Kazakhstan reveals most attractive oil suppliers
Baku, Azerbaijan, Nov.6
By Elena Kosolapova - Trend:
Russia and Belarus are the most attractive oil suppliers for Kazakhstan, the press service of the Kazakh KazMunaiGas - Processing and Marketing Company, responsible for the management of the oil refining assets, exports of oil and petroleum products and the development of retail sales network of oil products in the country told Trend.
This attractiveness is related to the geographical closeness of a number of refineries in Russia to the borders of Kazakhstan, as well as the fact that the supply of oil products within the framework of the Customs Union, which includes Russia, Kazakhstan and Belarus, is made without the use of export customs duties, the company said.
"Deliveries of oil products from other countries are subject to export duties of the importing countries and the import duties in Kazakhstan," said the provided information. "The cost of such product will be substantially higher than the current market prices in the republic."
However, due to the temporary difficulties in the supply of oil products from Russia, in August KMG-Onimdery LLP (subsidiary of KazMunaiGas - Processing and Marketing JSC) became interested in acquiring AI-92 gasoline in Azerbaijan, the company said.
In accordance with the rules of the Samruk-Kazyna National Welfare Fund, which includes KMG-Onimdery, as well as organizations, over 50 percent of the voting shares of which are owned directly or indirectly by Samruk-Kazyna, the procurement of goods, work and services may only be carried out by means of a tender. Therefore, in accordance with the above mentioned rules, the KMG-Onimdery announced a tender on procurement of AI-92 gasoline. A contract for the supply of AI-92 gasoline produced in Azerbaijan in the amount of 6, 000 metric tons was concluded with the winner of the tender October 10.
A preliminary purchase of 3, 000 metric tons of oil has been carried out, the supply of which, under the terms of the contract, must be made before November 10.
It was previously reported that the contractor was an international company Lanturno Management SA.
However, this company at that moment didn't confirm its willingness to supply the agreed volumes of Azerbaijani oil products to Kazakhstan in connection with the introduction of temporary restrictions on exports of high-oil products from Azerbaijan, the Deputy General Director for Marketing of KazMunaiGas - Processing and Marketing JSC Erlan Koibagarov said last week.
"In case of default of the obligations, the contractor of our company will hold respective procedures for the termination of the contract and repayment of funds," he said.