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Kazakh Karachaganak field expansion expected by 2018 0

Posted on December 13, 2015 by KazCham

Colibri Law Firm BI@colibrilaw.com

Kazakhstan’s Ministry of Energy expects that the investment decision on the expansion project of the Karachaganak oil and gas field will be made by 2018, said the Deputy Energy Minister Magzum Mirzagaliev. It is also expected that the design of the Karachaganak field will be completed by the same year.

Discovered in 1979, the Karachaganak field is one of the largest gas condensate fields in the world, and accounts for around 49% of Kazakhstan’s gas production and 18% of the country’s oil production.

OPEC downgrades forecast for Kazakhstan’s oil production 0

Posted on October 27, 2015 by KazCham

Colibri Law Firm

In its October oil market report OPEC has forecast that Kazakhstan’s oil production will decrease by 20,000 barrels per day in 2015 to an average of 1.62 million barrels per day. In contrast, OPEC predicted in its earlier September oil market report that Kazakhstan’s oil production would decrease by 10,000 barrels per day in 2015.

Moreover, OPEC revised a forecast for Kazakhstan’s oil production for 2016. In its October oil market report, OPEC projected that oil production in Kazakhstan will decline by 30,000 barrels per day to an average of 1.57 million barrels per day in 2016, an upward revision of 10,000 barrels per day from the previous month’s forecast.

The report also noted that different sources have said that Kazakhstan’s giant Kashagan project is unlikely to start production before mid-2017.

Kazakhstan mainly produces oil from its largest Karachaganak and Tengiz oil fields.

New investor is interested in Kazakhstan’s “Eurasia project” 0

Posted on January 20, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #100

The project is mainly aimed at exploring the deep geological structure of the region to discover new large deposits of hydrocarbons, as well as to define patterns of their bedding at large depths. The implementation of the Eurasia project will consist of three phases. The first phase envisages the collection and processing of materials from previous years. The second phase includes large-scale research. The last phase includes the drilling of a new support-parametric well called Caspian 1, at the depth of nearly 14-15 kilometers. The estimated cost of the three phases of the Eurasia project is about $ 500 million and the entire project will be taken up during the 2015-20 period.

Meanwhile Indian Oil and Natural Gas Corporation Videsh Limited (OVL) is closely studying the proposal to be part of the massive “Eurasia Project”.

According to officials in the Petroleum Ministry, OVL is looking deeply into the communication sent by the Indian Embassy in Astana about the new initiative and has advocated that OVL should closely look at being part of this project which posses a whopping 300 oil and gas fields in the basin including the super giant fields like Karachaganak, Tengiz and Kashagan in the territory of Kazakhstan.

 

Kazakhstan, Karachaganak partners yet to reach agreement – Mynbayev 0

Posted on October 13, 2011 by Alex

(SRI) – Kazakhstan is yet to reach an agreement on buying into the Karachaganak oil and gas project, and new negotiations on the planned third phase of its development will be necessary once a deal is reached, Kazakhstan’s Minister of Oil and Gas Sauat Mynbayev said on Thursday.

“The negotiations are ongoing. There are no specifics,” Mynbayev said on the sidelines of the KIOGE oil and gas conference in Almaty, the Kazakhstan-Novosti news agency reported.

On Wednesday, Timur Kulibayev, head of the state-owned holding and investment company Samruk-Kazyna, said Kazakhstan was willing to pay up to $1.1 billion for a 10% stake in the Karachaganak project.

Third phase

Mynbayev said the parties have not discussed the planned third phase of development of the oil and gas field, which is expected to significantly increase production. Talks will start only when an agreement is reached on Kazakhstan’s stake in the project, and an ongoing dispute over tax and environmental violations is settled.

However, Mynbayev warned that a previously proposed plan for the third phase of development was “outdated and not relevant today.”

According to reports, the two sides were not seeing eye to eye on the proposed cost of the expansion during earlier negotiations, and the Kazakh authorities urged KPO to reign in what they considered escalating costs. The consortium developing the Karachaganak field reportedly estimated the cost of the third phase of the project at $23 billion, while KazMunaiGas, the state-owned oil and gas company, said the cost could be as low as $14.5 billion.

The Karachaganak oil and gas deposit is being developed by Karachaganak Petroleum Operating (KPO), a joint venture between Eni and BG Group, both of which hold a 32.5% stake, Chevron, which owns 20%, and Lukoil, which has the remaining 15%. The 40-year Production Sharing Agreement (PSA) between the consortium and the Kazakh government to develop the Karachaganak contract area expires in 2037.

