Caspian Sea "Black pearl" and local oil ambitions

On the press conference, organized by Kazakhstani Press Club on the KIOGE opening, he stated that drilling done by the company on geological structure called "Zhemchuzhina" (eng. pearl) was successful and they have got oil signs.

And however, as carefully stated KMG president, it is necessary to get time to still study the structure and proceed gotten data, it is possible to speak even now about new evidence ot Kazakhstani part of the Caspian shelf attractiveness from the hydrocarbon point of view.

As an evidence of the fact that the interest to Kazakhstan oil and gas extracting sphere is kept and even grows could serve an unexampled large quantity of KIOGE-2007 participants.

The conference participation could be explained from the point of view that business representatives and legal persons of the whole world intended to get Kashagan situation information at first hand. The exhibition participants are not so much involved in politics. This level of business-forum is rules by strict pragtmatism. And the fact that a number of participants grew by 10% says a lot.

On KIOGE-2007 as on previous 14 conferences officials again made public the county's plans on hydrocarbon extraction: expected oil extraction in 2010 will amount 75-80 million of tones, by the middle of next century- already 120-130 million of tones; crude gas extraction will grow by 2010 up to 40 billion of cubic meters, by 2015 - up to 70 billion.

Apart from the statements done on the previous conferences this sounded not only as ambitious plan but as demonstration of confidence in its realization.

It is not a secret that Kashagan project delay has given a lot of grounds for careful and even skeptic evaluations of it. Therefore to sound form such a high power tribune intentions to increase oil and gas extraction was a very important political step.

The RK Energy and Mineral resources Vice Minister, Lyazzat Kiinov, described Kazakhstani oil and gas sector resources base condition.

By now Kazakhstan has about 3,3% of world hydrocarbon reserves. Extracted oil amounts according to the most pessimistic evaluation total 4,8 billion of tones. Gas taking into account new fields on the Caspian shelf is calculated in more than 3 trillion of cubic meters. Its potential is valued in 6-8 trillion of cubic meters.

- By the last year Kazakhstan has extracted 65 million of tones of oil and gas condensate. Similar tendency in oil extracting sphere will be continued in 2007. For 9 months of 2007 oil and gas condensate extracted volume amounted 49,9 million of tones, export - 44 million of tones, processing - more than 9 million, - stated Lyazzat Kiinov.

It is obvious that for extraction intensification plans realization by 2010 it is necessary to install new capacities or intensify the work of existing. Kashagan is delayed: as it was mentioned on the conference, its development start most likely will start by the second half of 2010.

Where it is possible to find a growth of 10-15 million tones of oil to reach from today declared by 2010 75-80 million of oil tones? In the nearest perspective all expectations are connected to Tengiz oil field development.

Installation by "TengizShevroil" a second generation plant and a start of a gas pumping project on Tengiz will allow increasing extraction volume on the field up to 20 million of tones a year. Therefore not only Kashagan matters in plans of TOP-10 biggest oil extracting countries in Kazakhstan. However it is obvious that Kashagan, the largest shelf project, development delay it will be harder to achieve a plan.

His Royalty, Prince Andrew Albert, the Duke of York, the UK special representative on trade, mentioned in his speech on KIOGE:

- The news about Kashagan project expenditures rising and development delay is disappointing.

Afterwards British aristocrat criticized as well Kazakhstan for recent initiatives of the parliament to change bowels and subsurface usage legislation. The republic, according to what the prince has said, should think how it will influence its investment image in the world which is traditionally very good. However he at the same time confirmed that it will be hard to develop not only Kazakhstan without technological experience of western companies but for them as well without its resources.

One may count that by now Kazakhstan has more or less stalemate situations in relations with investors. The situation seems to be stocked, but the pause will not last for a long time. Once finished depending on a result of negotiations on Kashagan, it will be clear if Kazakhstan reaches its plans to enter the 'oil top".

Picture by http://news.bbc.co.uk