|Kazakhstan South Turgai basin 7 MMcfd 440 b/d|
Oil/Gas Projects april 2005
||Caspian Holdings identifies 7 new wells in Zhengeldy fields|
Kazakhstan has the Caspian Sea region's largest recoverable crude oil reserves, and accounts for approximately two-thirds of the roughly 1.5 million barrels per day (bbl/d) currently being produced in the region (including regional oil producers Kazakhstan, Azerbaijan, and Turkmenistan). Accordingly, Kazakhstan has Central Asia's largest economy. Kazakhstan's real gross domestic product (GDP) grew by 9.5% in 2002, to $24.5 billion, resulting in a per capita GDP of $1,640 (roughly comparable to Guatemala and Ecuador). This marked only the third consecutive year of significant economic growth in Kazakhstan since independence.
Economic growth in recent years has been propelled by Kazakhstan's growing petroleum industry, and as a result, the state's budget revenue is roughly 55% dependent on the oil sector. Several economic research efforts conducted in 2002 and 2003 highlighted the growing danger of possible over-reliance on the oil sector, with some analysts predicting that without more investment into the country's non-oil sectors, Kazakhstan's economic capacity will be strained by 2007, thus stifling growth in the next decade. In an effort to reduce Kazakhstan's exposure to price fluctuations for energy and commodities exports, the government has created the National Fund of Kazakhstan. As of June 2003, the National Fund held $2.3 billion.
Foreign investment continues to pour into Kazakhstan's potentially
oil and gas sector. The country has received $10 billion in foreign
since independence in late 1991, including slightly over $1 billion in
2000. In January 2001, President Nazarbayev issued a decree
the National Fund to make the country less exposed to changing prices
energy and commodities exports. The National Fund, which received $660
million from U.S.
oil major Chevron in exchange for Kazakhstan's 5% stake in a joint
at the giant Tengiz oil field, will be replenished with extra budget
taxes from oil companies, and signing bonuses and royalties paid by
partners in joint ventures. In February 2001, Kazakh Economy Minister
Kulekeyev announced that the resource-rich Central Asian state planned
to attract $65-70 billion to its promising oil and gas sector over the
Kazakhstan is the second largest oil producer among former Soviet republics after Russia, with output of 693,000 bbl/d in 2000. Almost half of Kazakh oil production comes from three large onshore fields: Tengiz, Uzen, and Karachaganak. Kazakhstan has been eager to tap its production potential of over 3 million bbl/d, and former Prime Minister Nurlan Balgimbayev (now the head of Kazakhoil) has estimated that Kazakhstan could earn $700 billion in revenues (including taxes) from offshore oil and gas fields over the next 40 years.
Kazakhstan sits astride the northeast portion of the Caspian Sea and claims most of the Sea's biggest known oil fields. Kazakhstan's combined onshore and offshore proven hydrocarbon reserves have been estimated to be between 9 and 17.6 billion barrels (comparable to OPEC members Algeria on the low end and Qatar on the high end). Although only a minor world oil exporter in 2002, Kazakhstan is poised to become a more significant player in world oil markets over the next decade.
Kazakhstan produced approximately 939,000 barrels
day (bbl/d) of total liquids in 2002 and consumed only 140,000 bbl/d,
in net exports of
799,000 bbl/d. Markets for exported Kazakhstani oil are growing rapidly, with oil being delivered to world markets through the Black Sea (via Russia) and the Persian Gulf (via swaps with Iran), as well as some additional traffic northward to Russia via pipeline and rail.
In order to develop its production, Kazakhstan has
its resources to development by foreign companies. International oil
have taken the form of joint ventures, production sharing agreements
and exploration/field concessions. By far, the largest of these is the
Tengizchevroil joint venture. In April 1993, Chevron concluded the
Tengizchevroil joint venture to develop the Tengiz oil field, with 6 to
9 billion barrels of estimated oil reserves. The Tengizchevroil joint
produced 190,000 bbl/d in 1999, and production could increase to
bbl/d by 2002. Given adequate export outlets, the Tengizchevroil joint
venture could reach peak production of 750,000 bbl/d by 2010.
President helps launch a new zinc plant
On October 27, president Nazarbayev took part in the launching ceremony of a new zinc plant in Balkhash town, Karagandinskaya oblast. The plant is owned and will be operated by Kazakhmys, one of Kazakhstan’s major corporations. Kazakhmys is the ninth largest copper producer and the fourth largest silver producer worldwide. The cost of the plant is approximately usd 120 million. The plant is expected to produce 40,000 tons of zinc in 2004, and to raise production to 100,000 tons of zinc by 2006.(Interfax - Kazakhstan, October 28 03)
ADB extends credit facilities to Kazakhstan
The Asian development bank (ADB) has planned a usd 190 million lending program to Kazakhstan in 2004-2006,according to the country strategic program for 2004-2006.The ADB announces it has four credits planned for this period to be spent on rural water supply, natural resource management and highway reconstruction. The ADB urged the government of Kazakhstan to take advantage of its strong, oil-fueled growth (approximated at 12% annually over the past three years) in order to more aggressively combat poverty in the republic and to more actively cooperate with other central Asian states. As of 31 December 2002, the ADB has provided a total of usd 467 million to Kazakhstan.(Kazakhstan - newswire, October 28 03)
Kazatomprom inaugurates new refining plant
On November 7, the national nuclear company Kazatomprom, the fourth largest uranium producer worldwide, started operation of a new refining plant at its "central" mine in southern Kazakhstan. The first production batch will be released by late 2003, according to a Kazatomprom release. The anticipated initial capacity of the new plant is 1,700tons of uranium oxide and protoxide per annum; the plant design capacity is 2,000 tons per annum. Kazatomprom invested usd 4.5 Million of its own funds to construct the facility, which is expected to process half of all uranium extracted by Kazatomprom in southern Kazakhstan. Kazatomprom will send the other half to the Ulbinsk metallurgical plant, in eastern Kazakhstan. (Interfax -Kazakhstan, November 7 03)
Confronting Kazakhstan's 'Dutch Disease'
March 26, 2003
As the United States is engaging in regime
change in Iraq,
the political turmoil in the Middle East is driving up the oil prices.
Kazakhstan is flush with oil and gas revenues.
According to President Nazarbaev, who spoke at the recent Kazakh-Italian business forum in Rome, Kazakhstans projected economic growth for the first quarter of 2003 is 9 percent. Italian investment in Kazakhstan reached $1.3 billion dollars. But this is barely a drop in the ambitious goal of $100 billion in investment funds Nazarbaev wants to attract in the next 10-12 years. Kazakhstan may be interested in working with the Italian state-owned ENI, the operator of Agip-led consortium in the Kazakh sector of Northern Caspian, and of the giant Karachanganak field, to export oil via Iran. If such investments materialize, experts say, they will flow overwhelmingly to the overheated oil and gas sector.
