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Kazakhstan can start oil tolling operations with China in 2012

Oil&Gas Materials 4 October 2012 17:14 (UTC +04:00)
Kazakh oil companies can start oil supplies to China for tolling operations in the current year

Azerbaijan, Baku, Oct. 4 / Trend E. Kosolapova/

Kazakh oil companies can start oil supplies to China for tolling operations in the current year, Novosti-Kazakhstan reported with the reference to Kazakh Deputy Oil and Gas Minister Bulat Akchulakov.

Earlier Kazakhstan passed a law envisaging tax breaks. According to the law, the processing of crude oil abroad will be taxed as processing within the country. The new law is aimed at reducing the dependence of Kazakh domestic market on Russian fuel supplies.

"The amount of tolling operation will approximately equal to the volume of oil deficiency in Kazakhstan ... Oil processing is expected at 1-1.5 million tons, "Akchulakov said at the news conference at the International Conference on Oil and Gas KIOGE on Thursday.

Akchulakov said that tolling operations will reduce the deficit of gasoline, winter diesel fuel and jet fuel in the country.

"Currently we are considering Chinese refineries [for tolling operation]," Akchulakov said.
Meanwhile, producers who will supply oil for tolling and volumes of oil supplies have not been determined yet, Deputy Minister said.

Kazakhstan has three major oil refineries, which produce less fuel than the Kazakh domestic market needs. So, Kazakhstan imports some amounts of fuel, mainly from Russia.

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