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Kazakhstan: No changes on Kashagan

No updates in plans for offshore Kashagan oil field, the deputy energy minister in Kazakhstan says. Photo courtesy North Caspian Operating Co. ASTANA, Kazakhstan, Sept. 29 (UPI) — There are no changes in the operational plans for the giant Kashagan oil field off the coast of Kazakhstan, the country’s deputy energy minister said. Kazakh Deputy Energy Minister Uzakbai Karablin told an audience at an investment conference in the capital Astana commercial production from the field was expected about six weeks after operations are slated to begin in late 2016. "All the work was planned for this period, and there are no changes for now," he was quoted by the regional Trend news agency as saying. Kashagan is among the largest oil fields in the world, with an estimated 16 billion barrels of oil reserves. Production was halted in October 2013, less than a month after it started, when a […]

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Russia’s Lukoil sells China its stake in Kazakh oil producer

Kazakh government expects oil boom once troubled Kashagan oil field resumes operations. Photo courtesy North Caspian Operating Co. MOSCOW, Aug. 21 (UPI) — Russia’s Lukoil said it sold its stake in a Kazakh oil producer to a rival in Beijing just as China’s economy falters and Kazakhstan’s gets a $1 billion loan. The Russian company said it sold its 50 percent in oil producer Caspian Investments Resources to Sinopec, a rival company based in China, for $1 billion, giving the Chinese oil company full control . The Caspian producer plays a role in the development of five separate fields in Kazakhstan. Lukoil said cumulative production since 2006 has amounted to 95 million barrels of crude oil and around 1 billion cubic feet of natural gas. The investment from Sinopec comes amid a slowdown in the Chinese economy. To stave off declines, the Chinese government devalued the national currency. This […]

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Kazakhstan floats tenge, currency tumbles

People wait in line outside a currency exchange office in Almaty, Kazakhstan, August 20, 2015. Kazakhstan’s under-pressure tenge lost more than a quarter of its value on Thursday after the oil producing central Asian nation, hit by a sharp fall in world crude prices, introduced a freely floating exchange rate for the currency. Acting against a backdrop of devaluation and depreciation in the currencies of some of its major trading partners and rivals, Kazakhstan’s government and central bank said the country’s economic policy would henceforth be based on inflation targeting. "This is not a devaluation, this is a transition to a freely floating rate when the market itself determines a balanced exchange rate on the basis of demand and offer," central bank Governor Kairat Kelimbetov told a news conference broadcast from the capital Astana. The official tenge rate tumbled by 26.2 percent to 255.26 per dollar on the Kazakhstan […]

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Yuan Ripples Reach Kazakhstan as Tenge Tumbles Most Since 2014

Kazakhstan allowed its tenge to weaken the most since a devaluation 18 months ago, signaling Central Asia’s biggest crude exporter wants to adjust to declines in the currencies of its top trading partners, China and Russia. The tenge declined 4.4 percent to 197 per dollar by 2:29 p.m. in Almaty. That was the steepest retreat since February 2014 when the central bank, which uses its foreign-currency reserves to manage the exchange rate within a trading band versus the dollar, depreciated it by about 20 percent. Central bank representatives weren’t available to comment when contacted by Bloomberg. Pressure is mounting on countries that trade with China to let their currencies weaken after the yuan slide last week made their exports less competitive. Kazakhstan has also suffered from oil’s 22 percent retreat in the past two months, especially since its northern neighbor and trading partner Russia is allowing the ruble to […]

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Ukraine considers Kazakh gas transit options

