Kazakhstan Chamber of Commerce in the USA

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Kazakhstan to launch Kashagan oil production in November 0

Posted on October 06, 2016 by KazCham

Centil Law Firm BI@centil.law

Commercial oil production will begin at the giant Kashagan field in Kazakhstan in November. KazMunayGaz signed a contract last month with trader Vitol to arrange prepayment for its share in the Kashagan oil, worth $1 billion. Kashagan’s output will be a modest 50,000 to 1 million tonnes this year, 3 million to 5 million tonnes next year and then 7 million tonnes in 2018, according to Kazakh Energy Minister Kanat Bozumbayev.

KazMunaiGas plans to sell 50% of its interest in KMG Kashagan B.V 0

Posted on July 15, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #107

Kazakh national oil and gas company KazMunaiGas plans to sell 50% in KMG Kashagan B.V., an owner of 16.88% stake in the project to develop Kashagan super-field, to Samruk-Kazyna Kazakh National Welfare Fund.

The purchase price of the deal shall be determined based on an independent appraisal, and is expected to be reach as high as $4.7 billion. The selling transaction is to be fully executed before the end of 2015.

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.

 

Total SA (FP) expects Kashagan, a Caspian Sea oilfield in Kazakhstan waters, will start output imminently 0

Posted on September 11, 2013 by KazCham

Total SA (FP) expects Kashagan, a Caspian Sea oilfield in Kazakhstan waters, will start output imminently, according to Chief Executive Officer Christophe de Margerie. “We are very close,” de Margerie said in an interview at an employers’ group meeting. “We had hoped it would happen already but we had a few little last-minute problems.”

Kashagan, slated to produce as much as 370,000 barrels of oil a day, was due to start output by June, about eight years later than first planned and with costs nearing $46 billion, almost double early estimates. Exxon Mobil Corp., Royal Dutch Shell Plc, Eni SpA, Inpex Corp. and KazMunaiGaz also own stakes. Total is counting on the field to help meet production targets.

The high-pressure reservoir with lethal levels of hydrogen sulfide 70 kilometers (44 miles) from shore, is one of the world’s biggest finds of the past four decades. “We are optimistic now” about the startup of Kashagan, de Margerie said outside Paris. “It’s happening imminently.”

Business Intelligence from Colibri Law Firm: Issue #70

Kashagan’s big oil coming to market in mid-2013 -sources 0

Posted on August 14, 2012 by KazCham

By Reuters, August 10, 2012

Kazakhstan’s Kashagan oil field is set to make its first deliveries to markets in 2013 after years of delays, with large-scale exports expected from the middle of the year, industry sources told Reuters.

The start-up of the field, one of the world’s largest, has been delayed since 2005 due to cost overruns and disputes with authorities over taxes.

Production rates are initially expected to be very modest after the field starts operations at the end of this year or early next.

Some oil will flow through existing pipelines via Russia to Black Sea ports, some will be transported by Kazakhstan’s shipping firm Kazmortransflot via the Caspian Sea also for delivery to Black Sea or Mediterranean ports.

“Kazmortransflot is in discussion over a contract to ship oil from Kashagan in 2013… We are talking about 1-3 million tonnes out of the overall output of 3-7 million tonnes,” a shipping source told Reuters.

The consortium that controls the field is aiming to produce around 300,000 barrels per day in the initial test phase of operation at the field, eventually increasing to more than 1 million barrels per day in 2018-2019.

If the field reaches output of 7 million tonnes next year it would be equal to 140,000 bpd, enough to supply a mid-sized European refinery.

“They will start producing and stocking up oil, while exports are seen not earlier than June-July (2013),” the shipping source said.

The field is jointly controlled by state-run Kazmunaigas and six international oil companies. Kazmunaigas, Eni, ExxonMobil, Royal Dutch Shell and France’s Total own stakes of around 16.8 percent each.

ConocoPhillips owns 8.40 percent, and Japan’s Inpex 7.56 percent. Kazmunaigas entered the project in 2005 and later doubled its stake to 16.81 percent.

“In December there will be a ceremony to produce the first oil, but they will probably show the oil to the management and production will start in the middle of next year,” a Kazakh industry source said.

