Kazakhstan failed to enter top ten world oil makers

In 2013 Kazakhstan failed to enter the top ten  world oil making countries, because of unsuccessful launching of the giant field Kashagan, but it managed to strengthen the oil industry with help of Chinese expansion, achieving a consensus with Moscow and the plans of the biggest maker Tengizchevroil, writes Reuters. 

Despite the inefficient regulation of the local oil products market, where updated by numerous rotations the government banned import of fuel from Russia, Kazakhstan ended the year without significant losses. The oil products manufacture has reached the initial plan of 5-10% growth of light oil products manufacture, exceeding the production of black oil. 

The oil production on the Kashagan field with the resources estimated at 30 billion barrels was suspended after the launch in September 2013, because of series of accidents showing that the infrastructure launched under pressure of the shareholders’ contract obligations was not ready.

As the companies did not receive profit from the promising and ambitious project, Kazakhstan’s oil companies had just a small growth in 2013 – up to 81.8 million tons (preliminary evaluation by the Analytical Centre of the Kazakhstan Ministry of Oil and Gas) from 79.2 million tons in 2012. The refining has increased insignificantly – from 14.2 million tons in 2012 up to 14.3 million tons.

Kazakhstan’s oil export has increased from 68.6 million tons in 2012 up to 72 million tons.

Tengizchevroil company has supported Kazakhstan’s declining production and announced growth of production on another big field Tengiz from 24 million tons in 2012 up to 26 million tons.

After long-lasting discussions with the Kazakh government Tengizchevroil has coordinated the conditions of the future expansion of production on the Tengiz field, which will ensure growth of production by 12 million tons in 2018.

Lack  of Kashagan oil has slowed down, but did not stop expansion of the biggest route for the Kazakhstan oil export to Europe – the Caspian Pipeline Consortium (CPC). Meanwhile, this year actual export via CPC, mainly Tengizchevroil’s oil,  will total about 32 million tons against 30.5 million tons last year. 

According to the estimates of the Kazakhstan Ministry of Oil and Gas, about 24% of the Kazakhstan oil falls to China. In summer Kazakhstan conceded 8.33% in the Kashagan project from 8.4% share of ConocoPhillips to the Chinese CNPC. Conoco Phillips has left the project.

Being in need of expanding the export routes, Kazakhstan again discusses expansion of the Kazakhstan-China pipeline Atasu-Alashankou from 14 up to 20 million tons a year  and in December 2013 Kaztransoil pipeline state monopoly built two more oil pumping stations to implement the project. 

Owing to stabilization of Russian import in 2013, the volume of deliveries via Atasu-Alashankou is expected to reach 11.8 million tons against 10.4 million tons last year. In 2012 China received about 2 million tons of oil less, because of the necessity to load the Pavlodar storage with additional Kazakhstan oil, reported http://www.nefttrans.ru.--0--