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Kazakhstan's energy ministry to study president's proposal on associated gas: minister

Oil&Gas Materials 27 January 2010 17:18 (UTC +04:00)

Kazakhstan, Astana, January 27 / Trend , K.Konyrova/

Proposal by the President of Kazakhstan on the associated gas will be studied in detail, the minister of energy and mineral resources of Kazakhstan Sauat Minbayev told Trend on Jan. 26. "The question of transferring associated gas to the public property will be studied in detail, and a proposal will be made to the government," said Minbayev.
According to him, today, each user manages associated gas in the country in accordance with the approved program for utilization of associated gas. "Concrete program has been approved for each user, that is either to pump it into the reservoir, or produce electricity, or prepare and sell," the minister said.

Last Friday, regarding the issue of income from associated gas, the President of Kazakhstan Nursultan Nazarbayev recommended to study the experience of Azerbaijan. "Why must the associated gas be owned oil companies?". This has not been stipulated in the contract. They say that in Azerbaijan the issue has been resolved," said Nazarbayev on Friday, addressing the meeting in Ak-Orda, which summed up results of 2009.

According to the President of Kazakhstan, the associated gas is the state property. "The associated gas has no cost. The owner did not spend any money on its production," Nazarbayev said. The head of Kazakhstan ordered Prime Minister Karim Masimov to explore this issue, especially during concluding new contracts.

According to the PSA signed in 1994 to develop block of "Azeri-Chirag-Guneshli offshore oil fields, Azerbaijan state gets produced associated gas free of charge. In 2009, the Azerbaijani state without compensation obtained from the AIOC consortium engaged in development of Azeri-Chirag-Guneshli nearly four billion cubic meters of associated gas as compared to about two billion in 2008.

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