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Kazakhstan plans to increase oil exports

Oil&Gas Materials 26 April 2017 20:56 (UTC +04:00)

Baku, Azerbaijan, Apr. 26

By Elena Kosolapova – Trend:

Kazakhstan plans to increase oil exports to 65 million tons in 2017, compared to 62.2 million tons in 2016, Satzhan Karimov, deputy director of the department of oil industry development of the Kazakh Energy Ministry.

He made the remarks during ‘The 2nd SOCAR International Caspian and Central Asia Downstream Forum – Trading, Logistics, Refining, Petrochemicals’, held in Baku Apr. 26.

He said that with the launch of oil production at the Kashagan field in autumn 2016, oil production in Kazakhstan will only grow. Kazakhstan plans that oil production in the country will grow to 81 million tons in 2017 and to 87 million tons in 2021, he added.

In 2016, production of oil and gas condensate in Kazakhstan amounted to 78.04 million tons, he noted.

Karimov went on to add that it is planned to gradually increase the volume of oil refining in Kazakhstan, and this will become possible due to ongoing modernization at all three Kazakh refineries.

He said that in 2017, oil refining is planned at the level of 14.5 million tons, as in 2016, adding that however, in 2019, oil refining will increase to 17.5 million tons.

Karimov noted that the refineries’ ongoing modernization, which will be fully completed in 2018, will make it possible to fully meet Kazakhstan’s domestic demand for fuel and lubricants until 2025, including light oil products, and even to start exporting fuel and lubricants.

The representative of the Kazakh Energy Ministry said that after 2025, given the growth in consumption of oil products, the possibility of building a fourth oil refinery and other options for ensuring domestic demand for oil products can be considered.

Kashagan located in the north part of the Kazakh sector of the Caspian Sea is one of the biggest oil fields opened in the last 40 years. Its recoverable oil reserves are assessed at 9-13 billion barrels.

Kazakhstan plans to produce 8.9 million tons of oil and 5.6 billion cubic meters of gas from this field in 2017. It is planned to increase production to 13 million tons of oil and 9 billion cubic meters of gas per year in subsequent years.

The project participants are KMG Kashagan BV (16.88 percent), AGIP Caspian Sea BV (nearly 16.81 percent), CNPC Kazakhstan BV (8.33 percent), Exxon Mobil Kazakhstan Inc. (nearly 16.81 percent), INPEX North Caspian Sea Ltd. (7.56 percent), Shell Kazakhstan Development BV (nearly 16.81 percent), and Total E&P Kazakhstan (nearly 16.81 percent). The field is operated by North Caspian Operating Company BV (NCOC).

Follow the author on Twitter: @E_Kosolapova

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