Oil output with Chinese participation hits 20 mln tons in Kazakhstan

Oil&Gas Materials 30 March 2009 13:12 (UTC +04:00)

Kazakhstan, Astana, March 30 / Trend , K.Arinova/

Oil produced in Kazakhstan with Chinese participation hit roughly 20 million tons, the Kazakh Foreign Ministry told Trend .

"Some 20 million tons of oil are produced in Kazakhstan with the participation of Chinese companies. About 13 million tons account for the Chinese share," the office said.

Chinese companies such as the China National Petroleum Corporation (CNCP), SINOPEC and CITIC are involved in oil extraction in Kazakhstan.

China entered the Kazakh energy market after signing an intergovernmental agreement on oil-and-gas cooperation on Sept. 24, 1997, as well as a general agreement between the Kazakh Energy and Mineral Resources Ministry and CNCP to develop oil fields in Kazakhstan and construct an oil pipeline from Kazakhstan to China.

The agreements facilitated joint projects important for the economies of both countries.

During Chinese President Hu Jintao's visit to Kazakhstan in August 2008, an agreement was signed to expand the Atasu-Alashankou pipeline. The capacity of the pipeline will be increased from existing 10 to 20 million tons of oil. The pipeline will launch in 2009.

In December 2007, the parties began the construction of the Kenkiyak-Kumkol section.

Talks on constructing the Kazakhstan-China gas pipeline were completed.

The construction of the Kazakh section of the Turkmenistan-China pipeline began in July 2008.

The project will transport gas to China and diversify Kazakh export routes.

The PetroKazakhstan Refinery is a joint Kazakh-Chinese company.

Kazmunaygas represents Kazakhstan in the company.

In April 2004, CNCP bought the First International Oil Company, owning several blocks in the North Field. In December 2006, the corporation acquired Nations Energy, which is engaged in the development of the Karazhanbas field.

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