Ukraine is reviewing its natural gas options after tilting away from its former Soviet patrons. File Photo by UPI/Hamid Forotan KIEV, Ukraine, July 17 (UPI) — Trade agreements with Kazakhstan may include the possibility of receiving natural gas shipments sent through the country, Ukraine’s government said. The Ukrainian government said Friday it was working to develop trade and economic deals with Kazakhstan. Arrangements were drafted during bilateral economic sessions attended by deputy ministers on both sides. Kiev said the terms of the agreement call on representatives from each country to examine the potential for energy cooperation. "The participants of the meeting also agreed to study the issue of supply to Ukraine of Kazakhstan natural gas and transit through the territory of Kazakhstan of Turkmen and Uzbek natural gas," the Ukrainian government said in a statement. An April report from the International Energy Agency said a more liberalized energy sector […]

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Kazakhstan hosts oil-spill roundtable

Parties to a roundtable discussion on oil spills in Kazakhstan look to response to Deepwater Horizon incident in 2010 as a case study. File Photo by UPI/U.S. Coast Guard. ASTANA, Kazakhstan, April 24 (UPI) — The government in oil-rich Kazakhstan hosted a roundtable discussion on developing a regional response to spills, the OSCE said Friday. The Organization for Security and Cooperation in Europe in coordination with the Kazakh Energy Minister and the U.S. Embassy in Kazakhstan organized a discussion on how best to plan a regional response to an oil spill program. "Once approved, the regional oil spill plan will be an important tool to ensure that the regional authorities have a system that will ensure effective co-ordination and integration of all relevant resources both from government and private sectors," Peter Taylor, a manager for the regional oil spill response organization, said in a statement. The roundtable brought more […]

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Kazakhstan expects oil production boom

Kazakh government expects oil boom once troubled Kashagan oil field resumes operations. (Photo: North Caspian Operating Co.) Kazakhstan’s government said Wednesday it expects oil production to increase by as much as 30 percent in part because of operations at its giant Kashagan field. Kashagan is among the largest oil fields in the world, with an estimated 16 billion barrels of oil reserves. Production was halted in October 2013, less than a month after it started, when a pipeline associated with the field cracked open. Kazakh Deputy Energy Minister Uzakbai Karabalin told reporters the government in Astana is determined to increase production despite a series of setbacks. "Oil output is expected to reach 630 million barrels in 2017 and 760 million barrels in 2020," he said. "This increase will be due to the expansion project at [onshore oil field] Tengiz and resumption of offshore oil production at Kashagan." Kazakh production […]

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Giant oil field in Kazakhstan moving forward

Italian energy company Eni committed to moving forward with developments at Kashagan oil field, one of the largest in the world. (Photo: North Caspian Operating Co.) ASTANA, Kazakhstan, Dec. 22 (UPI) — Italian energy company Eni said Monday it was committed to getting the Kashagan oil project in Kazakhstan, one of the world’s largest, up and running. Eni Chief Executive Officer Claudio Descalzi met in Astana with Kazakh leaders to discuss developments at the offshore Kashagan oil field . Kashagan is among the largest oil fields in the world, with an estimated 16 billion barrels of oil reserves. Production was halted in October 2013, less than a month after it started, when a pipeline associated with the field cracked open. Last week, members of the production consortium, which includes Eni, met with government officials and the North Caspian Operating Co. to review the project. Terms of an agreement charting […]

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One Of The World’s Biggest Oil Projects Is A Total Fiasco

4579 Votes REUTERS/Anatoly UstinenkoAn aerial view shows artificial islands on Kashagan offshore oil field in the Caspian sea, western Kazakhstan, April 7, 2013. Picture taken April 7, 2013. WHEN it was discovered in 2000, the Kashagan oilfield in Kazakhstan’s waters in the northern Caspian Sea was the world’s biggest oil find in three decades. By now it was supposed to be pumping out 1.2m barrels a day (mbd), enough to meet Spain’s entire consumption. But the project, whose name sounds unfortunately like “cash all gone”, went spectacularly awry. A year ago, when the first trickle of crude briefly flowed, it was already eight years behind schedule. Having cost $43 billion, it was $30 billion over budget. And production lasted only a few weeks before leaks of poisonous gas forced its suspension. Earlier this month a government minister admitted it would not restart until at least 2016. Undeterred by the […]

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