Oil revenues continue to remain in record
2003. Kazakhstan has boosted oil production by 16.6 percent in 2002, to
42 million tons. International oil majors, such as Shell and Hurricane
oil have significantly expanded their Kazakhstani holdings.
Kazakhstan will be developing Phase Three of the Karachaganak gas condensate field, which will require a $2 billion investment. The Amangeldy field in southern Kazakhstan will be expanded, and ChevronTexaco will open a polyethylene plant in April 2003.
ExxonMobil is planning to develop a strategic program for Kazakhstan jointly with the Energy Ministry for years 2003-2010. The first iteration of the program will be submitted to the government in the third quarter of this year.
Kazakhstan is boosting its hard currency and gold reserves, which grew by 9.1 percent to $5.5 billion in January, and further increased the National Fund to $1.933 billion, while gold reserves grew by 14 percent to $627 million, according to the Kazakh Central Bank press release quoted in the February Interfax Central Asian Business Report. The Central Bank said that Tenge money supply tripled, foreign deposits rose by 32.8 percent, and bank deposits increased by 46.2 percent, while lending rose 37 percent in 2002.
Using growing demand for energy, Kazakhstan announced plans to become the worlds largest uranium producer by the year 2027. Its national nuclear corporation, Kazatomprom, has increased the ore production from 794,000 tons in 1998 to 2.4 million tons in 2002. As it currently produces only five percent of the global output, the goal to become number one seems excessively ambitious. Kazakhstan has increased uranium production by 34 percent in 2002, and is planning to expand export to China, Japan and Russia.
Astana is also interested in boosting its coal production from 70 million tons in 2002 to 74 million tons in 2003. The January 2003 figures are higher than January 2002 by 21 percent.
This natural resources windfall is the strategic window of opportunity for Astana to address four structural defects of its energy-driven economy: corruption; capital flight; a dysfunctional social safety net; and the money-losing nature of the non-extracting sectors of the economy.
High-level corruption and capital flight may
be the most
difficult to resolve.
Second, it is the time for the Kazakhstani government to bring internal energy prices, including natural gas and coal, to world levels. Todays high oil prices will allow to provide subsidies to retired or laid off workers, while closing down inefficient, energy-guzzling enterprises and hiking railroad tariffs. Energy can be exported to increase revenue. Some of the workers in remote company towns can be relocated to more livable venues.
Third, social sector reform is long overdue. While salaries are higher in the energy sector by a factor of at least two in Kazakhstan, most of the gigantic profits are not invested back home to create jobs outside of the oil and gas sector, nor are tax proceeds efficiently distributed to support the elderly, sick and poor.
In addition, some of the structural unemployment 20 percent in Kazakhstan, even higher in energy-poor Kyrgyzstan and Tajikistan can be alleviated by opening the doors of the oil and gas sectors to workers from the areas hit with particularly high unemployment. This can be achieved by loosening severe interior ministry residence registration rules, which are a hick-up of the old Soviet era propiska system, and by providing better living conditions in the company towns owned by the extracting industries. As World Bank Vice President Johannes F. Linn has suggested recently, regional cooperation is likely to alleviate some of the structural asymmetries and stimulate growth. Clearly, cooperation on water utilization, pipelines, transport, and commerce is the most logical.
Unequal income distribution in Kazakhstan, where average salary is barely over $1,000 a year, (and even more so in Kyrgyzstan and Tajikistan with only $200-$300 per capita incomes), may lead to economic dislocation, social conflict, and uncontrolled migration. Kazakhstani leaders were forewarned. Both Astana and international financial institutions should address these disparities while the energy bonanza lasts.
AUTHORS BIO: Ariel Cohen, Ph.D., is Research Fellow in Russian and Eurasian Studies at the Heritage Foundation and author, with Gerald P. ODriscoll, of The Road to Economic Prosperity for Post-Saddam Iraq (2003). His expertise includes international energy security. This piece was originally published on the Central Asia-Caucasus Institute website.
Geo-economics and energy development in Central Asia
By Dr Robert M. Cutler 24-04-01
The opening, or at least the beginning of the filling, of the oil pipeline of the Caspian Pipeline Consortium (CPC), from the Tengiz field in northwest Kazakhstan to Novorossiisk on the Russian Black Sea coast, received deserved if extended -- indeed sensational -- publicity several weeks ago. The CPC line is, after all, the first new pipeline to be built from the Caspian region since the demise of the Soviet Union. The pumping of oil into the pipeline began belatedly, but it is now expected that the first tanker will be filled in Novorossiisk in June.
Yet all the attention paid to western
it difficult for most observers to gain an understanding of the overall
energy balance in Central Asia. For example, sight is often lost
of Uzbekistan's regional role as an energy producer because of its two
better-endowed neighbours, Kazakhstan and Turkmenistan. Yet as
below, Turkmenistan does not really come into play although it is
a regional actor; rather, Kazakhstan and Uzbekistan are the main
on the scene.
1. The Caspian? Don't look where they're
However, other developments in the Kazakhstani
sector have attracted less notice.
The game may not go on much longer.
Meanwhile, Kazakhstan's state oil pipeline
announced that it has established another route for oil from the
In addition, according to KazTransOil, AMG crude will now also be delivered through the oil-loading rack at Bestamak to the port of Aktau and then taken by tanker to Makhachkala (in Dagestan) for pumping into the Makhachkala-Tikhoretsk-Novorossiisk pipeline.
2. Uzbekistan's regional energy
The Amangeldy field is planned to supply customers in southern Kazakhstan, where current demand for roughly 1.5 bn cmpy of gas is satisfied by imports from Uzbekistan. Amangeldy and the adjacent Airykty deposits are estimated to contain reserves of 22 to 25 bn cm and could provide southern Kazakhstan with 600 mm cmpy of gas beginning in 2003.
Although Uzbekistani energy resources are
in the focus on Turkmenistani gas and Kazakhstani oil, Uzbekistan has
recent years -- indeed in recent months -- used its gas as a
lever against other countries in the region. In particular, Tashkent
successfully used gas for leverage in seeking short-term economic
fixes for its dire domestic situation.
So it seems that Russia is not the only state in Central Eurasia that uses energy supplies and pipelines for political arm-twisting; it just is more able to do so than most others. Uzbekistan too is using its gas supplies for leverage against its neighbours. Meanwhile, Tashkent's version of "Realpolitik" arm-twisting is fuelling the growing perception in Central Asia that Uzbekistan is seeking to become a regional hegemony.
