Kazakhstan: local players snap up more oil and gas blocks

Kazakhstan authorities have had success to find new house owners for 16 of the 17 blocks auctioned on the finish of July.

The public sale attracted a substantial amount of curiosity from bidders, regardless of questions over the soundness of the nation’s fundamental oil export artery — the Caspian Pipeline Consortium — and the potential want to speculate billions of {dollars} into constructing different transport routes to China and Azerbaijan.

With a inhabitants of about 19 million folks, Kazakhstan processes only a small share of its produced oil, with the remaining flowing to export locations in Europe and elsewhere — with Russia appearing as a transit nation — whereas some output is shipped to China.

Based on the Kazakh Power Ministry, the auctions ended up with bidders from Kazakhstan considerably overpaying the property’ beginning value to win exploration and growth licences, with complete revenues reported at 21.1 billion tenge (US$45 million).

Virtually 19% of that quantity, or about 4 billion tenge, was provided for the Kamenistoye oilfield within the Kazakh oil province of Mangistau.

Based on Kazakh trade community social networking channel, Power Monitor, the asset ended up within the palms of Vostok Power-A, a privately held firm that’s managed by three Kazakh nationals.

The sector that was found within the early Nineteen Eighties, lies subsequent to a big oil asset Zhetybay, within the Mangistau area, which is being developed by state-owned oil and fuel producer KazMunayGaz.

One other main asset within the area, the Shalva area, was awarded to Goal Union.

Power Monitor mentioned that Vostok Power-A and Goal Union are managed by businessmen which can be concerned in safety companies enterprise within the nation’s former capital Almaty.

In the meantime, three blocks within the providing landed with Tumar Petrol, a subsidiary of Kazakhstan’s rapidly rising newcomer Kusto Oil, which is integrated in Singapore.

Kusto Oil is part of Kusto Group that was based by Kazakh businessman Yerkin Tatishev and claims to function in numerous different markets moreover the nation’s oil and fuel sector.

Power Monitor additionally famous that one of many property in public sale — the Pribrezhnoye oilfield in one other main oil province, Atyrau — went to a beforehand unknown participant, Kazakh-registered Nitsk Dzhuman that has been reported as being owned by a Chinese language nationwide.

Earlier in July, the Power Ministry eliminated 23 blocks from the providing that was initially revealed in April, apparently seeing decrease than anticipated curiosity from buyers.

Oil export jitters

Following the Western sanctions imposed on Russia for its invasion of Ukraine in February, Kazakhstan has developed points with the soundness of oil export shipments by way of two of its transit routes by way of Russia — the Caspian Pipeline Consortium and a legacy hyperlink to the Russian Atyrau–Samara trunkline community.

Caspian Pipeline Consortium, which handles nearly 80% of Kazakh oil exports, barely escaped one other halt in oil tanker loadings at its terminal close to the Russian Black Sea port of Novorossiysk on the finish of July.

On 27 July, energy provides had been reduce to 2 Caspian Pipeline Consortium pumping stations in Kazakhstan — Kurmangazy and Isatay — with authorities citing robust winds and thunderstorms because the trigger.

The facility to the stations was solely restored two days later, in line with the operator.

Earlier in July, Caspian Pipeline Consortium barely escaped the halt of tanker loadings after Russian transportation security watchdog Rostransnadzor instantly demanded the operator droop its operations, following a routine verify.