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Negotiations on export of Kazakh oil to Belarus underway

Oil&Gas Materials 4 November 2019 17:20

BAKU, Azerbaijan, Nov. 4

By Nargiz Sadikhova - Trend:

Kazakhstan and Belarus continue negotiating export of Kazakh oil and petrochemical products to Belarus, Kazakhstan’s Ministry of Energy told Trend.

At a meeting with ex-Ambassador of Kazakhstan to Belarus Ermukhamet Ertysbayev in May 2019, President of Belarus Alexander Lukashenko proposed to activate negotiations on export of Kazakh oil to Belarus.

According to Kazakh Minister of Energy Kanat Bozumbayev, during Lukashenko’s visit to Kazakhstan, parties signed a preliminary agreement on export of Kazakhstan’s oil and petroleum products to Belarus and on overall cooperation in the area. He added that Kazakhstan is planning on exporting from 1 to 3.5 million tons of oil and petroleum products a year to Belarus.

As noted in the ministry, oil export issues are currently undergoing negotiations and working consultations between the parties.

“The work of the draft agreement is underway. Logistics will depend on economic efficiency and will be determined in accordance with the agreements of economic entities,” the ministry commented.

Furthermore, in order to plan the exact volumes of oil export, the bilateral agreement must be signed and ratified.

“Review of the agreement projects will be held within the framework of consultations of working groups, which will consist of interested government bodies and organizations of the parties,” the ministry noted.

According to the data of Eurasian Economic Commission, value of Kazakhstan export to Belarus amounted to $63.5 million during first eight months of 2019, which is 24.4 percent less compared to the same period of last year. In turn, value of Belarus export to Kazakhstan was $526 million during the reporting period, which is 2.3 percent less compared to the same period of 2018.

More than two thirds of Kazakhstan’s oil exports go to four importing countries: Italy, Holland, France and Switzerland. Kazakhstan also exports oil to most of the CIS countries. The largest and most promising deposits in Kazakhstan are Kashagan, Karachaganak and Tengiz fields in the kazakhstan's sector of the Caspian Sea. The largest oil companies operating in the region are Tengizchevroil, KazMunayGas, and North Caspian Operating Company.

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