatize 27 companies, 7 of which are planned to bring in the private sector to the end of this year”, - the notice of the national company said. In 2014, it is planned the implementation of the following KMG subsidiaries and dependent organizations: National Maritime Shipping Company Kazmortransflot (KMTF) LLP, Euro-Asia Air JSC, Kazakh Institute of Oil and Gas JSC, Kazakh-British Technical University, and also companies in Romania: Palplast S.A., Rominserv Valvesiafo SRL, Global Security Sistem S.A.
Kairat Sharipbaev is appointed as CEO of JSC KazTransGas Previously, he was the General Director of JSC KazTransGasAymak
Kairat Sharipbaev was born on August 16, 1963 in Akterek village, Zhambyl district, Almaty region. He graduated from the Kazakh Agricultural Institute (1985) with speciality in Agricultural Science and Abai Almaty State University (1999) with speciality in Economics.Ph.d. in Political Science, dissertation name: "Local self-government in the Republic of Kazakhstan: Social, Political and Economic aspects" (2002). He started his career as an agronomist in a state farm, then he worked at the regional station of plant protection and as a storekeeper of the vegetable storage. Later he occupied the position of CEO in Koktem LLP, Zhetysu LLP (1993-1999); Deputy Akim of Taraz (1999-2000); First Vice-President of CJSC Dauir, President of Kitap Publishing House (2001-2002). In 2002-2003 he worked as a Director at the Department of Transportation and Marketing, Deputy General Director on Marketing and Commerce at JSC Intergas Central Asia; in 2005-2006- he was an Advisor to the First Vice-President, Managing Director for Commerce at JSC NC Kazakhstan Temir Zholy; in 2006-2009- Chairman of the Board at JSC Danko. From 01.2009- Director General of JSC KazTransGas Aymak.
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