KMG: Pavlodar Petrochemical Plant observes serious losses

Oil&Gas Materials 4 May 2011 17:05 (UTC +04:00)

Kazakhstan, Astana, May 4 / Trend A.Maratov /

The Pavlodar Petrochemical Plant (PPP) observes serious losses due to rising prices on raw materials, KazMunayGas CEO Kairgeldy Kabyldin said in an interview with Trend .

"The PPP faced a difficult situation because of rising world oil prices and rising prices for Russian oil. The cost of production become higher than sale prices," Kabyldin said.

Kazakhstan has three oil refineries, including the PPP, which technologically oriented on the processing of raw materials from oil fields in Western Siberia.

Current prices are significantly above the average price of Urals oil that was set in the Russian state budget for 2011 ($ 75 per barrel). The oil price increase has been observed since early 2011 on the background of unrests in the Middle East and North Africa.

"The plant faced a serious loss. If this situation continues, loss may amount to several hundred million dollars," Kabyldin said.

According to official figures, the plant's losses were $35-$40 million in early 2011.