As such, antipathy to Tashkent is on the rise in the region. For example, Uzbekistan made territorial demands on Kyrgyzstan last year concerning the ethnic Uzbek enclave of Sokh while engaging in a temporary suspension of gas exports to Kyrgyzstan as winter was beginning.To make up for the gas shortages, Kyrgyzstan increased output at its hydro-electric power plants, a move that diminished water levels in reservoirs on which Uzbekistan draws to irrigate spring planting. This side-effect then led Uzbekistan to renounce its territorial claims and assert its adherence to international legal norms for the resolution territorial disputes.
|The issue was especially sensitive since
troops in had the past violated Kyrgyzstan's sovereignty by holding
exercises on its territory without first asking permission.
Uzbeks account for one seventh of Kyrgyzstan's population, and
is the predominant power in southern Kyrgyzstan, which is linked
to the northern part of the country only by air.)
The economic life of the western part of the country, especially the northwest (and as typified by energy pipeline flows), is becoming more closely linked with the West via trans-Caspian trade and communications flows. Likewise, western Kazakhstan's links with the South Caucasus, which is geographically part of Europe (a fact that the European Union has recently recognized publicly), are increasingly direct. The north and northeast sections of the country, meanwhile, remain connected to southern Siberia also through trade in raw materials. And the south is economically and even culturally separate from both of the other sections.
By contrast, Uzbekistan, because of its
does not suffer so much from those types of problems. Indeed,
"periphery-periphery" problems are of a wholly different sort. Simply
the population is exploding most rapidly in areas where jobs are least
likely to be created, even if the entire system became more
to foreign direct investment overnight. Five of the eight most densely
populated provinces in the former Soviet area are in Uzbekistan.
(Besides the region in which the capital Tashkent is located, these are
Andijan, Ferghana, Namangan and Khorezm.)
For the sake of completeness, mention must also be made of Turkmenistan, which, with a population of close to 5 mm, is more easily held under the iron grip of President Saparmurad Niyazov. He experiences no political "periphery-periphery" problem simply becausethe opportunities for social mobilization of popular discontent have much less chance of reaching critical mass. For his development strategy, Niyazov had hoped to be able to export part of his country's huge gas reserves to India by way of Pakistan, but for that an export pipeline would have to traverse Afghanistan.
The lack of international recognition of the Taleban regime in Kabul has made financing for such a pipeline impossible to find. Meanwhile, Niyazov also has unrealised dreams of a pipeline to China. However, as it now stands, Turkmenistan's pipelines mainly feed Russia by way of Uzbekistan. Thus Turkmenistan is not really a player in the energy balance of Central Asia proper. With its distinctive history and ongoing "Turkmenisation" of the national culture, it stands apart from both Kazakhstan and Uzbekistan (although it is in conflict with the latter over border demarcation and related issues). So Uzbekistan is more clearly Central Asian than Kazakhstan, and Turkmenistan's profile verges at times on being South Asian. But Kazakhstan is Russian, European and Asian all at the same time.
4. Conclusion: Development in Uzbekistan and
Recent reports from Uzbekistan to the effect that the country's banking system has made some progress on the reform front are belied by the more recent decision by the International Monetary Fund (IMF) not to replace its resident representative because of the failure to reform the exchange-rate system. The IMF has not provided assistance to Tashkent for some time but had maintained a mission there in order to facilitate communication between the two sides. Meanwhile, other reports suggest that the World Bank will reduce the value of its next three-year lending program in the country to an extremely modest 150 mm.
By contrast, Kazakhstan accepted basically all
made to it by the IMF throughout the 1990s.
Indeed, Kazakhstan is relatively stable, and it is actually possible to make a living in the capital. For this reason, internal population shifts are also occurring because of the absence of work in towns and villages throughout the country. The threat from militant fundamentalism -- and this will probably be the first year that it actually manifests in Kazakhstan -- comes mainly in the south of the country. That is why moves towards energy self- sufficiency in Kazakhstan, especially in that part of the country to be supplied by the Amangeldy field, are potentially so significant.
Robert M. Cutler was educated at the Massachusetts Institute of Technology and the University of Michigan and holds a Ph.D. in political science. He has worked in European and Eurasian affairs for 20 years, specializing in Euro-Caspian and post-Soviet energy. His management specialties include organizational analysis and design and organizational learning under complex systems of information and cross-cultural communication. Source: NewsBase
KazTransGas: Stability, Reliability and Prospects.
[13.03.2003] By Alevtina Donskikh
Three years have passed off after KazTransGas Co. was given functions of the national operator, wholesale purchaser and seller of gas. The Government made this decision to provide gas supply to all remote regions and bring to order import-export flows. As gas production was rising, it became necessary to concentrate entire management of the branch in the hands of the Government.
In future gas production will amount to 75bn cubic meters a year against 10bn in 2001-2002.
Needs of our economy demanded this step too. Specialists forecast demand of RK economy may rise up to 15-16bn m3 by 2010.
A strict term of establishment of KazTransGas was also construction of local distributing networks to supply gas to consumers, establishment of distributing companies, whose principal functions would be gas supply and collection of payments.
Today we can already consider advisability of this decision. Experts think return to state regulation afforded to lead the branch from impasse and overcome negative aftereffects of the USSR collapse. Those changes were to make the branch a manageable and stably working economy.
The work was implemented in few stages
according to special
strategy. In the late 2000 KazTransGas
Capability of main gas pipeline the Middle Asia - Center (MAC), being the shortest international rout for Turkmenian and Uzbek gas through Kazakhstan to Russia and Western Europe, was some 30bn m3 a year. 3939 km of the pipeline are situated in Kazakhstan; total length is 9155 km. Electrolytic protection at lines was badly disturbed and protection of underground lines was less than 70 per cent. Hundreds of km of operating gas lines were disconnected from the general system; gas-pumping units were not repaired. Therefore the company allotted over 230mn USD for repair in 2001-2002.
Now protection of the pipes and underground lines is completely restored. 29 gas-pumping units are repaired. The company is ready to launch a pumping unit at pipelines Orenburg-Novopskov and "Souz", compressor stations "Uralsk" and "Chizha". The company's crews replaced 12 km of pipes and contractors - 20 km. Capability of MAC was increased to 50bn m3 a year thanking to parallel work of two lines at Beineu-Makat part.
For the first time in the last years the company purchased heavy road-building machinery for regional branches. The company continues implementing diagnostics of the most destroyed sections. Managers introduce advanced techniques of repair. For example, this year the company replaces a siphon at passing across the Ural River near "Redut", by applying technique of horizontal-directional drilling under the bottom of the river. This technique is applied in Kazakhstan for the first time; its advantage is preservation of flora and fauna in Ural's flood-lands.
