Situation is explained to foreign natural resources extractors

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13.10.2008
text: Samat Rakhimbayev , exclusively for Gazeta.kz
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While information agencies were informing of reduction of the world prices for oil, the Kazakhstani International exhibition and conference on oil and gas (KIOGE) which took part in Almaty didn't much worry of global prices reduction.

On the contrary, foreign companies and states representatives pointed to the importance of Kazakhstan for the world energy market and emphasized its great future. "Kazakhstan - is the world leader in energy resources," declared Steven Mann representative of the US state depratment to the applause.

Foreign participants of the conference were quite lavish to compliment Kazakhstan. So one could think that Kazakhstan continues to be an important partner in the sphere of oil and gas extraction for the external world. For instance, Alexandr Mikheyev, representing JSC "Gazprom" at the conference, declared that his company chiefs "are very glad to cooperate with Kazakhstan."

Many KIOGE participants were making speech in this style. But other colleagues didn't let the public "relax." For instance, one of the American participants suddenly asked vice-minister of energy and natural resources of Kazakhstan Lyazzat Kiinov: is it true that by 2015 in the republic it will be extracted 10 billion cubic metres of gas? From what gas fields?

"Before making and then announcing any decision, we count everything. Those figures, which we sound, these are estimations from the pessimistic perspective. It is a minimal volume, which we will get at our gas fields, but in general, I think it will be much more, Mr. Kiinov responded. He also added that every natural resources user is interested to show not big deposits, but then to get more. "oil developers understand this," he continued.

Big surplus of gas extraction is expected in Mangistau oblast, as well as from Kashagan, from which "we do not have anything yet." If all potential abilities are united, Kazakhstan will have additional 10 billion cubic metres for export in Russia and European countries and 5 more for supplies from the western regions of Kazakhstan to the southern oblasts. What will allow to carter the demands of the southern region and extra 1,5 - 2 billion to export to China on the same gas pipeline, which is being constructed at the moment.

Mr Kiinov also commented the information which appeared in some speeches at the conference that as if Kazakhstan every month has to get permission and quotas from Russia for the export of oil and gas through its territory.

"It does not correspond with reality. We are working otherwise: annually in October November we sign protocols additional to the intergovernmental agreement with Russian side, where we pointing to the certain volumes of supplies - what amount will go to Primorsk seaport, what amount to Novorossiysk, and what amount - to Ukraine and Byelorussia."

"We talk over every detail. I want to stress that for the last time the Russian side asks us to increase volumes of pumping oil on their pipeline system," vice-minister stated.

He also touched upon a troublesome topic of load of the Kazakhstani oil refineries, which decisions influence the prices on the internal market of oil products. Not in the single contract for natural resources usage there are no obligations by oil extracting companies, to deliver it to the internal, Kazakhstani market.

"Last year we extracted 67 million tons, and this year we will extract 70 million. And under such volumes we face the problem of finding 12 million tons for our oil refineries, to provide our economy with fuel. The problem is solved with the help of Russia - 6 million tons of its oil is delivered to the Kazakhstani oil refineries. And you consider it to be correct?" he addressed this question to the participants of the conference.

Petrol price growth is difficult to be explained to the population of the republic, because the country extracts five times more oil than its inner demands are.

"We had thought a lot how to regulate this problem, taking the fact that contracts conditions should not be altered. And we decided to introduce the duty. It is not a tax, that is it does not interfere with the contracts conditions.

"We will try to achieve the case when oil extractor will be both beneficial to supply oil for external and internal market. However, our refineries can not process more than 14,5 million tons. Therefore, still more enough oil will be supplied to the external market," Mr Kiinov stated.


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