Mutual substitution of oil between Kazakhstan and Russia guarantees supplies to Pavlodar refinery

Mutual substitution of oil between Kazakhstan and Russia guarantees supplies to Pavlodar refinery

Kazakhstan, Astana, June 19 / Trend D. Mukhtarov /

A decision to supply Kazakh oil to Russia as a compensation for loss of the Russian budget from tax-free West Siberian oil supplies to Kazakhstan and in particular to the Pavlodar Petrochemical Plant (northern Kazakhstan), guarantees stability of supplies, Pavlodar Petrochemical Plant director general Shukhrat Danbai said today.

"The decision on a compensation for loss of the Russian budget from tax free Russian oil supplies to our plant guarantees the stability of these supplies," he told Trend today. "This is a concrete step that refiners appreciate. Earlier, our plant had a ragged schedule of raw material supplies from Russia by reducing the volumes two-fold."

Director General of the plant recalled that it will be shut down for scheduled maintenance in late June.

"A month after the repair, this issue will take concrete shape," he said. "We hope that the supply of raw materials to our company will be regular and stable with no disruptions."

On Tuesday morning, after a government meeting, Kazakh oil and gas minister Sauat Mynbayev told media that Kazakhstan will supply more than 1.5 million tons of crude oil to Russia as a compensation for loss of duty free Russian oil supplies to the Pavlodar Petrochemical Plant.

"The conditional loss of the Russian budget will be calculated for that range of petroleum products which will be imported from Russia to Kazakhstan," the minister said. "The volume of crude oil worth $1.5 million, maybe a little more will be supplied for this amount. Everything was calculated beginning in early 2012."

He stressed that an agreement was reached which will run until January 2014. The process is underway.

This situation is explained by the fact that the Pavlodar plant was built in the 1970s during the years of the Soviet Union. It is only one of three Kazakhstan refineries, technologically oriented on oil processing from the fields in Western Siberia. A question on of the supply of Russian raw materials to the Kazakh plant arose after the collapse of the Soviet Union and the creation of independent states.

Later it was resolved and an intergovernmental agreement signed. However, the problems with an established scheme of supply between Russia and Kazakhstan have recently occurred due to the expected change of government in Russia related to the election of a new president.

Russia cut oil supplies by half at the Pavlodar plant because Kazakhstan has not signed the methodology of calculation of export duties on oil and oil products within the Customs Union. Oil supplies to the Pavlodar plant in May amounted to 270,000 tons instead of 500,000 tons monthly.

Oil and Gas Minister Sauat Mynbayev told media earlier that Kazakhstan hopes to settle all disputes within the Customs Union with Russia after the new appointments in the Russian government.

Pavlodar Petrochemical Plant is the largest enterprise on oil refining, production and sale of petroleum products in Kazakhstan. It produces petrol, diesel, jet fuel, fuel oil, gas, oil bitumen, coke and sulphur.

The design capacity is 7.5 million tons per year. The depth of oil refining at the plant is about 85 per cent and is focused on West Siberian oil. Pavlodar Petrochemical Plant shareholders are Refinery Company RT (KazMunayGas Processing and Marketing's subsidiary) - 58 per cent of the shares and the Sovereign Wealth Fund Samruk-Kazyna - 42 per cent of the shares.

