Astana, Kazakhstan, Feb. 13
by Daniyar Mukhtarov - Trend:
The national currency devaluation in Kazakhstan on Feb. 11 is not connected with the problems in the Kashagan field, Kazakh Minister of Oil and Gas Uzakbai Karabalin said at a briefing in Central Communication Service under the Kazakh president on Feb. 13.
"There is no connection between the adjusted tenge rate and the suspension of oil production in the Kashagan field," he said.
"Kazakhstan's projected revenue from the Kashagan field this year, will not be large enough to talk about its impact on the stability of the national currency," Karabalin added.
"The country's revenues will be small during the first year of the operations at the field," he added. "The main revenues received from the sale of Kashagan oil will be spent to repay the investments of investors. The remaining part will be divided among subsoil users and the republic, according to the contracts."
"I definitely want to say that Kashagan does not affect the revenue that the country expects from oil production in 2014," Karabalin added.
On Feb. 11, the Kazakh National Bank decided to abandon the maintenance of the exchange rate of the national currency - tenge at the same level, to reduce the volume of foreign exchange interventions and to reduce interference in the formation of the exchange rate of the tenge.
"The National Bank thinks that the new exchange rate will be at about 185 tenge per dollar," according to the statement.
Oil production at Kashagan started on September 11, 2013, but on Sept. 24 its operation was suspended after detection of a gas leak from the ground pipeline stretching from the Island D to the Bolashak plant.
Production was resumed, but again suspended on Oct. 9 after detection of a leak.
Hydro-testing was conducted, which identified other potential leaks.
Analyses revealed that the direct cause of pipeline leaks was cracking under the influence of sulfide compounds.
The official exchange rate is 155.5/$1 on Feb. 13.
Translated by NH
Edited by CN