Kazakhstan, which holds 3 percent of the world’s recoverable oil reserves, plans to increase crude output by more than 20 percent to 100 million tonnes by 2015. Kashagan, discovered in 2000, will contribute much of this additional volume.

All the Kashagan shareholders are responsible for securing export routes for their crude.

“The main routes for Kashagan are likely to be CPC and BTC,” a Kazmunaigas source said referring to a pipeline via Russia and a pipeline from Azerbaijan to the Turkish Mediterranean coast.

Kashagan Expansion May Finish Earlier, KazMunaiGaz CEO Says 0

Posted on November 04, 2011 by Alex

Nariman Gizitdinov and Hellmuth Tromm, Bloomberg Business Week, Oct 26, 2011

Oct. 27 (Bloomberg) — Royal Dutch Shell Plc and other partners in the Kashagan venture may complete expansion as early as 2017, allowing Kazakhstan to reach its goal of becoming one of the world’s biggest oil exporters faster.

“If the partners will choose the field’s development conception by the end of this year or beginning of next year” and the government approves it, the expansion may be finished by 2017 or 2018, as much as a year earlier than the company previously estimated, said Bolat Akchulakov, chief executive officer of KazMunaiGaz National Co., a partner in the project.

The venture, which also includes Eni SpA, Exxon Mobil Corp. and Total SA, has invested $33 billion in the Caspian development, where the first oil is scheduled to flow by the end of 2012. Kazakh President Nursultan Nazarbayev, who visited the oilfield last month, said the expansion will help turn Kazakhstan into one of the world’s five largest oil exporters.

In 2008 the partners agreed to cede a larger share in Kashagan, one of the world’s biggest oil fields, to KazMunaiGaz and pay higher royalties after government criticism of cost overruns and delays in the first phase. The second phase has stalled because Kazakhstan isn’t satisfied with proposed costs, a person with knowledge of the matter said in June.

It will take 1 1/2 years to complete a detailed plan for the expansion, Akchulakov said in an interview in Astana on Oct. 25. The partners may then need about six months to make final investment decisions and another four years to carry out the project, he said. KazMunaiGaz said last year the expansion has been delayed to 2018 or 2019.

Frozen Waters

“Kashagan is a very complex field not only because it’s offshore, but also because it’s in shallow waters and its oil has a high level” of polluting hydrogen sulfide, Akchulakov said. Large-scale gas injection into the field will require more careful planning than was done earlier, he said.

Water at Kashagan is only 3 to 6 meters deep, and low salinity combined with shallow waters and winter temperatures below minus 30 degrees Celsius (minus 22 Fahrenheit) result in the northern Caspian Sea freezing for almost five months of the year, according to Kashagan’s website. Ice drifts and ice scouring put heavy constraints on construction and production, and call for novel technical solutions, it said.

The northern Caspian is also a sensitive environmental area, home to sturgeon, seals, and coastal wetlands that attract a variety of birds, it said. The crude oil it contains has a high ‘sour gas’ content, with 15 percent hydrogen sulfide, the operator said.

Output at Kashagan, which has already been delayed three times, will reach about 370,000 barrels a day during the first phase and rise to a 450,000 barrels a day by 2015 or 2016, Oil and Gas Minister Sauat Mynbayev said on Oct. 4. The original start date of 2005 was pushed back to 2008 and Eni later said production would begin in 2010.

“If the oil production at Kashagan will start in December next year reaching stable output there will take time,” Akchulakov said. He didn’t give a forecast for when stable oil output may be reached.

–Editors: Hellmuth Tromm, Alex Devine

To contact the reporters on this story: Nariman Gizitdinov in Almaty at ngizitdinov@bloomberg.net; Hellmuth Tromm in Berlin athtromm@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

 

SOURCE: http://www.kazakhembus.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=786&cntnt01origid=15&cntnt01returnid=201

 

 

 

Total reaffirms 2012 production start date at Kashagan 0

Posted on October 23, 2011 by Alex

Total reaffirms 2012 production start date at Kashagan Commercial production at the Kashagan oil field in Kazakhstan is expected to start in late 2012, Kazakhstan-Novosti reported, citing the deputy director of business development at Total E&P Russia, Maxim Marchenko.  Total is one of the seven oil companies developing the giant offshore project.

