Association head: Kazakhstan possesses significant hydrocarbon reserves
Astana, Kazakhstan, Jan.20
By Daniyar Mukhtarov - Trend:
Kazakhstan has significant hydrocarbon reserves, Director General of KazEnergy Association Asset Magauov told Trend.
"Kazakhstan possesses significant hydrocarbon reserves with 5.2 billion tons of oil and nearly 3.9 billion cubic meters of gas, as well as good prospects for carrying out geological exploration work, primarily at sea," Magauov said.
However, Kazakhstan ranks 34th in the world for the volume of consumption of primary energy resources which corresponds to 62.57 million tons of oil equivalent, or 0.6 percent of world consumption according to Magauov. About half of the primary energy resource consumption falls to the energy sector.
The latest commercial fields were discovered as a result of geological exploration work carried out under contracts signed in the late 1990s and early 2000s, according to the association head. After 2005, a tendency towards reduction was observed in the volume of investments in exploration and the number of concluded contracts on subsoil use.
"Thus starting from 2015, we should expect a significant reduction in the level of reproduction of reserves due to the revaluation of already discovered fields," Magauov said.
Magauov believes that one of the reasons for this situation is the extremely low investment attractiveness of geological exploration.
"In this connection it is necessary to take measures to ensure the replenishment of the mineral resource base in Kazakhstan, namely to adopt a State geological exploration programme," Magauov said.
Additionally according to Magauov, Kazakhstan will have to balance the tax system at a level optimal for attracting investment in geological exploration and to consider the possibility of returning the combined contracts for exploration and production to preparation.
"The current system of public management of geological exploration also requires improvement through the establishment of an independent state body such as an f GeologyAgency," Asset Magauov said.
Translated by L.Z.
Edited by S.M.