The company reanimates its economy, applies new technologies, gradually restores capital assets and raises capability of the pipeline. According to forecast of specialists, by 2005, when the company will finish repair, annual volumes of transported Turkmen gas through MAC will increase to 50bn m3, Uzbek one - to 3bn m3, and Kazakh one - to 7bn m3.
Cost of the total 10-year modernization of MAC is estimated at 1,3bn USD. In addition, for 2003-2005 the enterprise intends to invest over 500mn USD to modernization of main pipelines. These will be own means of the company plus domestic and foreign investments.
KazTransGas has found principal decision of the problem of gas supply to southern regions of Kazakhstan, which completely depends upon Uzbek gas and its transit through Kyrghyzia. Demand of RK southern regions on gas amounts to 1,5bn m3 annually. In February 2002 the company signed contract with Uztransgas and in 2002 and 2003 purchased gas at 40 USD for a thousand m3.
|After long negotiations in December 2002 the
signed agreement with Kyrghyz side on joint inspection of main pipeline
Tashkent-Bishkek-Almaty situated in Kyrghyzia. Special joint
commission inspected those lines. The examination proved the Kyrghyz
being in very bad condition. One third of pipes need replacement and
re-insulation. Now the companies work out recommendations on repair and
reconstruction of 132 km, including variants of financing. The
is rather serious, so KazTransGas is going to approach the
with proposal to establish a joint RK-Kyrghyzia company.
KazTransGas has always executed terms of
had debts to the Uzbek side and always protected interests of
in the gas market of the region.
Construction of gas wells at Amangeldy field is planned to complete in 2003. 17 wells will be exploited. Three wells are tested, one well is conserved. The fifth well is drilled. 65% of equipment is produced and ready to ship. 2100 tons of pipes and gas pipeline equipment has been delivered. The works are conducted in day and night regime, KazTransGas specialists believe 193-kilometer Amangeldy-Taraz gas pipeline constructed by mid summer of 203. The gas field is expected to launch in upcoming August. The specialists hope 700-million cubic meters of natural gas, 40 thousand tons of condensed gas and the same amount of liquefied gas pumped from Amangeldy field to allow them to resolve gas supply problem southern Kazakhstan has faced.
Moreover, governmental commission presented "KazTransGas" the right to develop hydrocarbons exploration at gas deposits of Moyinkumski and Talasski districts of Zhambyl region. The area of the deposits' territory makes 8 810,7 square kilometers. The work of the company resulted in the trend to stabilize inside republic gas supplying, especially the one of its southern region. In mid ninetieth gas distribution networks of the region appeared in the ownership of different private companies. But their majority faced the problem of nonpayment. It rendered a negative influence upon the state of the networks. The systems sank into degradation. Debts grew. There appeared gas-supplying problems. Bad debtors were cut off.
To resolve all the problems the responsibility for gas supplying of southern regions was laid on KazTransGas. Its affiliate KazTransGas Distribution company was created for the purposes. The enterprise is a wholesale supplier of natural gas to regional consumers. Much was done; the market got free from different intermediate structures, the prices grew stable, discipline of payments improved, technological losses of gas decreased. Everything aforementioned influenced upon the growth of tariffs, there appeared a trend of annual three percent increase in the amounts of gas shipments to internal market. In 2001 the amount made 5,1 billion cubic meters. The same growth in amounts was registered in the first half of 2002.
Work with suppliers and consumers, severed approaches and huge funds invested resulted in obvious successes.
KazTransGas allocated 5 million dollars to restore gas distribution system of Shymkent and repaid the debts of its predecessors. In February of 2002 KazTransGas Distribution started supplying Taraz with gas. At present 75% of the city's private sector are supplied with gas.
In early current year the situation with Aktobe region gas supplying aggravated. The region is known to consume 36% of total amounts of natural gas imported in Kazakhstan. Local enterprise Aktobegas sank in 1,7 billion tenge debts. The region appeared at stake to be cut off gas supplying. On October the 1st KazTransGas Distribution started supplying Aktobe region and the city of Aktobe with gas. Despite of significant debts of population, the company did not cut anyone off.
Successful resolution of current problems and implementation of new promising projects, stable development of the company itself prepared the grounds for its international rating growth. Recently international rating agency Standards and Poor's allocated " BB" crediting rating to KazTransGas group and to Intergas Central Asia company. The forecast of ratings is stable. Such a high rating means the activity of the companies, their places at gas transportation market, stability of their financial state and high trustability recognized.
The fact is strengthening the companies' positions at the negotiations with foreign investors, suppliers, financial institutions. It allows them to count for lower interest rates when attracting local and foreign funds. So, the rating works for the companies. The contracts signed recently with foreign partners showed the work successful.
Amangeldy gas field: Readiness
ASTANA.KAZINFORM. As Kazinform has earlier informed, on these days blue fuel of Amangeldy gas field is to be supplied to Taraz. The final testing of the gas transportation system before launching has been carried out on the fifth compressor station.
This is the very place where the Amengeldy line incises into the main gas pipeline.
According to head of Taraz manufacturing gas pipeline management Nazhentai Bukharbayev, Amangeldy gas has been accepted. The system, which has been transporting gas for many years is absolutely orderly.
|According to the preliminary assessment, the
field gas reserves amount not less than 25 billion cubic meters. From
wells situated on the field there will be supplied up to 1000 900
meters of gas a day. As for the cost of Amangeldy gas, this issue is
in the state of economic working-out.
While Amangeldy complex builders are getting ready for the launch of its first line, the brigades of Kazburgaz-Taraz are opening up new vistas. Out of 13 wells taken for tunneling one is fully ready and three more are to be ready soon.On subcontract terms there has been involved one more organization – Udmurtgeologiya from Russia, which has recently delivered its machine, assembled it and started well tunneling. The front of drilling works is been enlarged.
Amangeldy Gas Production Train Starts Operations
On October 23 president Nazarbayev inaugurated the first production line at the Amangeldy gas field (Zhambyl oblast), Interfax reported.
The ceremony marked the end of the first stage of field development, with completion of five of seventeen gas wells, a gas treatment plant, and construction of a 193-kilometer pipeline connecting Amangeldy field with the Bukhara -Tashkent-Bishkek- Almaty gas pipeline in area of Taraz. The second development phase (timeline not mentioned) will include bringing on line there remaining twelve wells and completion of all associated infrastructure.
|The second-phase capacity of 1.93 Million
a day will supply the
Zhambyl power plant, the Zhambyl energy combine, local chemical plants, and other industries in the region.
The development of Amangeldy will cost usd 131 million, with usd 51 million coming from the national budget and the remaining usd 80 million provided by Kaztransgaz and other investors.
