Tag Archives: oil

Kazakhstan could buy Karachaganak stake

MAY 18 2015 (The Conway Bulletin) – Kazakhstan could buy a 29.25% stake in the Karachaganak oil and gas project in the north of the country when Shell completes its buyout of BG Group next year, BG Group said in its annual report.

Kazakhstan has been looking to increase its stake in various projects. Karachaganak was one of the last major operations that the Kazakh government took a stake in. It bought a 10% stake in Karachaganak for $3b in 2012.

Now, with Shell buying BG Group, Kazakhstan has the opportunity to buy a far larger chunk of Karachaganak.

“It is possible that the Republic of Kazakhstan may claim to have a right to acquire the Group’s interest in the Final Petroleum Sharing Agree- ment governing the operation of the Karachaganak gas and con- densate field in the event of a change of control of BG Group following a takeover bid,” BG Group said.

The Kazakh government hasn’t commented.

Karachaganak is one of BG Group’s most prized posses- sions, accounting for 9% of its revenues in 2014. Analysts have said that BG Group’s stake maybe worth around $4.4b.

ENDS

(News report from Issue No. 232, published on May 20 2015)

Azerbaijan oil exports drop

MAY 15 2015 (The Conway Bulletin) – Oil exports from Azerbaijan in the first four months of the year fell by nearly 1%, Reuters quoted a source at the state statistics agency as saying. The source did not specify a reason for the decline although it came as a surprise, especially after an earlier statement from BP that its oil output for Q1 had risen.

ENDS

(News report from Issue No. 232, published on May 20 2015)

Uzbekistan boosts energy production

MAY 13 2015 (The Conway Bulletin) – Uzbekistan will increase oil and gas production by 9% in the next five years, Uzbekneftegaz the state oil and gas company, said. Media quoted Uzbekneftegaz representatives at a conference in Tashkent aimed at foreign investors.

ENDS

(News report from Issue No. 231, published on May 13 2015)

Strike out in west of Kazakhstan

MAY 12 2015 (The Conway Bulletin) – Around 140 people working for the oil services company KazStroyService have gone on strike in west Kazakhstan demanding an increase in wages, media reported. Kazakhstan is sensitive to strikes. In 2011, 16 people died during fighting between protesters and police at a strike in west Kazakhstan.

ENDS

(News report from Issue No. 231, published on May 13 2015)

BP confirms that Azerbaijani oil output rises

MAY 13 2015 (The Conway Bulletin) – Oil produced by BP’s Azeri- Chirag-Guneshli (ACG) fields in the first quarter of the year inched up to average of 661,000 barrels per day from 645,800 barrels per day during the same period last year, BP-Azerbaijan said.

This increase, although small, is important. BP has been under increasing pressure from Azerbaijan to reverse a decline in output at ACG, the principal driver of Azerbaijani oil production.

For the past couple of years BP has spent millions and replaced various management teams trying to stem the decline in output at ACG.

It now appears to be working, and overall Azerbaijani oil production is rising as a consequence.

Earlier this month BP also said that it was going to suspend operations at one of the ACG platforms for repairs. This should dent ACG output in the short term.

ENDS

(News report from Issue No. 231, published on May 13 2015)

Azerbaijan’s Oil Fund drops

MAY 1 2015 (The Conway Bulletin) – Azerbaijan’s State Oil Fund said its assets had dropped by 5% in the first three months of the year compared to the same period in 2014. Azerbaijan’s government is trying to push its way through a regional economic downturn and has said it will dip into its reserves to support various projects.

ENDS

(News report from Issue No. 230, published on May 6 2015)

Kazakh energy company revenues drop

APRIL 30 2015 (The Conway Bulletin) – Revenue at Kazmunaigas EP, the London-listed unit of Kazakhstan’s state energy company, fell by 47% last year because of the collapse in oil prices, it said at its annual results. Importantly, too, salaries increased by 10% at Kazmunaigas after last year’s devaluation of the Kazakh tenge.

ENDS

(News report from Issue No. 230, published on May 6 2015)

Kazakhstan to resume pumping oil in Caspian Sea

APRIL 30 2015 (The Conway Bulletin) – Vladimir Shkolnik, Kazakhstan’s energy minister, said the Caspian Sea oil project Kashagan would resume pumping oil in December 2016. This estimation is a few weeks earlier than Western energy companies linked to the project have suggested. Oil from Kashagan was suspended in 2013.

ENDS

(News report from Issue No. 230, published on May 6 2015)

Petronas completes Statoil deal in Azerbaijan

APRIL 30 2015 (The Conway Bulletin) – Malaysia’s state energy company Petronas completed the $2.25b buyout of the Statoil’s assets in Azerbaijan, making it one of the biggest players on the Azerbaijani oil and gas scene.

The deal included a 15.5% stake in the Shah Deniz gas project, a 15.5% stake in the South Caucasus Pipeline Company and a 12.4% stake in the Azerbaijan Gas Supply Company.

Importantly, too, Azerbaijan’s state oil and gas company SOCAR took over operational control of the South Caucasus Pipeline Company which pumps gas from the Shah Deniz project, across Georgia to Turkey. From there it links up to the Turkish gas pipeline network.

Statoil surprised analysts last October when it agreed the deal. At the time it said that it wanted to reduce the proportion of investment in its portfolio in favour of higher value projects.

ENDS

(News report from Issue No. 230, published on May 6 2015)

Kazakhstan extends ban on Russian oil products

APRIL 20 2015 (The Conway Bulletin) – Kazakhstan extended a ban on the import of Russian oil products by an extra month until May 20. An original 45-day ban had been due to end on April 20. Kazakhstan imposed the ban because an imbalance in the Russian rouble-Kazakh tenge exchange rate has triggered an influx of cheap Russian oil products.

ENDS

(News report from Issue No. 228, published on April 22 2015)