Kazakhstani oil and gas industry: overviewindustry: overview

Maulen NamazbekovMaulen NamazbekovCo-chairman of Coordinating Committee on EITI, KAZENERGY Association,

Director of Energy Focus LLP

Proven oil reserves –within 5.5 billion tones orwithin 5.5 billion tones or 39.8 billion barrels

Estimated oil reserves –more than 17 billion tones or 124 3 billiontones or 124.3 billion barrels

2

Main Carbohydrate Reserves of Kazakhstan

0,6 million ttones

3,8 million tones2,8 million tones

6,7 million tones

,

0,03 billion м3

3

Kashagan

4

Oil and unstripped gas: Kazakhstan

Oil production:Oil production:2010 – 70 million tons per year;p y2015 – 110 million tons.

Production of unstripped gas:Production of unstripped gas:2010 – 40 billion cubic meters;;2015 – up till 70 billion cubic meters.

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Growth of Kazakhstani oil production volume

Growth of Kazakhstani oil production volume isGrowth of Kazakhstani oil production volume isclosely tied to two factors:

Firstly, considerable increase in foreigninvestments: in particular direct foreigninvestments: in particular, direct foreigninvestments into oil producing industry.

Secondly, favorable carbohydrate marketconditions in the world exercise considerableinfluence on situation of oil industry in Kazakhstani economy.

6

y

Major oil refinery plants - 1

Pavlodar Refinery Plant

Atyrau Refinery Plant

Shymkent Refinery Plant

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Major oil refinery plants - 2

Pavlodar is the most complex refinery, relying on oil supplied from Russiaproduces gasoline jet/kero diesel fuel oil LPG coke and bitumen– produces gasoline, jet/kero, diesel, fuel oil, LPG, coke, and bitumen

– produces more than 40% of the high octane gasoline in Kazakhstan, of which it sells a large share in Russia

Shymkent, least complex, with 90% of oil from area’s Kumkol fields, 10% Russia– produces diesel, gasoline, vacuum gasoil (VGO), jet/kero and LPG– located in proximity to Almaty market– supplies fuel oil to China Kyrgyzstan Afghanistansupplies fuel oil to China, Kyrgyzstan, Afghanistan

Atyrau, close to production in the westd f l il di l li il k LPG d j /k– produces fuel oil, diesel, gasoline, vacuum gasoil, coke, LPG and jet/kero

– Produces 40,000 b/d of winter & summer diesel– Can refine high sulfur oil from Tengiz & other fields

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g g

Main export routes of the Kazakhstan oil

RUSSIAПриморск

Бутинге

1a

At S

POLANDGERMANY

БЕЛАРУСЬ

UKRAINE KAZAKHSTAN1

БутингеЛИТВАГданьск

Кенкияк А ас

Астана Atasu-Alashankou

CPCБроды

Плоцк

8.3

Atyrau-Samara

Самара1b

BLACK SEA

ROMANIA2

3

UZBEKISTAN

Атырау

Актау

BULGARIA

Новороссийск

Махачкала

Одесса

Супса Курык

ЕскенеКенкияк

Кумколь

Кашаган Тенгиз

Атасу

Алашанькоу

CPC

Б

Констанца

1c1d

8.3

4

IRAN

TURKEYCHINA

UZBEKISTAN

TURKMENISTANБаку

Нека

Джейхан

КурыкБургас

Александруполис

Самсун

Влера

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Baku – Tbilisi -Cayhan

•4 – Aktau port• Baku• Mahachkala

•4 – Aktau port• Baku• Mahachkala

1 – Atyrau - Samara1a – Baltic Pipeline system1b – Druzhba

1 – Atyrau - Samara1a – Baltic Pipeline system1b – Druzhba

• Neka

•4 – Atasu –Alashankou

• Neka

•4 – Atasu –Alashankou

1b Druzhba1c – Throw Odessa1d – throw Novorossiysk

2 – Caspian Pipeline Consortium

1b Druzhba1c – Throw Odessa1d – throw Novorossiysk

2 – Caspian Pipeline Consortium

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•5 – Baku – Tbilisi -Cayhan•5 – Baku – Tbilisi -Cayhan

