Prime Minister: Kazakh oil production in need of new technology
Kazakhstan, Astana, Jan. 29 / Trend D. Mukhtarov /
The issuance of licenses for subsoil use to investors after the lifting of the moratorium on subsoil use will be practiced provided by the transfer of technology, Prime Minister Serik Akhmetov told reporters.
"The head of state has made a decision on the issue of lifting the moratorium on subsoil use which will soon be announced. This decision will apply to all fields except the Caspian shelf. Attracting investments through issuance of licenses by the Ministry of Oil and Gas following the lifting of a moratorium on hydrocarbons should be carried out provided there is a transfer of technology. This will be a prerequisite for granting the right for subsoil use and there will be no other option," Akhmetov said.
According to him, the right for development of blocks will be considered only under the condition of attraction of new technologies.
"Currently, many deposits in Kazakhstan have reached the peak of their performance. It is necessary to implement production growth by attracting an extraction factor which requires the use of the latest technology. Investments must be made not only in the production of raw materials, but also in the conditions of supply of the most modern methods of oil production. That is, the raw material in exchange for the creation of new industries," the head of government said.
Akhmetov has urged foreign companies to get actively involved in the creation of production in Kazakhstan.
"The share of local content in the TCO is just over four per cent, in Karachagank - 7.5 per cent and in Kashagan three per cent. Those asked to build oil and gas equipment should pay special attention,"said Akhmetov.
According to him, three companies will have to establish production with acquisition of new technology in Kazakhstan and will soon be considered at the next meeting of the interdepartmental commission.
"We understand that the equipment that is put into the product in all oil and gas projects is produced abroad, but at the same time some industries could be established in Kazakhstan. The interdepartmental commission will soon consider three companies (Lukoil, Chevron and another one) which as an example will place new production with a transfer of technology," Akhmetov said.