September 1,Olivier Lazare took over as Country Chair of Shell Kazakhstan. The responsibilities of Mr. Lazare include the overall management of the company in Kazakhstan.
A French native with a PhD in Nuclear Physics, Olivier Lazare has over 30 years of experience with Shell. Previously Mr. Lazare held a diverse range of roles in engineering, contracting and procurement, strategy and planning, and new business development in the UK, the Netherlands, Gabon, Brunei, Oman, Australia, the US and Russia. Prior to this appointment, since 2013, Mr. Lazare held the role of Country Chair in Russia.
September 5, in Aktobe ceremonial event was held dedicated to the 20th anniversary of cooperation of the Republic of Kazakhstan and the People's Republic of China in the oil and gas industry. It was attended by Akim of the Region Berdybek Saparbayev, Vice Minister of Energy Asset Magauov, Vice-Chairman of the KAZENERGY Association Uzakbay Karabalin and Vice President of the CNPC Wang Dongjin, the press-service of Akim of the Region reports.
In 1997 Aktobemunaigas JSC was founded under the agreements of two countries, which became the first investment project of China National Petroleum Corporation (CNPC) in Kazakhstan. Thus began the history of oil and gas cooperation between Kazakhstan and China. Over the years of cooperation the company has produced more than 100 million tons of oil and 51 billion cubic meters of gas, investment amounted to approximately $13 billion.
Also within the framework of corporate social responsibility the company completes the construction of the Palace of Youth in Aktobe worth 1.5 bln KZT. Many social projects implemented in parts of the Region.
The investment plan of the company for the current year equals 90 bln KZT, which is two times more than in 2016.
September 7-8, XI KAZENERGY EURASIAN FORUM
”Securing the future of energy” was held in Astana. Among the key speakers of the Forum were Prime Minister Bakytzhan Sagintayev, Energy Minister Kanat Bozumbayev, Minister of Energy of U.A.E. Suhail Mohamed Faraj Al Mazrouei, President of the World Petroleum Council Tor Fjaeran, Secretary General, Energy Charter Secretariat Urban Rusnak, Secretary General of the International Renewable Energy Agency Adnan Amin and others.
On the grounds of the Forum the issues and challenges associated with the effective management of sustainable energy sources, providing access to energy resources, climate change and reduction of carbon dioxide emissions, promotion of alternative sources of energy, the implementation of programs on effective “intelligent” energy, innovative development of uranium and nuclear industry were discussed.
National Company KazMunayGas JSC reported that the final date for the completion of a deal for the sale of 51% of shares in its subsidiary KMG International N.V. is moved to October 31, 2017. (KMGI). Earlier the deal was scheduled to close before the end of this summer. Notification was published on the website of the Kazakhstan Stock Exchange (KASE).
This package of shares, according to the Agreement signed on April 29, 2016, KazMunayGas sells to Chinese private energy company China Energy Company Limited (CEFC) with the subsequent creation of KMGI-based joint venture.
The cost of the transaction is $680 million - these funds CEFC will pay to KazMunaYGas directly for purchasing of the securities. In addition, the Chinese side undertakes obligations to invest $3 billion in further development of KMGI (former Rompetrol).
September, Interfax-Kazakhstan reported, citing the Energy Ministry, that Kazakhstan does not waive the protection of the interests in the international arbitration in a dispute with shareholders of Karachaganak. “The Republic of Kazakhstan did not stop protecting its interests in the international arbitration on the dispute. If no agreement is reached on the settlement until the completion of the arbitration, the dispute will be carried out in the international arbitration", said in the Ministry's response to the request of the Agency.
As it is known, September 1 was the deadline for memorandum of negotiations with Karachaganak shareholders on resolving disputes related to the calculation of the shares in the production sharing. Meanwhile, negotiations to resolve the dispute are continuing. Earlier the Minister of Energy Kanat Bozumbayev said to journalists that Kazakhstan is willing to forgo arbitration in the summer if the Government deems that offers of the shareholders to settle the dispute suit it.
September 19,the Government, in the course of the meeting, under the chairmanship of Prime Minister Bakytzhan Sagintayev, considered the main conceptual directions of the developed draft Code on Subsoil and Subsoil Use.
The main objectives of the draft Code are the replenishment of mineral-raw-material base for sustainable economic development of the country, creating new projects, the creation of new jobs.
For the most favorable conditions for companies the draft Code provides for the availability of geological information, transfer to the licensed mode of operations on subsoil use and principle of first application (receipt of subsoil use right in few days and provided quick access to the resources), simplifying the management of the transition from total Government control to economic mechanisms, stimulating quick exploration.
Along with this, the draft Code provides for increased requirements on environmental and industrial safety, the introduction of the modern practice of elimination of consequences of subsoil use. Also in the draft keeps local content requirements, which are in conformity with the terms of accession of Kazakhstan to WTO.
On requestof the National Maritime Shipping Company Kazmortransflot LLP (KMTF) at the shipyard of shipbuilding company Damen in Gorinheim (the Kingdom of the Netherlands) two tugs were built: Emba and Talas. The project is being implemented in accordance with the agreement on borrowing funds between Kazmortransflot, shipbuilding company Damen and Islamic bank Al Hilal, which includes the construction of three tugs for Kazmortransflot. "The new tugs will significantly expand the range of services provided by KMTF in the framework of the projects of the Kazakhstan sector of the Caspian Sea and other parts of the Caspian states. The completion of the third tug is expected in 2018”, said the Director General of KMTF Marat Ormanov.
Tugs will operate in shallow areas of the Northern Caspian and perform such functions as towing objects and vessels, assisting ships, navigational assistance, planting and handling of anchors, and other auxiliary ship duties.
September 21,President Nursultan Nazarbayev during a meeting on the development of Almaty City instructed the Head of city Bauyrzhan Baibek to transfer CHP-2 to gas. “I instruct the Akim together with Samruk-Kazyna to take measures to transfer CHP-2 to gas by 2020 and to complete the private sector’s gasification”, said the President.
21 September, the press-service of KazMunaiGas Exploration Production JSC (KMG EP) reported that Dauren Karabayev became the Chairman of the Board of Directors of the company. He was elected at the meeting of the Board of Directors and replaced Igor Goncharov on that post, who resigned from KMG. Karabayev is the Executive Vice President - Financial Director of KMG, he is a member of the Board of Directors of KMG EP since May 2017.
September 26-27, 2017, Extraordinary General Meetings of Caspian Pipeline Consortium-R JSC (Russia) and Caspian Pipeline Consortium-K JSC (Kazakhstan) Shareholders and Meeting of the Board of Directors of Caspian Pipeline Consortium-R JSC were conducted in Batumi (Georgia).
“In the course of the Meetings, it was pointed out that in the third quarter of the current year CPC would allocate $320 million to repay its debt to the Shareholders. In accordance with the existing business model the debt is to be completely repaid in 2020”, the company said. Currently, after the gradual commissioning of new facilities of the Expansion Project CPC pipeline system throughput capacity has exceeded 58 million tons of crude oil per year. Before the end of this year, CPC will put into operation two more pump stations (one in Russia and one in Kazakhstan), thus ensuring the full designed capacity of the Tengiz-Novorossiysk pipeline system: 67 million tons of oil per year.
The Governance bodies passed resolutions on CPC Quality Bank functioning, maintenance of the crude pipeline system facilities in the Russian Federation and other CPC operation matters.