Development of Kashagan Field Postponed until 2013: Interview with Chairman of KazEnergy Association
Kazakhstan, Astana, 19 June / corr. Trend K. Konirova/ The excusive interview of Trend special correspondent in Astana with the chairman of KazEnergy Association Timur Kulibayev.
Question: What can you comment on the postponement of development of Kashagan field once again?
Answer: Additional technical measures are expected to be carried out to increase oil production in Kashagan field by 2013. The increase in the capital expenditures on the development of the field is being discussed today as it is very objective process with the price rise in all kind of goods and services. Kazakhstan has stated that the technological solutions offered by AGIP consortium KCO are reasonable. We accept these date - 2013.
Question: How much compensation Kazakhstan may demand in this case?
Answer: We discussed this issue as well. There will be no compensation as there were no violations by the contractor. Kashagan is technologically complicated and capital-intensive project.
Question: What can you say about the plans of Kazakhstan on Caucasus?
Answer: Kazakhstan plans to use capacity of Baku-Supsa as KazMunayKaz has obtained Batumi oil terminal. The oil production is rising in Kazakhstan. Today Kazakhstan is producing 70mln tons and it plans to produce up to 150mln tons a year by 2015 which requires new infrastructure and new export routes.
The construction of pipeline to China is being completed. It will reach its rated capacity - 20mln tons a year in 2009. We have Atirau-Samara pipeline. There are chances to expand Caspian Pipeline Company (CPC) up to 68mln tons which means additional 28mln tons. Of course we should promote Kazakh Caspian Transport System (KCTS) to join Baku-Tbilisi-Ceyhan (BTC) pipeline and cargo in the direction of the Black Sea through Azerbaijan and Georgia.
During the last visit of the Kazakh President Nursultan Nazarbayev to Atirau the construction of oil pipeline from Tangiz to Aktau port was initiated which will enable to transport additional volumes of oil which Tengiz-Shevroil plans to produce in 2009. At the same time Aktau is being expanded. I think that we will hold talks both with Azerbaijan and Georgia and the talks will be success.
Question: It is known that by canceling production share agreement, the government maintained PSA for such giants as Tengiz-Shevroil and Karachaganak...
Answer: Yes, Karachaganak is under the influence PSA and funds to the budget from this company make up $5bln a year. As PSA envisages compensation of expenditure of the contractor, it has been compensated; therefore large part of the income will be accumulated in the budget. Karachaganak is striking example to it.
As to Tengiz-Shevroil, there are tax triggers for this company which enables to increase income of the budget in case of rise of Tengiz-Shevroil income.