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Russian oil supplies to Pavlodar plant in Kazakhstan increase

Oil&Gas Materials 9 October 2012 17:11 (UTC +04:00)

Kazakhstan, Astana, Oct. 9 /Trend D.Mukhtarov/

Some 5.2 million tons of Russian oil will be supplied to the Pavlodar oil and chemistry plant for processing next year, General Director Shukhrat Danbay noted on Tuesday.

"Some 5.2 million tons of Russian oil will be supplied to Pavlodar oil and chemistry plant for processing nex year. This year this indicator is going to amount to 5 million tons," Danbay stated.

In his words, 2 of 7 million tons, which are supplied to Kazakhstan by RF, will be supplied to Shimkent oil and chemistry plant, 5 million tons will be processed by Pavlodar plant.

Previously reported, intervals in supplies of Russian oil to Kazakhstan started this year, which affected work of Pavlodar oil and chemistry plant, technically oriented for processing of raw materials from Western Siberia fields.

The reason to this situation is loss of Russian budget due to duty-free supplies of oil to Kazakhstan in volume of 7 million tons a year, according to previously signed international agreement. Money loss amounted to $2 billion a year.

According to the results of Forum on international cooperation of Russia and Kazakhstan, changes has been made to the agreement between RF and Kazakhstan on Russian oil supply to Kazakhstan on September 19 of this year.

Previously, Russian energy minister Alexander Novak has stated that the previous agreement didn't have determination methodology of how Russian losses will be repaired on export customs, as Russian oil was supplied to Kazakhstan free of duty.

"The methodology, according which losses of RF due to duty-free supply will be taken into consideration, was approved in this change. The supplies will be made with equivalent in oil volume, which will enable additional budget receipts from realisation of oil considering the duty for Russia," Russian minister added.

According to director general of Pavlodarsk oil and chemistry plant Shukhrat Danbay, the changes in the agreement will provide constant supply of Russian oil to Kazakhstan in 2012 and 2013, till 2014.

"After 2014 this issue will be settled through next round of negotiations. This is a normal negotiation process," he said.

Danbay said following completion of modernization project of Pavlodar oil and chemistry plant, which has to be finished in 2016, the company will completely become free of dependence from Russian raw materials.

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