Kazakhstan has suspended export of black oil, being prepared to winter

/REUTERS Almaty office, Sep.21, 99/ - According to today's publication of governmental decree, from September 25, 1999 till December 25, 1999 the Government of Kazakhstan suspended the export of black oil in connection with the heating season beginning and a critical situation with a black oil in the country. The Ministry of power, industry and trade is obliged to introduce before January 1, 2000 the project of the black oil export regulation. According to the decree, akims of oblasts should three time a month inform government about providing with black oil. Deputy Prime Minister Aleksandr Pavlov is entrusted with the control of decree. The sales director of SHNOS (Chimkent oil refining factory) commercial department has told REUTERS, that because of interdiction the factory loses the currency contracts on the sum of about $5.5 million. "After a rise in the oil price we have found the long-term contracts in the non-CIS countries. Now all of them are breaking. It is force major, but the customer, which has not purchased from us, now will go to the Russia and there will purchase. We will lose currency", - Amangeldy Nurov has told. As he said, SHNOS monthly exported about 100.000 tons of black oil through the Russian ports and Klaipeda to England, USA and Italy, about 70.000 tons were deliver for home market. Annual SHNOS production of black oil, depending on oil deliveries, makes about 1.5 million tons. According to Nurov, SHNOS prefers to export black oil, as in Kazakhstan there are not enough of solvent consumers. He has noted, that SHNOS will use the hard terms on payment, otherwise it will reduce volumes of black oil production. In his opinion, the government should determine the export quotas on export of black oil. SHNOS is the most stable among all three Kazakhstan's refinery. After increase of the world oil prices all refinery prefer to export production abroad, that has caused deficiency of petroleum in the country. In August because of deficiency of fuel during harvest, the government has cancelled the excises on imported petrol and diesel fuel (130 Euro and 88 Euro accordingly).