Aktobemunaigas intends to increase production up to 2.5 mln tons

/IRBIS, Jan.21, 00/ - REUTERS informs, with the reference to the chairman of the Board of Aktobemunaigas Van Chzhunsai, that Kazakhstani oil production company Aktobemunaigas plans to increase oil production in 2000 up to 2.5 mln tons from 2.3 mln tons last year. "In 1999 production volume reached 2 mln 300 th. tons. This coming year we plan to extract 2 mln 500 th. tons as the world prices for oil improves", he said. 60.3% of the company's shares belongs to Chinese national petroleum company (CNPC), which bought it for $320 mln in 1997 with the promise to invest $585 mln more in 5 years. 20% block of shares is owned by the government of Kazakhstan and it constantly tries to sell them on the stock market or to a strategic investor. CNPC is criticized by Kazakhstani mass media for laying off about 2,000 people, and for reduction in investments into the production, according to the newspapers. "Difficult" situation in the company Aktobemunaigas has been discussed by Kazakhstani ambassador in China Kuanysh Sultanov with the president of CNPC and high rank officials of Chinese Ministry for foreign affairs. "The president of CNPC agreed that some difficulties exist that is not suitable for the Chinese counterparts. He explained that these difficulties were caused by insufficient investments into the corporation", informs "Kazakhstanskaya pravda". The chairman said economic difficulties had been due to problems with the sales. Most of the oil were sent to Russia due to an absence of transit quota, and where the price for oil was much lower than the world prices. "In such a situation production volume decreased and wages were delayed", said the chairman. He also said 90% of the information about Aktobemunaigas in mass media was far from the reality. Due to economic problems 1,200 people were laid off in 1999 to optimize internal structure of the company, he informed. He explained the decrease in investments during last two years as a result of production inefficiencies. "Two years remain and we promise we can meet our contractual obligations within this time limits", he said. Chinese investor intends to expand his market share, but talks with Russian oil companies about substituting oil in accounts settlement with the third world countries are not so successful. About one fifth of the oil, produced at Aktobemunaigas, is transported to China by railroads. The chairman also said business plan of the pipeline from Kazakhstan to China was ready and the only factor is "long term survey of the market and the source of oil".