SOURCE: http://silkroadintelligencer.com/2011/10/07/kazakhstan-karachaganak-partners-yet-to-reach-agreement-mynbayev/

Kazakhstan Daily News Brief – October 7, 2011 0

Posted on October 06, 2011 by Alex

ENERGY:

Kazakhstan, Karachaganak partners yet to reach agreement – Mynbayev
(SRI) – Kazakhstan is yet to reach an agreement on buying into the Karachaganak oil and gas project, and new negotiations on the planned third phase of its development will be necessary once a deal is reached, Kazakhstan’s Minister of Oil and Gas Sauat Mynbayev said on Thursday.

Kazakhstan not ready to join EU-backed gas pipelines (SRI)

KazMunaiGas starts reserves audit (SRI)

Caspian oil shipments to fall amid work on CPC pipeline expansion (Reuters)

Max loses Kazakh tax appeal (Upstream Online)

Kazakh oil giant denies talks with striking workers (RFE/RL)

BUSINESS AND ECONOMY:

Kazkommertsbank receives $130 million to fund stalled construction projects (SRI)

Kazakhstan produces 23.8 million tonnes of grains to date (AgriMarket.Info)

Kazakh Ministry of Economic Development and Trade raises 2011 foreign trade forecast(Interfax)

Indicators – October 6, 2011 (Reuters)

POLITICS AND SECURITY:

Kazakhstan welcomes Putin’s Eurasian Union concept (Daily Telegraph)

SOCIETY:

Shrinking lake in Kazakhstan portends hard, dry times ahead (Washington Times)

SOURCE: http://silkroadintelligencer.com/2011/10/07/kazakhstan-daily-news-brief-october-7-2011/

Kazakhstan Daily News Brief – October 5, 2011 0

Posted on October 05, 2011 by Alex

Kazakhstan Daily News Roundup – September 8, 2011 0

Posted on September 08, 2011 by Alex

HEADLINES:

Kazakhstan to shun Morgan Stanley, Goldman Sachs in “people’s IPO” program
(SRI) – The National Bank of Kazakhstan will not allow investment banks Morgan Stanley and Goldman Sachs to bid on advisory contracts as the Kazakh government is moving forward to select banks to manage the individual listings of the so-called “people’s IPO”, Bloomberg reported on Wednesday.

Karachaganak dispute could be solved within a month – Kulibayev
(SRI) – Timur Kulibayev, head of the state-owned holding and investment company Samruk-Kazyna, said on Wednesday the Karachaganak oil field dispute could be resolved within one month, the Kazakhstan-Novosti news agency reported.

BUSINESS AND ECONOMY:

Central bank to buy up entire Kazakh gold output until 2014-15 (SRI)

Kazakhstan to add BRIC currencies to diversify its foreign reserves (SRI)

Egypt buys Kazakh wheat at tender (SRI)

On the move: Atameken Union (SRI)

Real estate transactions jump 15.2% in August (SRI)

Outflow of speculative capital from Kazakhstan reached $3 billion this summer – central bank(SRI)

RESMI Group sells Respublika Pension Fund to a group of private investors (SRI)

Kazakhstan to boost railway equipment manufacturing to KZT300 billion by 2015 (SRI)

Indicators – September 7, 2011 (Reuters)

POLITICS:

Kulibayev reiterates intention to stay clear of politics (SRI)

Playing language issue as a political card unacceptable – Nur Otan (Interfax)

Majilis deputy Alzakov demands urgent measures to tackle religious extremism (Interfax)

REGIONAL:

Tethys loses bid for Afghan oil blocks to Chinese state-owned oil company (Proactive Investors)

Global Insider: South Korea-Central Asia relations (World Politics review)

SOURCE: http://silkroadintelligencer.com/2011/09/08/kazakhstan-daily-news-roundup-september-8-2011/

Kazakhstan Daily News Roundup – August 12, 2011 0

Posted on August 12, 2011 by KazCham

Central Asian fuel crisis eases
(bne) – Russian gas deliveries to Kyrgyzstan and a cut in export duties for Tajikistan are bringing to an end the price hikes and fuel shortages that have crippled parts of Central Asia over the past few months.

Karachaganak partners and Kazakh government continuing dispute settlement negotiations(SRI)

Korea may offer stake in energy company in exchange for uranium access in Kazakhstan (SRI)

Oil and gas production up in Jan-July (SRI)

Uranium One jumps most in three years as quarterly profit climbs fivefold (Bloomberg)

BUSINESS AND ECONOMY:

KASE Index up and down in wake of global market volatility
(SRI) – Following the global trend, Kazakh stock market soared the most in two years on Wednesday on U.S. Federal Reserve pledges to keep interest rates near zero, only to give up much of the gains the following day.