2 Caspian Pipeline Consortium

3 – Atasu - Alashankou

2 Caspian Pipeline Consortium

3 – Atasu - Alashankou

•Caspian Pipeline Consortium Project

YuzhnayaOzerevka

YuzhnayaOzerevka

RUSSIA KAZAKHSTANYuzhnayaOzerevka

YuzhnayaOzerevka

RUSSIA KAZAKHSTANOzerevka

T i

CASPIAN SEA

Ozerevka

T i

CASPIAN SEA

TengizTengizCPC

pipelineCPC

pipeline

BLACK SEA TengizTengizCPC

pipelineCPC

pipeline

BLACK SEA

Designed throughput capacity of the Initial Construction Project– 28.2 mln. tons annually Current throughput capacity – over 30 mln tons annually (thanks to using AFP) Current throughput capacity – over 30 mln. tons annually (thanks to using AFP) Since the beginning of operation (2001) 144.7 mln. tons have been transported, incl. 32.9 mln. tons – during

2007 Designed capacity of the CPC Expansion Project – 67 mln. tons annually (incl. the Kazakh oil - 50 mln. tons) Currently, the shareholders acknowledge the necessity to increase cost efficiency through restructuring y g y y g g

CPC’s debt prior to implementation of the CPC Expansion Project In 2007, the shareholders made key decisions for implementation of the CPC Expansion Project:

increase of the tariff to $38 reduction of the interest rate on the debt to the shareholders to 6% i i th M d E i b th d f 2008 signing the Memorandum on Expansion by the end of 2008

“Kazakhstan-China” Oil Pipeline Project

Kenkiyak AtasuKenkiyak

Atyrau

K k lKumkol

Alashankou

АЛМАТЫАЛМАТЫ

• Atasu-Alashankou Section •Kenkiyak-Kumkol SectionAtasu Alashankou Section Throughput capacity: 10 mln. tons annually Length: 962 km Completion of construction - 2005

Kenkiyak Kumkol Section Throughput capacity: 10 mln. tons annually Length: 761 km Completion of construction - 2009

• 2006-2007 –6.1 mln. tons pumped• Forecast for 2008 – 5.7 mln. tons

Major projects in terms of developing oil transit

RUSSIAПриморск

Бутинге

POLANDPOLAND

БЕЛАРУСЬ

UKRAINEKAZAKHSTAN

БутингеЛИТВАГданьск

Кенкияк А ас

АстанаKenkiyak - KumkolБроды

Плоцк

Самара

BLACK SEA

РУМЫНИЯ

KAZAKHSTAN

Узбекистан

Атырау

Актау

БОЛГАРИЯ

Новороссийск

Махачкала

Одесса

Супса Курык

ЕскенеКенкияк

Кумколь

Кашаган Тенгиз

Атасу

Алашанькоу

Yeskene - Kuryk

6 7

Б

Констанца8.1

8.3

TURKEYCHINA

Узбекистан

TURKMENISTANБаку

Нека

Джейхан

Курык

KCTS

Бургас

Александруполис

Самсун

Влера 8.2

IRANСРЕДИЗЕМНОЕ МОРЕ

6 – Kazakhstan Caspian Transportation System(Yeskene-Kuryk-Baku-Tbilisi-Cayhan)

6 – Kazakhstan Caspian Transportation System(Yeskene-Kuryk-Baku-Tbilisi-Cayhan)(Yeskene Kuryk Baku Tbilisi Cayhan)

7 – Kenkiyak - Kumkol8.1 – Burgas - Alexandroupolis8.2 – Samsun - Cayhan8.3 – Odessa - Brody

(Yeskene Kuryk Baku Tbilisi Cayhan)7 – Kenkiyak - Kumkol8.1 – Burgas - Alexandroupolis8.2 – Samsun - Cayhan8.3 – Odessa - Brody

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8.3 Odessa Brody8.3 Odessa Brody

Kazakhstan-Caspian Transportation System Project

Yeskene

Yeskene-KurykL = 739 kmTh h t it 23 ÷Throughput capacity: 23 ÷35/56 mln. t. annually

Kuryk

Baku

Ceyhan

•• KazMunayGas and Azerbaijani SOCAR signed Memorandum of Cooperation onKazMunayGas and Azerbaijani SOCAR signed Memorandum of Cooperation onKazMunayGas and Azerbaijani SOCAR signed Memorandum of Cooperation on KazMunayGas and Azerbaijani SOCAR signed Memorandum of Cooperation on the project in 2007. the project in 2007.

•• KCTS will be put on stream in 2012. KCTS will be put on stream in 2012. •• Project concept will be submitted for consideration of the InterdepartmentalProject concept will be submitted for consideration of the Interdepartmental•• Project concept will be submitted for consideration of the Interdepartmental Project concept will be submitted for consideration of the Interdepartmental

Commission for approval and further implementation.Commission for approval and further implementation.

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