...

Cut in Russian crude oil supplies to Kazakhstan to be solved through negotiations

Oil&Gas Materials 30 November 2011 13:42 (UTC +04:00)
Cut in Russian crude oil supplies from Russia to Kazakhstan will be discussed between the two countries, an informed source at the National Company KazMunayGas told Trend on condition of anonymity.

Kazakhstan, Astana, Nov. 30 /Trend K.Konirova /

Cut in Russian crude oil supplies from Russia to Kazakhstan will be discussed between the two countries, an informed source at the National Company KazMunayGas told Trend on condition of anonymity.

"The decision to reduce the volumes of crude oil from Russia to Kazakhstan will be discussed between the two countries. Seven million tons that comes from Russia to Kazakhstan, is a fixed amount officially approved on the intergovernmental level. Therefore, Kazakhstan is willing to discuss the decision to reduce the volume of deliveries," the source said in response to a question of Trend.

Russia took the decision to reduce the volume of crude oil and limited the volume of oil products deliveries to Kazakhstan since 2012, Minister of Oil and Gas Sauat Mynbayev said last Monday.

"The situation is difficult in 2012. We got quite a strong position of the Russian Federation, which urges instead of 7 million tons of oil in previous years and this year to supply 6 million tons in 2012," Mynbayev said at the selector government meeting past Monday.

Earlier, Minister of Oil and Gas Sauat Mynbayev said an agreement was achieved with Russia to continue crude oil supplies from Russia to Kazakhstan only by 2014.

The decision was explained by the fact that the Russian budget loses about $ 2 billion supplying crude oil to Kazakhstan.

Kazakhstan's depends on crude oil supply from Russia because one of the youngest refinery in the country - the Pavlodar Petrochemical Plant, built in the 1970s, was focused on refining oil from Western Siberia, Russia.

"About 5 million out of these 7 million goes to the Pavlodar Petrochemical Plant, 1.5 million tons to the Atyrau oil refinery, and the remaining volumes to the Shymkent refinery. And the deficiency of 1 million tones will affect the processed volumes of domestic plants, and petroleum products price, respectively," the source said.

Tolling operations are now proposed as a way out of this situation.

"It will be more logical to export our oil, refine it and import produced oil products back," Mynbayev said at a cabinet meeting.

According to Mynbayev, there are "nuances of taxes" in such operations. "I would like it to be thought in a fairly rapid pace and suggestions are made," the Minister concluded.

This issue will be discussed at the December meeting of the government.

Tags:
Latest

Latest