Industrial production goes up 4.8% in Kazakhstan for Jan-July (Interfax)

Nazarbayev and Yanukovych discuss trading and economic cooperation (Interfax)

Ukraine’s PM offers Russia, Kazakhstan to coordinate grain policy (Interfax – Kyiv Post)

Fitch assigns Alliance Bank senior unsecured notes ‘RR4? recovery rating (SRI)

Indicators – August 11, 2011 (Reuters)

METALS AND MINING:

ENRC admits inquiry over audit allegations (The Telegraph)

Kazakhmys eyeing Central Asia for business expansion (Interfax)

POLITICS AND SECURITY:

U.S. and UK continue training of Kazakhstan military after Afghanistan rebuff (EurasiaNet)

SOCIETY:

U.S. rights body urges release of Kazakh lawyer
(Reuters) – The U.S.-based human rights body Freedom House has demanded the immediate release from prison of a Kazakh labor lawyer, saying trumped-up accusations were used to punish her for supporting striking oil workers.

REGIONAL:

China train maker signs $395-million contract with Turkmenistan (AFP)

Land seizures in China’s Kashgar fuel anger among Uighurs (Reuters)

SOURCE: http://silkroadintelligencer.com/2011/08/12/kazakhstan-daily-news-roundup-august-12-2011/

Kazakhstan Daily News Roundup – July 28, 2011 0

Posted on July 27, 2011 by KazCham

HEADLINES:

Under-mined in Central Asia
(bne) – Central Asia’s mineral resources remain under-developed given the region’s potential. And outside of Kazakhstan and Mongolia, international investment into exploration is minimal.

Karachaganak conflict to be resolved by end-2011 – BG Group executive
(SRI) – UK-based BG Group, a partner in the Western-led consortium developing the Karachaganak gas condensate field, is confident the venture will achieve resolution in a long-running dispute with the Kazakh government before the end of the year.

KMG EP cuts production forecast by 6% due to strikes
(SRI) – KazMunaiGas Exploration Production (KMG EP), the upstream subsidiary of the national oil and gas company, said the prolonged strike at the Uzenmunaigas production facility will cause the company’s total 2011 output to decrease by at least 6% compared to last year.

ENERGY:

Korean consortium begins construction of Zhambyl drilling rig (SRI)

Oil and Gas Ministry raises retail prices for gasoline (SRI)

BUSINESS AND ECONOMY:

Alliance appeals “excessively mild” sentencing of former owner, executives (SRI)

Eurasian Bank to list KZT3-billion bonds on KASE on July 28 (SRI)

Kazakhstan worried about competition from Russian and Ukrainian grain markets – Ministry of Agriculture (AgriMarket.Info)

Indicators – July 27, 2011 (Reuters)

METALS AND MINING:

KazakhGold completes reverse takeover of Polyus, changes name (SRI)

REGIONAL:

PetroChina further delays Dushanzi refinery maintenance -source (Reuters)

SOURCE: http://silkroadintelligencer.com/2011/07/28/kazakhstan-daily-news-roundup-july-28-2011/

 

Kazakhstan Daily News Roundup – June 20, 2011 0

Posted on June 20, 2011 by KazCham

HEADLINES:

Karachaganak dispute close to resolution – sources
(SRI) – Karachaganak Petroleum Operating (KPO), the Western-led consortium developing the Karachaganak gas condensate field, is close to reaching an agreement with the Kazakh government on ceding a stake in the project to Kazakh oil and gas company KazMunaiGas, Reuters reported last week.

Tengizchevroil to invest up to $20 billion in expansion project
(SRI) – Tengizchevroil (TCO), the Chevron-led joint venture developing the giant Tengiz onshore field, plans to invest up to $20 billion by 2016 to raise production by nearly 40%, Reuters reported on Thursday, citing a senior company official.

China and Kazakhstan: Flourishing strategic partnership strengthens economic development as new tiger economy emerges in Central Asia
(SRI) – On an official visit to Kazakhstan last week, China’s President Hu Jintao and his Kazakh counterpart Nursultan Nazarbayev signed agreements which will bring the economic and strategic partnership between the countries to “historic” new levels.

ENERGY:

KMG to explore oil block with Spanish Repsol (SRI)

BUSINESS AND ECONOMY:

Kazmortransflot to spend $800 million to upgrade fleet
(SRI) – Kazmortransflot, the maritime shipping arm of the state-owned oil and gas company KazMunaiGas, plans to spend about $800 million to upgrade its fleet over the next eight years.

OTP Bank considering expansion into Kazakhstan (SRI)

Indicators – June 17, 2011 (Reuters)

POLITICS:

Kazakh President’s ex-son-in-law charged with murder (Telegraph)

Murder rap in Rakhatgate – four years on (EurasiaNet)

REGIONAL:

On the Caspian shore, a tale of two Turkmenistans (Reuters)

Tajiks riot in football match with president’s son (AFP)

Tajikistan detains BBC reporter for ‘Islamist links’ (AFP)

SOURCE: http://silkroadintelligencer.com/2011/06/20/kazakhstan-daily-news-roundup-june-20-2011/



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