Amangeldy field holds 22.4 Billion cubic meters of gas and is expected to produce 600 million - 1 billion cubic meters of gas a year for twenty years at a cost of usd 22 per 1,000 cubic meters. (Interfax - Kazakhstan, October 30)
Development of new gas field
The gas transport company KazTransGas has started developing the new Amangeldy gas field (AGF). The Amangeldy field is located in the south of Kazakhstan, 160 km from Taraz city. Preliminary estimates of AGF's reserves are about 25 billion cubic meters of gas. The field is thought to be capable of at least 12-13 years of profitable production.
The field is in a good location. The
of the field will allow energy independence for region of Southern
the most densely populated region of the country, through connection of
the new Amangeldy-Taraz main gas pipeline to the Gazli-Almaty
Today the government remains the first and the
For the first phase, the development will minimally cost USD 76.7 million. This amount includes construction of the gas pipeline (USD 36.7 million), drilling and servicing wells (USD 21 million), construction of a gas processing plant (USD 10 million) and miscellaneous expenses (USD 9 million).
The second phase may require USD 258 million. This includes further development, internal pipelines, processing and further prospecting drilling. ABN-AMRO Bank, Citibank, Islamic Bank for Development as well as some Kazakh banks have expressed interest in development of the field. The total number of companies that expressed interest in the project is 30.
U.S. Companies interested in the project of
field may contact KazTransGas directly as shown below:
142 Bogenbay Batyra Almaty 480091, Kazakhstan Tel.:  (3272)
66-11-30 Fax:  (3272) 58-82-80 E-mail: Administrator@Kaztransgas.kz
Contact: Aydarhan Kusainov, Vice-President U.S. EMBASSY
INFORMATION U.S. Embassy Commercial Service Almaty,
531 Seyfullin Street, 3d Floor Almaty 480091, Kazakhstan Tel.: 
58-79-18, 58-79-20 Fax:  (3272) 58-79-22 E-mail:
Contact: James Fluker, Senior Commercial Officer Rita Kan, Commercial
Andrey Chursov, BISNIS Representative
ExxonMobil Kazakhstan Participates in Two North Caspian Discoveries
NOV 24,2003 ( BW)(TX-EXXON-MOBIL-CORP)(XOM) IRVING, Texas--(BUSINESS WIRE)
Exxon Mobil Corporation (NYSE:XOM) today announced that its subsidiary, ExxonMobil Kazakhstan Inc., has participated in two discoveries in new prospects on the North Caspian Production Sharing Agreement (NCPSA) contract area.
The first exploration wells on each of the Aktote and Kashagan Southwest prospects were completed successfully and encountered hydrocarbon-bearing intervals. Additional evaluation will be required to determine if the hydrocarbon accumulations are commercially viable.
Aktote-1 and Kashagan Southwest-1 are the third and fourth discoveries on the NCPSA following Kashagan and Kalamkas. The world-class Kashagan discovery was announced in 2000 and declared commercial in June 2002 with estimated resources of more than nine billion barrels of oil.
|The drilling of Aktote-1 was carried out on
island. The well was drilled to a total depth of 14,000 feet (4,267
and was tested at a rate of 1,550 barrels per day on a 28/64-inch choke.
Drilling of Kashagan Southwest-1 was also performed on an artificial island. The well was drilled to a total depth of 19,275 feet (5,875 meters) and was tested at a rate of 2,100 barrels per day on a 32/64-inch choke.
"The Aktote and Kashagan Southwest discoveries provide further encouragement that the North Caspian can become an important resource base to help supply the world's growing energy demands," said Jon Thompson, president of ExxonMobil Exploration Company.
The North Caspian PSA covers almost 1.4 million gross acres. Companies involved in exploration and development of this area are Eni (Operator - 16.67 percent), ExxonMobil (16.67 percent), BG (16.67 percent), Inpex (8.33 percent), Phillips (8.33 percent), Shell (16.67 percent), and Total (16.67 percent). Upon completion of the sale of BG International's interest in the NCPSA, ExxonMobil's interest will become 20.37 percent. In addition, ExxonMobil affiliates have a 25 percent interest in the Tengiz field, one of the world's largest oil fields, located on the Eastern shore of the Caspian Sea, and a 7.5 percent interest in the Caspian Pipeline Consortium.
Tengizchevroil exported about 170,000 bbl/d of crude oil in 1999 through the Russian pipeline system; by barge and rail to the Baltic; and by ship, pipeline, and rail to the Black Sea. Tengizchevroil also is considering use of the Tengiz-Aktau pipeline, which underwent a $100-million upgrade in 2000 that increased the pipeline's export capacity from 60,000 bbl/d to 160,000 bbl/d. The March 2001 opening of the Caspian Pipeline Consortium's 990-mile pipeline from the Tengiz oil field to the Russian Black Sea port of Novorossiisk will allow Kazakhstan to boost its oil exports substantially. The pipeline's capacity, initially 140,000-160,000 barrels per day (bbl/d), eventually will increase to 1.34-million bbl/d.
Kazakhstan projects that its crude oil and gas
production will rise to almost 800,000 bbl/d in 2001. Most of the
will be provided by the Tengizchevroil venture, the Karachaganak gas
field consortium, and from new fields coming on stream: North Buzachi,
Sazankurak, Saztobe, Airankol, and others. By 2002, Kazakhstan plans to
have other major fields on stream: Alibekmola, Urikhtau, and Kozhasai.
In addition, preliminary drilling in the offshore Kashagan block by the
Offshore Kazakhstan International Operating Company (OKIOC) has turned
up spectacular results, with analysts estimating possible oil reserves
of up to 40 billion barrels (10 billion barrels of which are thought to
be recoverable). Although the OKIOC is being very tight-lipped about
potential output, oil analysts already are hailing the field as the
oil discovery in 30 years, bringing fresh optimism to the Caspian Sea
oil supply potential.
Development of the country's Kashagan oilfield and construction of additional export pipelines in the coming decade could make Kazakhstan one of the world's largest oil producers and exporters. In February 2001, Italy's ENI SpA won a fiercely-contested battle to be the operator for the Kashagan field. Kazakhstan expects that the first oil from the field, which OKIOC is still exploring, will flow in 2005. However, in mid-April 2001 the Kazakh Ministry of Natural Resources & Environmental Protection temporarily suspended drilling in the Kashagan block after two recent oil spills.
