Kazmunaigas intends to increase oil production, start shelf's development

/REUTERS, Almaty, Oljas Auezov, February 26, 03/ - Kazakhstan state oil and gas holding Kazmunaigas intends to increase in 2003 oil production up to 7.5 m tons from 7.4 m tons in 2002, start preparation for development of four structures at Caspian sea shelf and industrial development of gas field Amangeldi, and also st in operation oil pipeline Kenkiyak-Atyrau, informed the company. "Oil production by daughter companies (in 2002) was 7.43 m tons that is exceeds by 13% previous year's level, - says the company's press-release, which was distributed at briefing on Wednesday. - In 2003 oil production is planned in the volume 7.5 m tons". Total net income of Kazmunaigas, which was founded about one year ago, equaled in 2002 to KZT56.8 bn ($370 m). Total volume of oil production in Kazakhstan - the country's major exported goods along with metals - equaled in 2002 to 47.2 m tons. 13.1 m tons of them was produced by Tengizshevroil - joint venture of Kazkhstan and the group of foreign companies, which were headed by American ChevronTexaco. Within the framework of another large project - development of Karachaganak field with participation of BG, Agip, ChevronTexaco and LUKOIL - last year there were produced 5.1 m tons of gas condensate and 4.7 bn cubic meters of gas. Kazmunaigas informed that last year volume of oil transportation by daughter company Kaztransoil fell to 30.3 m tons from 32.02 m tons one year before, and Kaztransgas, which is also controlled by the holding, decreased volumes of gas transportation through its network by 2.0% to 109 bn cubic meters. At that, volume of Kazakhstan gas export increased, according got the company's data, 6 times as much to 5.9 cubic meters. Oil transportation by tankers increased 10 times in comparison with 2001 to 3.2 m tons. "Transportations are directed mainly to Iran", - said president of Kazmunaigas Lyazzat Kiinov said at the briefing. In accordance with it В связи с этим Kazmunaigas intends to purchase three oil tankers in 2003 with capacity equaling to 5,000-10,000 tons, which are being built already in Turkey, and also does not exclude the possibility to order three more similar tankers. SHELF However the company's major task is oil production at shelf. By the Government's decision of Kazmunaigas will own 50% share in all new oil production projects. "Drakhan, Zhambai, Abai, Isatai - at these structure we plan to start working this year", - Kiinov said. Kazmunaigas, which has no funds to carry out all works on exploration and development of difficult offshore deposits, intends to attract foreign investors for it. In particular, according to Kiinov's words, Spanish Repsol may be invited to work over the structure Darkhan - if it invests $80 m into development of gas field Amangeldi, which is meant for providing south of Kazakhstan with fuel. "As soon as we start negotiating about Darkhan, they give us this money", - said the head of Kazmunaigas. But now the only acting project in Kazakhstan sector of Caspian sea is still development of the giant field Kashagan, where western companies consortium, which is headed by Italian Agip, intends to start industrial oil production by 2006. Kazmunaigas also hopes this year Russian partner on exploration of shelf field Kurmangazi - state company Rosneft - drills one- two exploration wells. Kiinov said, as regards export of produced oil, policy of Kazmunaigasа is still concentrated in increasing of carrying capacity of existing western routs from Atyrau and joining new fields to them, also through oil pipeline Kenkiyak- Atyrau. "Industrial exploitation of the oil pipeline will start in the second half of 2003", - says the company's press-release. Afterwards pipeline from South Kazakhstan Kumkol-Aralsk-Kenkiyak may join it, and as the result of it almost all large oil fields will have access to export terminals. Another direction of oil export - to China - is prevented, according to Kiinov's words, because Chinese companies have not significant production volumes on Kazakhstan territory. "They ask to let them participate in bigger projects", - he said. State holding's head is sure in availability of Chinese rout. "This is the large market, which will take and swallow everything", - Kiinov believes. [2003-02-26]