Tag Archives: oil

Pop star Sting sides with striking Kazakh oil workers

JULY 5 2011 (The Conway Bulletin) – Workers’ rights, the energy business and rock music are mixing into a potent concoction in Kazakhstan.

British pop star Sting stepped into the row between striking oil workers and Kazakhstan’s business elite when he cancelled a concert in support of a six-week long strike. Sting’s concert had been planned for Astana on July 4 as part of Kazakh President Nursultan Nazarbayev’s birthday celebrations.

Cancelling it handed the oil workers a massive publicity coup and Nazarbayev a very public snub.

On his website Sting, former frontman of the 1970s/1980s rock band The Police, said: “Hunger strikes, imprisoned workers and tens of thousands on strike represents a virtual picket line which I have no intention of crossing.”

Perhaps Sting also had in mind the criticism he took last year after playing for the daughter of Uzbek President Islam Karimov, a man western human rights groups accuse of abuses.

The Kazakh strikers are mainly from Ozenmunaigas, a subsidiary of the state energy company Kazmunaigas in Kazakhstan’s energy producing western hinterland. They say they are not being paid enough. The authorities and Kazmunaigas have declared the strike illegal and arrested some of the workers’ leaders but they have failed to pressure them back to work.

Strikes in Kazakhstan are rare. This one though has already forced KMG EP, the London-listed arm of Kazmunaigas, to reduce its 2011 production forecast by 4% and looks set to rumble on.

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(News report from Issue No. 47, published on July 6 2011)

Oil strike hits production in Kazakhstan

JUNE 28 2011 (The Conway Bulletin) – The London-listed subsidiary of Kazakhstan’s state oil company, KMG EP, reduced its 2011 oil production target by 4% because of strikes in the west of the country. Hundreds of oil workers have been on strike for a month over pay.

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(News report from Issue No. 46, published on June 28 2011)

Kazakhstan’s Kazmunaigas pulls out of Iraq deal

MAY 11 2011 (The Conway Bulletin) – KMG EP, the London-traded unit of Kazakh state energy company Kazmunaigas, said it had pulled out of a joint venture with the Korea Gas Corporation to develop an oil field in Iraq. It did not say why it had pulled out of the high-profile deal which it agreed in October last year.

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(News report from Issue No. 40, published on May 17 2011)

China extends its reach across Central Asia

APRIL 25 2011 (The Conway Bulletin) – In contrast to the cool reception he received when he visited the European Union in Brussels in January, China laid on smiles and a guard of honour for Uzbek President Islam Karimov’s state visit on April 19/20.

Mr Karimov was in Beijing to meet Chinese President Hu Jintao and to sign deals worth billions of dollars including an agreement to double the amount of gas Uzbekistan sells to China. The Uzbek state news website uza.uz said the deals were worth $5b and that Chinese banks had also agreed to lend $1.5b to 4 Uzbek banks for joint-ventures.

The numbers underscore just how much power and impact China can buy in Central Asia. Mr Hu hosted a similar visit to Beijing by Kazakh President Nursultan Nazarbayev in February.

Over the last few years China has steadily bought up assets across the region, subverting the influence of both Russia and the West.

For the Central Asia states, China allure is not just its wealth, its proximity and its hunger for oil and gas. For now, at least, China is also less troublesome to deal with.

Former colonial power Russia has quarrelled with Turkmenistan and Uzbekistan over the price of gas and the West has previously condemned human rights abuses, such as the shooting in 2005 of around 500 people at a protest in eastern Uzbekistan. China, instead, talks of jointly defeating terrorism, is welcoming and lays on the charm.

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(News report from Issue No. 37, published on April 25 2011)

Indian PM visits Kazakhstan and signs deals

APRIL 15/16 2011 (The Conway Bulletin) – Indian PM Manmohan Singh visited Kazakhstan and signed a number of deals. The deals included Indian state energy company ONGC Videsh buying a 25% stake in the Satpayev exploration block, one of the biggest in the Caspian Sea, and for Kazakhstan to supply India with 2,100 tonnes of uranium by 2014.

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(News report from Issue No. 36, published on April 18 2011)

Kazakhstan’s Kazmunaigas profit doubles in 2010

APRIL 18 2011 (The Conway Bulletin) – Perhaps Kazakhstan’s most important company, state oil and gas monopoly Kazmunaigas said net profits doubled in 2010 to about $2.7b, Reuters reported. Kazmunaigas did not give a reason for the profit rise.

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(News report from Issue No. 36, published on April 18 2011)

Armenia improves links with Iran

MARCH 27 2011 (The Conway Bulletin) – Underlining Armenia’s strengthening ties with Iran, President Serzh Sargsyan joined Iranian leader Mahmoud Ahmadinejad in Tehran to celebrate the Persian new year. Iran and Armenia are building a rail link and an oil pipeline. Leaders from Afghanistan, Iraq, Tajikistan and Turkmenistan also joined the celebrations.

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(News report from Issue No. 33, published on March 28 2011)

Kazakhstan: Kazmunaigas looks to borrow $1bln

MARCH 11 2011 (The Conway Bulletin) – Kazakh energy company Kazmunaigas has asked banks for proposals to borrow $1b in a five-year unsecured loan, Reuters reported quoting unnamed sources. This is the first unsecured loan request from Kazakhstan since 2009 when the banking sector restructured. It may trigger other Kazakh companies to follow.

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(News report from Issue No. 31, published on March 14 2011)

Kazakhstan signs more deals with China

FEB. 22 2011 (The Conway Bulletin) – On a three-day trip to Beijing, Kazakh President Nursultan Nazarbayev agreed a series of deals with Chinese President Hu Jintao. The deals included Chinese funds for a new Astana-Almaty high speed rail link, a uranium supply deal and various oil and gas projects.

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(News report from Issue No. 29, published on Feb. 28 2011)

Kazakhstan and China’s increasingly cosy economic relationship

FEB. 28 2011 (The Conway Bulletin) – Despite the rather turgid official photos, Chinese President Hu Jintao and Kazakh President Nursultan Nazarbayev left observers in no doubt how important they viewed relations between China and Kazakhstan when they met in Beijing on Feb. 22.

According to Xinhua, China’s state news agency, Mr Hu told Mr Nazarbayev that his trip to Beijing was the first by a head of state since the Chinese New Year on Feb. 3.

Mr Nazarbayev went one better. He told Mr Hu this was his first overseas trip of 2011.

Away from the platitudes, the deals the two leaders struck underlined how quickly the Sino-Kazakh economic relationship had developed. Mr Nazarbayev returned from Beijing with investment from China worth billions of dollars for a wide range of projects.

Perhaps the most important was for uranium sales. Kazakhstan is one of the world’s biggest uranium producers while China is energy hungry and has said it wants to boost its nuclear energy capacity. According to media reports Kazakhstan pledged to feed China with 40% of its uranium needs over the next few years.

Also agreed was a $1.7b loan from China to Kazakhstan’s sovereign wealth fund Samruk-Kazyna, Chinese investment for a 1,050km high-speed rail link between Astana and Almaty and a $1b plan to modernise the oil refinery in Atyrau on the Caspian Sea — one of three in Kazakhstan.

According to Mr Nazarbayev, Kazakhstan’s bilateral trade with China reached $20b in 2010, up 45% from 2009.

It looks set to continue to rise.

ENDS

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(News report from Issue No. 29, published on Feb. 28 2011)