Kazakhstan needs to resolve two major issues in order for it to increase oil production further. Development of the offshore potential of Kazakhstan in the Caspian Sea has been slowed by a dispute over ownership rights. This disagreement ties in with a broader debate between Caspian Sea Region states over how the Caspian Sea should be treated under international law (including environmental issues). In 1997, Kazakhstan signed a communique with Turkmenistan pledging to divide their sections of the Caspian along median lines, and in July 1998 Kazakhstan signed a bilateral agreement with Russia (not yet ratified) dividing the northern Caspian seabed along median lines between the two countries. Both of these agreements are interim until the status of the Caspian Sea is settled among all of the littoral states. In April 2001, a planned summit of the Caspian littoral heads of state was postponed for the second time in a month.
The other major issue is the development of export routes to bring Kazakhstan's oil to world markets. In addition to the CPC pipeline, several additional oil export pipeline routes from the Caspian Sea region are under consideration or in development. Kazakhstan had net exports of approximately 473,000 bbl/d of crude oil and and condensate in 2000. The majority was shipped by pipeline, mainly via the Atyrau-Saransk-Samara pipeline through Russia, with additional supplies shipped by rail and by barge across the Caspian Sea. In March 2001, Kazakh President Nursultan Nazarbayev appeared to give Kazakhstan's support to the Baku (Azerbaijan)-Ceyhan (Turkey) Main Export Pipeline, saying that the first oil from the giant Kashagan field would go to the pipeline, which is slated to begin construction in the summer of 2001 and be ready by September 2004. However, Kazakhstan has not officially pledged its support for the pipeline, preferring to keep its export options open.
Under the former Soviet Union, Kazakhstan's pipeline network was integrated with the Russian pipeline system, and all of Kazakhstan's oil was exported through the Russian pipeline system. Kazakhstan's oil production is concentrated in the West, and two export pipelines transport this oil to refineries and export pipelines in Russia. However, Kazakhstan's urban and industrial centers are concentrated in the East, and because they are not connected to the production centers, they must import oil via an oil pipeline from Siberia. As a result, Kazakhstan's pipeline system is fragmented, consisting of the two export pipelines in the West, the import pipeline in the East, and a smaller internal line in the South.
Kazakhstan has three major oil refineries supplying the northern region (at Pavlodar), western region (at Atyrau), and southern region (at Shymkent), with total refining capacity of 427,000 bbl/d. The refinery at Pavlodar is supplied mainly by a crude oil pipeline from Western Siberia, the Atyrau refinery runs solely on domestic crude from northwest Kazakhstan, and the Shymkent refinery currently uses oil from Kazakh fields at Kumkol, Aktyubinsk, and Makatinsk, but utilization is only 60% because it is unable to process other oils.
Since their pipeline networks are interconnected, Russia and Kazakhstan plan to swap 50,000 bbl/d of oil. Kazakhstan will deliver oil to Russian refineries on the Atyrau-Samara pipeline and Russia will deliver oil on the Omsk-Pavlodar pipeline for processing at Kazakh refineries. In addition, Kazakhstan and Iran are poised to begin a swap system whereby Kazakhstan would send its crude oil by ship to the Iranian port of Neka, where it would travel by pipeline to a refinery at Tabriz to be refined and consumed locally. In exchange, Kazakhstan would receive the same volume ready for export at an Iranian port in the Persian Gulf. Kazakhstan and Iran signed an agreement in 1996 under which Kazakhstan must swap up to 120,000 bbl/d through Iran by 2006.
NATURAL GAS (more)
Iran has been involved in a border dispute with Kuwait and Saudi Arabia over demarcation of the border through the northern Gulf continental shelf. This region contains the 7-13-Tcf Dorra natural gas field, which Iran had begun drilling in early 2000 but stopped after complaints by Kuwait. Saudi Arabia and Kuwait (which do not recognize Iran's claims to Dorra) signed a bilateral agreement in July 2000 on dividing up the field equally between the two countries. In early 2002, there were reports that Saudi Arabia and Kuwait were planning to develop Dorra even without an agreement with Iran.
The dual Aghar-Dalan field development has been one of National Iranian Gas Company's recent successful natural gas utilization projects. Since coming online in mid-1995, the Aghar and Dalan fields have produced approximately 600 Mmcf/d and 800 Mmcf/d, respectively. Natural gas from both fields is processed at a $300 million facility at the Dalan field, which is also the location of a 40-MW, natural-gas-fired power plant. Most of the treated natural gas from the Dalan processing plant is carried through a 212-mile pipeline for re-injection in the Marun field and other oil fields in Khuzestan province.
Natural Gas Trade (more)
Although India and Iran in 1993 signed an MOU on an overland natural gas pipeline, regional political and security concerns to date have blocked completion of a feasibility study. Meanwhile, in February 2002, Iran and Pakistan signed an MOU on a pre-feasibility study for a possible 1,600-mile, $4 billion gas pipeline from southern Iran to southeastern Pakistan and on to India. An offshore route bypassing Pakistan is under study by Snamprogetti of Italy, but this could prove to be far too expensive to be feasible. Another possibility would involve LNG exports to India. In January 2003, the leaders of Iran and India signed an MOU on energy cooperation, including the LNG option.
Besides natural gas exports, Iran also has discussed importing natural gas from Azerbaijan, and already imports some natural gas from Turkmenistan. This natural gas is for use in Iran's northern areas, far from the country's main natural gas reserves in the south. In December 1997, Turkmenistan launched the $190 million Korpezhe-Kurt Kui pipeline to Iran, the first natural gas export pipeline in Central Asia to bypass Russia. ccording to terms of the 25-year contract between the two countries, Iran will take between 177 Bcf and 212 Bcf of natural gas from Turkmenistan annually, with 35% of Turkmen supplies allocated as payment for Iran's contribution to building the pipeline.<>In December 2001, the presidents of Turkmenistan and Armenia reached an agreement by which Turkmenistan will supply up to 70.6 Bcf per year of natural gas to Armenia via the Korpezhe-Kurt Kui pipeline and across Iran. Implementation of this deal is contingent on the construction of a long-delayed Iran-Armenia natural gas pipeline (in December 2001, Iran and Armenia signed a deal to build this line at a cost of around $120 million).
This decline is significant because coal accounted for about half of all primary energy consumption in Kazakhstan during 1991-1999. In addition, net exports to other former Soviet republics declined by two-thirds from 1991 to 1995 before beginning a modest recovery from 1996 to 2000. This decline in markets forced a severe cut in both coal production from Karaganda, which has a number of underground mines that produce high-quality coking coal. The high cost of extraction, combined with the drop in demand, forced a number of mines to close between 1991 and 1997. However, mines in Ekibastuz, the largest-producing area in Kazakhstan and the third largest coal basin in the former Soviet Union, have remained open and competitive because several mines have been largely privatized.
