Chinese companies' share in volume of production companies with KMG exceeds 15 percent

Oil&Gas Materials 7 May 2011 10:39 (UTC +04:00)

Kazakhstan, Astana, May 7 / Trend A.Maratov /

The Chinese companies' share in overall volume of the production companies with the participation of the National Company KazMunaiGaz (KMG) hit 15.4 percent in 2010, Deputy KMG Board Chairman Bolat Palymbetov told journalists.

"It is forecasted that the figure will be 11 percent in 2015 and 5 percent in 2020," Palymbetov said.

Based on the KMG's data, of the 11 oil companies with equity participation of the KMG, Chinese companies have partnership relations in five joint ventures. These are PetroKazakhstan KumkolResorsiz2 (67% -CNPC), Turgay Petroleum (335%- CNPC), Kazgermunai(33.5% -CNPC), Karazhanbasmunai (50% - CITIC) and Mangistaumunaigaz (50% -CNPC).

The number of Chinese workers in these production companies hits on average 1-3 percent.
Palymbetov said the origin of the investor - China, Russia or the U.S. is of secondary importance, since in any case, Kazakhstan's interests are protected through the mechanisms of licensing, taxation system, Oil and Gas Ministry's control system, other relevant government agencies and obligations in subsoil contracts.

KMG is Kazakhstan's national operator for exploration, production, refining and transportation of hydrocarbons. The company represents the state's interests in oil and gas industry in Kazakhstan. KMG's 100 percent shares belongs to the National Welfare Fund "SK".