World’s leading oil companies strengthen cooperation with Kazakhstan
World oil giants are planning to increase cooperation with Kazakhstan. The Royal Dutch Shell follows this policy. The company is one of the Kashagan project participants. The parties believe that a co-production at the field will allow securing oil and gas production in Kazakhstan for many decades.
SEAN ROONEY, VICE PRESIDENT, ROYAL DUTCH SHELL:
We are very confident in the investment climate in Kazakhstan. And looking at more opportunities to grow both of those investments in the Kashagan and Karachaganak.
Meanwhile, oil production at the country’s largest Kashagan field next year will reach almost 9 million tons. The following years, the volumes will increase up to 13-16 million tons per year. Such forecasts were voiced by the Kazakh Deputy Energy Minister Magzum Myrzagaliev. In November, production at Kashagan has entered its commercial level. By the end of this year, production is projected to reach 1 million tons of oil and 680 million cubic meters of gas. According to the Vice Minister, Kazakhstan expects to gain profit not only from the sale of oil, but also from the associated revenues.
MAGZUM MIRZAGALIEV, KAZAKH VICE MINISTER OF ENERGY:
2017 will be characterized by stabilization of oil production. In the first six months we will extract oil in the amount of 120,000-140,000 barrels per day. In the second half-year, the production will reach 180,000 barrels per day.
In addition, the Chinese company intends to invest $3 billion in Kazakhstan’s largest oil deposit. KMG International and China’s CEFC signed an agreement on the transfer of 51% of shares. This deal is already considered to be a historic event. In the early 2000s, the national company KMG has acquired the refinery in Romania. Over the years, the enterprise has turned into a successful profitable asset that is already bearing its first dividends. After the completion of all legal procedures, China Energy Company Limited and Kazakhstan’s KMG International will run the business in Romania on a parity basis. Meanwhile, the domestic national company does not intend to curtail investment projects in Europe. On the contrary, after the infusion of the enormous funds, the company plans to massively expand its presence in the Black Sea region’s oil market.