After nearly a decade of decline, Kazakh coal production is expected to increase in 2001. Kazakh Minister for Energy and Natural Resources Minister Vladimir Shkolnik said in January 2001 that Kazakhstan plans to produce up to 80.5 Mmst of coal in 2001. Preliminary data for 2000 show that the country's production increased 75 Mmst, nearly a 17% increase over 1999. According to Kazakh officials, the Vostochny opencast mine produced 10.6 Mmst of coal in January-September 2000 (against 7.6 Mmst in the same period of 1999, an increase of 39%). In the first two months of 2001, the Vostochny mine produced 3.7 Mmst of coal, a 35.4% increase more than in the same period of 2000. In addition, Bogatyr Access Komir (BAK) reported producing 35.8 Mmst of coal in 2000, 23.1 Mmst at the Bogatyr strip mine (35% more than in 1999) and 12.7 Mmst at the Severny strip mine (20% more than 1999). BAK said its 2001 coal production is slated to rise by 20%, thanks to further expansion at the Bogatyr mine.
Despite a drop in net exports, Kazakhstan is still the largest exporter of coal to the other former Soviet republics, accounting for almost half of the coal shipments among the republics. Russia remains the largest recipient of Kazakh coal, followed by Ukraine. The Russian utilities Sverdlovskenergo and Chelyabenergo are major consumers of sub-bituminous coal from the Ekibastuz basin, and Sverdlovskenergo likely will continue to import coal from Kazakhstan since it acquired two Kazakh mines in 1996 as payment for unpaid debts for power supplied to Kazakhstan. In March 2001, Russia announced plans to import at least 30 Mmst to 40 Mmst of coal from Kazakhstan per year, possibly more, depending on the scale of Russia's economic growth.
Kazakhstan also has arranged to export coal to Kyrgyzstan. In November 2000, the two countries agreed that Kazakhstan would provide Kyrgyzstan with 50,000 tons of coal and other fuel supplies before the end of 2000 in return for 650 million kilowatt-hours of electricity from Kyrgyzstan in the spring of 2001.
Kazakhstan's power generation and consumption have both been on the decline since the country received its independence in 1991. From a 1992 level of 86.2 billion kilowatt-hours (Bkwh), Kazakhstan's electricity consumption dropped to 44.1 Bkwh in 1999, primarily due to a drop in demand from the industrial sector as output fell in the wake of the collapse of the Soviet Union. Kazakhstan's power generation also has experienced an annual decline since independence--the country's total 1999 generation of 44.4 Bkwh was only 56% of its 1992 level of 78.6 Bkwh.
Kazakhstan has 54 fossil-fuel powered plants, five hydroelectric power stations, and a nuclear plant at Aktau. Much of Kazakhstan's generating equipment is old, inefficient, and lacking in modern pollution controls. Kazakhstan's industrialized north consumes about 70% of the country's electricity, and most of Kazakhstan's electricity is generated by coal-fired plants concentrated in the North that burn a dirty, high-ash coal.
Due to its vast, sparsely populated land area, Soviet planners developed Kazakhstan's electricity transmission and distribution system to connect to separate networks: to the Russian network in the North (to Siberian Russia) and northwest (to European Russia), and to the Central Asian network in the South (Kyrgyzstan and Uzbekistan). Following independence, state-run Kazakhstanenergo inherited responsibility for operating the country's deteriorating electricity sector and its separate networks. As part of Kazakhstan's move to a market-based economy, in July 1997 Kazakhstanenergo was divested of its power generation facilities and renamed the Kazakhstan Electricity Grid Operating Company (KEGOC). Kazakhstan has proceeded with privatization of power plants and regional electricity distribution companies in an effort to reform the power sector.
Although Kazakhstan now technically generates enough electricity to meet its demand, the country has suffered from frequent power shortages since 1992 due to the sector's deteriorating infrastructure. The separation of networks means that Kazakhstan is both an exporter and importer of electricity in accordance with regional needs. KEGOC works with UES (Russia) in the western and northern parts of Kazakhstan and with the national energy companies of Kyrgyzstan, Turkmenistan, Tajikistan, and Uzbekistan in the South. Imports from Russia and Kyrgyzstan account for over 10% of domestic consumption, with Uzbekistan also exporting small amounts of power to Kazakhstan. Payment for imported power has been an issue, and both Russian and Kyrgyz suppliers have cut power several times due to unpaid bills. In addition, in November 2000, Kazakhstan's Supreme Court found KEGOC guilty of violating customs rules and fined the company more than $2 million for the transit of undeclared electricity from Russia in 1999.
In order to reduce its dependence on expensive, imported electricity supplies, Kazakhstan has made plans to construct five new combined heat and power stations: the 150-MW Uralskaya TETS, the 450-MW Aktyubinskaya TETS, the 300-MW Mainakskaya GES, the 1,280-MW Yuzhno-Kazakhstanskaya TETS, and the 500 MW Zapadno-Kazakhstanskaya TETS-1. In addition, AES (U.S.) expects to get $30 million from the EBRD to reconstruct and modernize the Ust-Kamenogorsk hydroelectric and heat and power plants and the Shulba hydroelectric plant. Also, a Kazakh-Russian joint venture was set up at Ekibastuz State Regional Power Station 2 in Pavlodar region, where one 350-MW generator is operational and a second was scheduled to be overhauled. The projected capacity of each of the generators is 500 MW.
Kazakhstan had planned to build a new nuclear power station near Lake Balkash, with three units of 640 MW each, but in September 2000 the Kazakh government rejected the blueprints and shelved the project, citing cost and safety concerns, as well as public opinion opposed to the nuclear plant. Nevertheless, Prime Minister Kasymzhomart Tokayev noted that it is necessary "that the public gets used to the idea" of the importance of developing Kazakh nuclear power engineering as a cleaner alternative to coal-generating power plants.
