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Kazakh oil refinery through tolling operations scheme possible only in China: expert

Oil&Gas Materials 29 September 2009 17:33 (UTC +04:00)

Kazakhstan, Astana, Sept. 29 / Trend K. Konyrova /

The Kazakh oil refinery through the scheme of tolling operations is possible only in nearby China, but not in Russia, a source close in one of the Kazakh oil refinery plant (ORP) told Trend . The source was commenting on the Kazakh Competition Protection Agency's decision.

Earlier it was reported that the Kazakh Competition Protection Agency decided that the Kazakh Energy and Mineral Resources Ministry will examine the processing of the domestic crude oil in the ORPs in Russia and China.

"Refinery of local oil under the scheme of tolling operations at the plants of neighboring countries is possible. But it seems more real in the OPR located in Dushantszy, on the border with China," the source said.

The source explained that the scheme of tolling operations stipulates the following rules: oil supplier should pay to plant for the processing and transfer the produced oil products to the country, from where the supplier brought raw materials.

"After the completion of the Kenkiyak-Kumkol pipeline the oil from the country's western regions, including Tengiz, will be delivered directly to China, particularly, to a refinery in Dushanztsy for processing," the source added.

It will be much harder to resolve this issue with Russia's ORP for several reasons, the interlocutor added.

"First, we may transfer oil to Russia's ORP only through the Atyrau-Samara pipeline and the Samara group of ORPs has a lot of orders and secondly, the second ORP, CTC, does not have direct access to Russia's ORPs," the source said.

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