“At the end of 2012, we’ll launch initial production at 300,000 barrels per day at Kashagan,” Kazakhstan-Novosti quoted Marchenko as saying at an oil and gas conference in Moscow.  Last week, Umberto Carrara, the head of the Kashagan field’s operator in charge of the first phase, Agip KCO, reaffirmed the 2012 start date.

SOURCE: http://silkroadintelligencer.com/wp-content/files/srikznewsbrief_oct19_2011.pdf

Kazakhstan Daily News Brief – October 5, 2011 0

Posted on October 05, 2011 by Alex

Kazakhstan Daily News Roundup – October 3, 2011 0

Posted on October 03, 2011 by Alex

ENERGY:

Kashagan moving towards first oil 
(SRI) – The Western-led consortium developing the giant Kashagan oil field is working towards commissioning its facilities to launch commercial production in 2012, the Panorama business weekly reported on Friday.

BMB Munai announces cash dividend from Emir Oil deal (SRI)

Kazatomprom ups 2011 uranium output forecast (SRI)

Ukrainian companies interested in participating in hydrocarbon exploration and production projects in Kazakhstan (Interfax)

BUSINESS AND ECONOMY:

BTA makes $175-million payment on trade finance loan (SRI)

Ex-Im Bank lends $425 million to Kazakhstan’s railways (SRI)

Foreign debt rises by 5% in first half – central bank (SRI)

Tsesnabank to raise $37 million (SRI)

Asian Development Bank to provide local-currency financing to Kazakh SMEs (SRI)

Kazakhstan important link between China and Europe (Trend)

KazAviaSpektr to launch an agricultural plane plant in December in Karaganda (Interfax)

Indicators – September 30, 2011 (Reuters)

METALS AND MINING:

Kazakhmys begins share buyback program (SRI)

Fortis Mining granted halt pending Potash Salt Deposits geological report (Proactive Investors)

SOCIETY:

Top Kazakh Muslim cleric raps tough new religion law, warns of extremism (Reuters)

Kazakh strikers demand apology from president’s son-in-law (RFE/RL)

REGIONAL:

Moscow strives to clarify vision for Central Asian alliance (EurasiaNet)

In post-Soviet Central Asia, Russian takes a backseat (RFE/RL)

Obama, Uzbek leader discuss Afghan supply route (Reuters)

SOURCE: http://silkroadintelligencer.com/2011/10/03/kazakhstan-daily-news-roundup-october-3-2011/

Kazakhstan Daily News Roundup – September 20, 2011 0

Posted on September 20, 2011 by Alex

ENERGY:

Kashagan first oil production on track for 2012 – Nazarbayev
(SRI) – Kazakh President Nursultan Nazarbayev said on Friday that first oil from the Kashagan oil field will be produced by 2012 as planned.

BMB Munai completes sale of its production subsidiary to MIE Holdings
(SRI) – Kazakhstan-focused oil junior MBM Munai said on Monday it had completed the sale of its subsidiary Emir Oil LLP to China’s MIE Holdings Corporation after it secured all necessary regulatory approvals.

Kazakhstan raises export duty on petroleum products (SRI)

KAZENERGY Forum to be held in Astana on October 4-5 (SRI)

BUSINESS AND ECONOMY:

Kazakhstan to move ahead with IPO program despite global market turmoil
(SRI) – Kazakhstan will move ahead with its plans to sell shares in some of its largest companies to the public as part of the so-called people’s IPO, despite the current global market turmoil, Minister of Economic Development and Trade Kairat Kelimbetov said.

SH loses ?20-million Ablyazov account to Addleshaws (The Lawyer)

Indicators – September 19, 2011 (Reuters)

METALS AND MINING:

First Quantum says court upholds $2 billion Congo claim over ENRC (Reuters)

REGIONAL:

Customs Union paves way to rebuild old economic ties (The Moscow Times)

SOURCE: http://silkroadintelligencer.com/2011/09/20/kazakhstan-daily-news-roundup-september-20-2011/



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