President: Nursultan Nazarbayev (chairman of the Supreme Soviet from February 22, 1990; elected president December 1, 1991; re-elected to a seven-year term on January 10, 1999)
Prime Minister: Kasymzhomart Tokayev (since October 2, 1999)
Independence: December 16, 1991; National holiday: Day of the Republic October 25, 1990 (date on which Kazakhstan declared its sovereignty)
Population (7/00E): 16.7 million
Location: Central Asia, bordering the Caspian Sea, Russia, Turkmenistan, Uzbekistan, Kyrgyzstan, and China
Size: 1,052,100 sq. miles (slightly less than four times the size of Texas)
Major Cities: Almaty; Astana (capital, moved from Almaty in December 1998); Karaganda; Shymkent
Languages: Kazakh (Qazaq, state language), Russian (official, used in everyday business)
Ethnic Groups (1996E): Kazakh (Qazaq) 46%, Russian 34.7%, Ukrainian 4.9%, German 3.1%, Uzbek 2.3%, Tatar 1.9%, other 7.1%
Religion: Muslim 47%, Russian Orthodox 44%, Protestant 2%, other 7%
Minister of Finance: Mazhit Yesenbayev
Minister of Economy & Trade: Zhaksibek Kulekeyev
Market Exchange Rate (4/30/2001): US $1=145.8 Tenge
Nominal Gross Domestic Product (GDP) (2000E): $18.3 billion; (2001E): $19.8 billion
Real GDP Growth Rate (2000E): 9.6%; (2001E): 5.5%
Inflation Rate (Change in Consumer Prices, Dec. 1999-Dec. 2000E): 9.8%; (2001E): 8.0%
Official Unemployment Rate (2000E):3.7%
Current Account Balance (2000E): $1.25 billion
; (2001E): $1.04 billion
Major Trading Partners: Russia, Ukraine, U.S., Uzbekistan, Turkey, U.K., Germany, South Korea, China
Merchandise Exports (2000E): $9.8 billion; (2001E): $10.9 billion
Merchandise Imports (2000E): $7.7 billion; (2001E): $9.0 billion
Merchandise Trade Balance (2000E): $2.1 billion; (2001E): $1.9 billion
Major Exports: oil, ferrous and nonferrous metals, machinery, chemicals, grain, wool, meat, coal
Major Imports: machinery and parts, industrial materials, oil and gas, vehicles
Gold and Foreign Exchange Reserves (2000E): $2.1 billion
External Debt (12/00E): $12.3 billion
Minister of Energy & Natural Resources: Vladimir Shkolnik
Chairman, Kazakhoil National Oil & Gas Company: Nurlan Balgimbayev
Proven Oil Reserves (2000E): 10.0-17.6 billion barrels
Oil Production (2000E): 693,000 bbl/d, of which 598,000 bbl/d is crude oil; (2000E): 771,000 bbl/d
Oil Consumption (2000E): 220,000 bbl/d
Net Oil Exports (2000E): 452,000 bbl/d
Crude Oil Refining Capacity (1/1/2001E): 427,000 bbl/d
Natural Gas Reserves (2000E): 65-70 trillion cubic feet
Natural Gas Production (1999E): 162 billion cubic feet (Bcf)
Natural Gas Consumption (1999E): 480 Bcf
Net Natural Gas Imports (1999E): 318 Bcf
Coal Reserves (1999E): 37.5 billion short tons, of which 34.2 billion is anthracite and bituminous
Coal Production (1999E): 64.2 million short tons (Mmst); (2000E): 75 Mmst
Coal Consumption (1999E): 39.5 Mmst
Electric Generation Capacity (1999E): 17.4 gigawatts
Electricity Generation (1999E): 44.4 billion kilowatt-hours (Bkwh)
Electricity Consumption (1999E): 44.1 Bkwh
Minister of Natural Resources & Environmental Protection:Andar Shukputov
Total Energy Consumption (1999E): 1.5 quadrillion Btu* (0.4% of world total energy consumption)
Energy-Related Carbon Emissions (1999E): 26.6 million metric tons of carbon (0.4% of world total carbon emissions)
Per Capita Energy Consumption (1999E): 97.5 million Btu (vs U.S. value of 355.8 million Btu)
Per Capita Carbon Emissions (1999E): 1.7 metric tons of carbon (vs U.S. value of 5.5 metric tons of carbon)
Energy Intensity (1999E): 58,392 Btu/ $1990 (vs U.S. value of 12,638 Btu/ $1990)**
Carbon Intensity (1999E): 1.1 metric tons of carbon/thousand $1990 (vs U.S. value of 0.19 metric tons/thousand $1990)**
Sectoral Share of Energy Consumption (1998E): Industrial (52.6%), Transportation (41.8%), Residential (5.5%), Commercial (0.0%)
Sectoral Share of Carbon Emissions (1998E): Industrial (56.3%), Transportation (38.1%), Residential (5.6%), Commercial (0.0%)
Fuel Share of Energy Consumption (1999E): Coal (29.9%), Oil (29.5%), Natural Gas (34.5%)
Fuel Share of Carbon Emissions (1999E): Coal (40.8%), Oil (32.0%), Natural Gas (27.3%)
Renewable Energy Consumption (1998E): 66 trillion Btu* (6% decrease from 1997)
Number of People per Motor Vehicle (1998): 12.2 (vs U.S. value of 1.3)
Status in Climate Change Negotiations: Non-Annex I country under the United Nations Framework Convention on Climate Change (ratified May 17th, 1995). Signatory to the Kyoto Protocol (March 12th, 1999).
Major Environmental Issues: Radioactive or toxic chemical sites associated with its former defense industries and test ranges are found throughout the country and pose health risks for humans and animals; industrial pollution is severe in some cities; because the two main rivers which flowed into the Aral Sea have been diverted for irrigation, it is drying up and leaving behind a harmful layer of chemical pesticides and natural salts; these substances are then picked up by the wind and blown into noxious dust storms; pollution in the Caspian Sea; soil pollution from overuse of agricultural chemicals and salination from faulty irrigation practices.
Major International Environmental Agreements: A party to Conventions on Biodiversity, Climate Change, Desertification, Endangered Species, Ozone Layer Protection, Ship Pollution.
* The total energy consumption statistic includes petroleum, dry
gas, coal, net hydro, nuclear, geothermal, solar and wind electric
The renewable energy consumption statistic is based on International
Agency (IEA) data and includes hydropower, solar, wind, tide,
solid biomass and animal products, biomass gas and liquids, industrial
and municipal wastes. Sectoral shares of energy consumption and carbon
emissions are also based on IEA data.
**GDP based on EIA International Energy Annual 1998
Organization: Kazakhoil National Oil and Gas Company; KazTransOil (state oil pipeline company); KazTransGaz (state natural gas pipeline company); Kazakhstanugol Corporation (state coal company); Kazakhstan Electricity Grid Operating Company (KEGOC)
Major Oil and Gas Fields: Tengiz (mostly oil), Karachaganak (mostly gas), Kashagan (oil), Uzen, Korolev, Tenge, Uritau (gas), Zhanazhol
Major Oil Ports: Atyrau and Aktau on the Caspian Sea
Oil Export Pipelines: Tengiz-Novorosiissk (Russia); Uzen-Atyrau-Samara (Russia); Kenkyak-Orsk (Russia) line that transports oil from the Aktyubinsk fields to the Orsk refinery
Major Oil Refineries (crude oil refining capacity): Pavlodar (162,666 bbl/d); Atyrau (104,427 bbl/d); Shymkent (160,000 bbl/d)
Major Power Plants (capacity): Ekibastuz No.1 (4,000 megawatts, MW), Yermak (2,400 MW), Dzhambul (1,230 MW)