Tag Archives: hydrocarbons

Russian oil transits through Kazakhstan

NOV. 11 2013 (The Conway Bulletin) — The deal has been in the making all year. It’s still not there, yet, but it is close.

Rosneft, a Russian energy company, signed a preliminary deal with Kazakh energy company Kazmunaigas and oil pipeline monopoly KazTransOil to transit oil to China.

A final deal is expected by the end of the year.

Russia is increasing exports to China but it has run out of pipeline capacity. Kazakhstan has invested hugely in expanding its pipeline network and has excess capacity so, for a fee, it has agreed to pump Russian oil east.

The deal is important because it further cements the Russia-Kazakhstan alliance; Kazakhstan is a member of Russia’s Customs Union and the two countries are integrating their defence systems.

It also highlights the importance of Kazakhstan’s pipeline infrastructure to China. Without it, China’s oil supply would be weaker.

Media reported that Russia plans, currently, to pump 140,000 barrels per day through Kazakhstan’s pipeline network. This, though, is expected to rise.

The final details have yet to be worked out but this is significant news.

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(News report from Issue No. 160, published on Nov. 13 2013)

Kazakh oilfield suffers new delays

NOV. 11 2013 (The Conway Bulletin) — Kashagan will not re-start oil production until 2014 because of worse-than-expected repairs to a gas leak, Christophe de Margerie, head of Total, one of the partners developing the Caspian Sea site, said. Over the past month, the consortium developing Kashagan has gradually delayed further the re-start of oil production.

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(News report from Issue No. 160, published on Nov. 13 2013)

Azerbaijan builds port in Turkey

NOV. 12 2013 (The Conway Bulletin) — Azerbaijan’s state energy company SOCAR wants to build the largest port in Turkey, media quoted its head, Rovnag Abdullayev, as saying. The plan underlines Azerbaijan’s importance to Turkey as one of its main economic partners. The port will cost $400m to build and be operational by 2016, Mr Abdullayev said.

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(News report from Issue No. 160, published on Nov. 13 2013)

Kazakhstan signs oil deal with Russia

NOV. 11 2013 (The Conway Bulletin) — Russia and Kazakhstan signed a preliminary deal to pump Russian oil through Kazakh pipelines to China. Russia’s pipeline network is full while Kazakhstan has spare capacity.

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(News report from Issue No. 160, published on Nov. 13 2013)

Refinery restarts operations in Kazakhstan

NOV. 11 2013 (The Conway Bulletin) — Shymkent refinery re-started fuel production after a month-long planned shut-down for maintenance work, official Kazakh media reported, easing pressure on petrol supplies. Re-starting the Shymkent refinery, one of only three in Kazakhstan, on schedule was important after reports of petrol shortages and price rises.

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(News report from Issue No. 160, published on Nov. 13 2013)

Karimov sacks deputy at Uzbekneftegaz

NOV. 7 2013 (The Conway Bulletin) — Fuel shortages and a power struggle in Uzbekistan appear to have claimed another major scalp in Shavkat Majidov, the long-serving first deputy chief of Uzbekneftegaz. Although no official information has been made available, media reported Uzbek President Islam Karimov sacked Mr Majidov over continued fuel supply problems.

Mr Majidov was a powerful man, in charge of oil-related affairs in Uzbekistan and closely linked with Gulnara Karimova, Mr Karimov’s elder daughter.

Ms Karimova had once been considered a potential presidential successor but more recently she has come under pressure from rivals. Prosecutors in Europe and Uzbekistan have opened investigations into her business affairs; her supporters are being targeted.

Mr Majidov’s removal, according to a media report, is linked to an investigation into shortages at the Ferghana Oil Refinery. Ms Karimova’s ally Akbarali Abdullayev had controlled the refinery until police arrested him in October. This arrest, it appears, left Mr Majidov vulnerable. It has also allowed outsiders another glimpse of the interwoven world of politics and business in Uzbekistan.

Sultan Alisher, a member of parliament loyal to Mr Karimov, and director of the Shurtangaz chemical plant, has taken over as deputy head of Uzbekneftegaz. He’s a safe pair of hands that Mr Karimov can rely on as the power game in Uzbekistan unfolds.

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(News report from Issue No. 160, published on Nov. 13 2013)

Uzbekistan to import oil from Turkmenistan

NOV. 11 2013 (The Conway Bulletin) — Looking to stem fuel shortages, Uzbekistan has agreed a deal with neighbouring Turkmenistan to import oil to Uzbek refineries, media reported quoting a subsidiary of the Uzbek state-run energy company Uzbekneftegaz. Oil production in Uzbekistan has been decreasing and its three refineries are running below capacity.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 160, published on Nov. 13 2013)

Tethys sells assets in Kazakhstan

NOV. 1 2013 (The Conway Bulletin) — Tethys Petroleum, which is listed on the London Stock Exchange, sold half of its Kazakh assets to China’s SinoHan Oil for $75m. China has been rapidly buying up energy assets in Kazakhstan. SinoHan Oil is a fully-owned subsidiary of HanHong. Tethys has operations across Central Asia and in Georgia..

(News report from Issue No. 159, published on Nov. 6 2013)

Fuel shortage continues in Uzbekistan

NOV. 1 2013 (The Conway Bulletin) — Despite assurances to the contrary, media groups continued to publish reports which said there was a shortage of fuel in Uzbekistan. US-funded Radio Free Europe/Radio Liberty reported that the worst shortages were in the eastern Ferghana Valley.

(News report from Issue No. 159, published on Nov. 6 2013)

Kashagan’s woes emerge in Kazakhstan

OCT. 24 2013 (The Conway Bulletin) — It’s been another turbulent week for the consortium of partners developing the Kashagan oil field in the Kazakh sector of the Caspian Sea.

This is the field that finally produced its first oil in September after a 13-year, $50b construction phase. It is Kazakhstan’s most high profile industrial project and also carries the nation’s hopes of securing a place as one of the world’s top oil exporters.

The pressure is on, then.

It hasn’t been a smooth route towards commercial oil production at Kashagan, though.

First a gas leak temporarily halted oil production in September. This was fixed but another gas leak halted production a few days later. After initially brushing off this gas leak and saying that it wouldn’t derail the production timetable, officials at the North Caspian Operating Company (NCOC), that’s the name of the company running the site, have changed their mind.

Kashagan will now close for a few weeks until the leak is repaired, media quoted an NCOC statement as saying, meaning that a commercial production target of 75,000 barrels of oil a day will not be hit this month.

A few days later media also reported that AgipKCO’s managing director, Umberto Carrara, had decided to retire after seven years in the job. AgipKCO was the company formed to build Kashagan. NCOC said Mr Carrara’s departure was unconnected to the delays at Kashagan.

(News report from Issue No. 158, published on Oct. 30 2013)