Kazakhstan to reduce flights on int'l routes to battle COVID-19 spreading
Kazakhstan to reduce flights on int'l routes to battle COVID-19 spreading
Passenger cars manufacturing volume surges in Kazakhstan
Passenger cars manufacturing volume surges in Kazakhstan
Kazakhstan's revenue from passenger transport by road down sharply
Kazakhstan's revenue from passenger transport by road down sharply
Loading Bars
Latest
Kyrgyzstan's 9M2020 import of carpets from Turkey shrinks
Update given on Armenian Armed Forces' equipment destroyed during hostilities
Refusing to fight, Armenian mercenaries desert en masse, Azerbaijani MoD says
Kazakhstan confirms 115 new COVID-19 cases
EU says had 'intense and constructive' meeting with UK on withdrawal pact
President Ilham Aliyev: Armenia demonstrated disrespect for mediators and its own commitments
President Ilham Aliyev: All the activities of Armenia's new leadership are aimed at disrupting the negotiations
U.S. and Brazil must reduce dependence on China imports, Pompeo says
Another armored vehicle of Armenian armed forces destroyed (VIDEO)
Argentina’s coronavirus case tally exceeds 1 mln
Israel reports 1,767 new COVID-19 cases, 304,876 in total
Intel nears deal to sell NAND unit to South Korea's SK Hynix
NASA mission to collect sample of asteroid Bennu
U.S. COVID-19 deaths top 220,000 -- Johns Hopkins University
UN Security Council discusses verification of Nagorno-Karabakh ceasefire
Turkey reports 2,026 new COVID-19 cases, 349,519 in total
Magnitude 7.5 quake strikes off Alaska's Aleutians: USGS
New U.S. COVID-19 cases rise 13% last week to nearly 400,000
Trump: U.S. to remove Sudan from state terrorism sponsors list after payment to victims
Belgium says COVID-19 situation serious as infections reach new highs, bars close
OPEC+ countries agree to honor commitments in full scope
Military trophies captured by Azerbaijani army in Jabrail and Fuzuli direction (VIDEO)
President of Italy-Azerbaijan Chamber of Commerce sends letter to Azerbaijani President, First Lady
Azerbaijani, French FMs hold phone conversation
Azerbaijani FM holds phone coversation with President of International Turkic Academy
Our losses sadden me most of all, what pleases me most of all is unbreakable will of Azerbaijani people - President Aliyev
Soros groups played big role in organizing coup in Armenia and Pashinyan always took an anti-Russian position - President Aliyev
Armenia wants to turn Tartar into Stalingrad, into the second Aghdam, Fuzuli, says Azerbaijani president
Turkey is already de facto at the negotiating table, says Azerbaijani president
Vast majority of villages around Fuzuli are with us, says Azerbaijani president
Now we see Fuzuli in front of us, says Azerbaijani president
After this ceasefire, Armenia tried to occupy settlement of Hadrut again and attacked it three times - President Aliyev
184 countries and economies have joined COVAX: WHO chief
Not single issue in region can be resolved without participation and consent of Turkey, says Azerbaijani president
We receive only moral and political support from Turkey, Pakistan and other fraternal countries - President Aliyev
There are people with Canadian and Lebanese passports among those who were killed on Armenian side, says Azerbaijani president
Armenian military equipment worth $1 billion destroyed with help of Turkish drones alone - President Aliyev
I have always tried to be true to my father's path, says Azerbaijani president
Liberation of Shusha occupies a special place among our goals - President Aliyev
Vast majority of villages around Fuzuli are with us - President Aliyev
Weapons are being smuggled to Armenia across Georgian and Russian territories, says Azerbaijani president
Armenia needed ceasefire in order to gather strength, take mobilization measures and launch new attacks on us, says Azerbaijani president
Dastardly attacks on civilians yet another manifestation of Armenian fascism - President Aliyev
Iranian Energy Exchange announces products to be on sale October 20
Iran ready to provide details of January plane crash to Ukraine
UK records another 18,804 new coronavirus cases with 80 deaths
Azerbaijan fully ensures safety of oil and gas projects of international importance
Azerbaijan to send note to German Foreign Ministry due to Bundestag members's visit to Karabakh
Launch of industry, mining projects to open new job spots in Iran
Armenian PM admits defeat and ready for talks with Azerbaijan on Karabakh
Appeal to be sent to relevant structures due to Armenia’s attacks on civilian population of Azerbaijan
Azerbaijan created conditions for Armenian war prisoners to contact their families
Colliers International: apartment buy/sell deals increasein Tbilisi
Georgia's Batumi sees decrease in real estate transactions
Turkish Trade Ministry says carpet exports to Russia rise
Supplies of Turkish carpets to Italy on decline
Azerbaijani armed forces adequately respond to Armenian side’s provocations
Update given on civilian casualties from Armenian shelling of Azerbaijan's Aghdam
Council of Europe Development Bank talks about projects implemented in Georgia
Dutch manufacturer of equipment for poultry farming eyes to enter Uzbek market
China's exports of flat-rolled products of non-alloy steel to Georgia down
Tesla to export China-made Model 3 vehicles to Europe
Demand for Turkish-made carpets in Kazakhstan up
Kazakhstan to reduce flights on int'l routes to battle COVID-19 spreading
Armenian armed forces shelling Azerbaijani settlements
Turkey records contraction in carpet export to Iran
IMF says economy of oil-exporting countries in Caucasus, Central Asia to decline
Export of Turkmen fabrics from synthetic complex yarns to EAEU increased
Russia hopes on quickly agreed mechanism for monitoring ceasefire in Karabakh - FM
This struggle is Azerbaijan’s just struggle - Speaker of Turkey's Grand National Assembly
Iran joins global program to pre-purchase Coronavirus vaccine
National Bank of Georgia sells funds at another foreign exchange auction
Georgia increases export of apples
Turkmengas re-opens tender for provision of laboratory testing services
Import of Turkish carpets by Israel drops marginally
Kazakhstan increases imports from Uzbekistan amid COVID-19
Azerbaijan must not leave Karabakh conflict to future generations - assistant to president
Azerbaijani army seizes more military equipment of Armenian armed forces on battlefield (PHOTO)
AzTV channel crew undergo fire from Armenian troops in Azerbaijan's Aghdam (VIDEO)
Iran’s Bahar Azadi gold coin price falling
USAID raises awareness of fruits and vegetables export from Central Asia
E5P, EBRD support Georgian transport sector
Qatar Airways expects to keep A380s parked for years
Georgian hazelnuts exports up as of October 18
Video instructions issued for foreign visitors crossing Azerbaijan's border
Iran declares value of mobile phone imports
Geostat reveals volume of Russian export to Georgia
Significantly lower prices needed to force OPEC+ cuts
Ten most COVID-impacted countries to cumulatively lose almost $700 billion in real GDP
Armenia grossly violates all laws – Azerbaijani major general
Armenia tries to mislead world community and evade responsibility - Israeli expert
Georgia reveals export statistics of major goods to Russia
Uzbekneftegaz to buy compressor via tender
Iran reveals its trade turnover with Arab countries
Armenia engaged in illegal economic activity in occupied Azerbaijani lands, top official says
Azerbaijani Prosecutor General's Office gives updates on civil casualties, damages
Azerbaijan's banking system has stabilized - MP
BP expresses support for Azerbaijani people in struggle for territorial integrity
It is impossible to find other countries elsewhere in world that would be so close to each other as Turkey and Azerbaijan - President Aliyev
Very good news comes from front every day - President Aliyev
All news