Tag Archives: refining

Uzbekistan starts building oil refinery

APRIL 27 2017 (The Conway Bulletin) — Uzbekistan started construction of a $2.2b oil refinery near the border with Kazakhstan, a project that will boost jobs and should also plug a yawning fuel supply gap.

The Jizzakh refinery will be Uzbekistan’s fourth and will produce more than 3.7m tonnes of gasoline, more than 700,000 tonnes of jet fuel and about 300,000 tonnes of other oil products annually, according to officials.

It will receive unrefined oil through a yet-to-be-built pipeline from Kazakhstan, helping to cement improving bilateral relations.

The refinery is the most high- profile project initiated under President Shavkat Mirziyoyev, Uzbek leader since September last year. He has made boosting jobs and improving bilateral relations with Uzbekistan’s neighbours his core policy initiatives.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 327, published on May 5 2017)

Refined oil exports drop in Azerbaijan

APRIL 3 2017 (The Conway Bulletin) — Azerbaijan’s exports of refined oil products fell by 18.3% in the first quarter of 2017 compared to the year before to 286,000 tonnes, media reported quoting state- owned SOCAR. SOCAR didn’t give a reason for the drop but oil sales and refined oil products are a vital part of Azerbaijan’s economy and foreign earning power. Azerbaijan, like the rest of the region, is trying to recover from an economic slump.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 323, published on April 6 2017)

Kazakh energy company confirms deal with China’s CEFC to sell refinery

ALMATY, DEC. 15 2016 (The Conway Bulletin) — Shrugging off a Romanian investigation into the privatisation in 2003 of its main refinery asset, KMG International, the Black Sea orientated subsidiary of Kazakhstan’s state-owned energy producer Kazmunaigas, reaffirmed its commitment to sell a 51% stake in the company for $680m to China’s CEFC.

If the deal, first put together in May, does go ahead it will be a relief to the Kazakh government which has been trying to raise much needed cash to see it through a steep economic downturn linked to a sharp drop in oil prices.

For China, the 51% stake in KMG International would give it control over the Petromida refinery on Romania’s Black Sea coast near Constanta, which has a refining capacity of 5m tonnes of oil a year. The company also controls hundreds of petrol stations across Romania, Bulgaria, Moldova and Georgia through the Rompetrol brand.

KMG International’s CEO, Zhanat Tussupbekov, said the financial backing of CEFC would allow the company to expand.

“The strategy of KMG International with its new major shareholder aims at developing major projects, Romania being the business priority,” he said.

“We plan to increase the refining capacity to 10m tonnes of crude per year, to build up to 200 new fuelling points, to develop industrial services in upstream and downstream areas, as well as to build a co-generation plant on Petromidia platform.”

Importantly, though, the deal still needs regulatory approval from the EU, Romania and China.

The original deal for the sale had stalled because of a Romanian investigation into the purchase of Rompetrol, which owned the Petromida refinery, by Dinu Patriciu in 2003 for $760m. He sold the refinery four years later for $1.6 to Kazmunaigas. Patriciu died in 2014. The investigation into the deal doesn’t appear to be concluded.

Kazmunaigas International owns 55% of the company that owns the Petromida refinery. The Romanian government owns the other 45% of Petromida.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 310, published on Dec. 23 2016)

Turkmenistan to modernise oil refineries

NOV. 22 2016 (The Conway Bulletin) — Turkmen president Kurbanguly Berdymukhamedov ordered his government to modernise the country’s oil refineries so that it could boost its output of refined oil to 20m tonnes by 2020, 22m tonnes by 2022 and 25m tonnes by 2025, media reported. The Central Asia region in general has been suffering from a shortage of refinery capacity.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 306, published on Nov. 25 2016)

Kazakh oil company completes maintenance

NOV. 9 2016 (The Conway Bulletin) — Oil company PetroKazakhstan said it has completed planned maintenance and remodelling work at its Shymkent refinery three days ahead of schedule. Kazakhstan’s ministry of energy has repeatedly said that the country needs to upgrade its refineries and build a new one. London-traded KMG EP, a subsidiary of state-owned Kazmunaigas, owns a 33% stake in PetroKazakhstan, while China’s CNPC owns the rest.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 304, published on Nov. 11 2016)

 

Georgia signs deal with Iran to build new oil refinery

TBILISI, SEPT. 29 2016 (The Conway Bulletin) — Georgian-Iranian company GEOPARS signed a deal with the Georgian government to build an oil refinery in Supsa on the Black Sea coast, the first to be built in Georgia for 80 years.

According to local media, the government licensed the land to GEOPARS for free. GEOPARS said it would need to make an investment of $1.5b to build the refinery, a petro- chemical plant and a logistical centre.

PM Giorgi Kvirikashvili attended the signing ceremony and hailed its impact on Georgia’s industrial sector.

“We will see a project that once again accentuates and reinforces Georgia’s regional role as the shortest route to Europe for Near East and Asian countries. This is a project that puts Georgia on a map by highlighting not only its transit function, but its industrial role as well,” local media quoted him as saying.

Caution is needed, though. Georgia has negotiated building an oil refinery in Supsa or Poti several times previously with Azerbaijani, Kazakh and Russian investors but the deals eventually fell through.

SOCAR Georgia Investments, a subsidiary of Azerbaijan’s state owned energy company SOCAR, had proposed building a refinery in Supsa in May, but failed to commit funds.

This is the first refinery deal in Georgia made with Iran, which has played an increasingly active role in the South Caucasus over the past few years. If the project does go ahead, it will give Iran an important foothold in Georgia, a close US ally.

The only major oil refinery previously built in Georgia was at Batumi in the 1930s. The Batumi refinery was downgraded in the 1990s and sold to Kazakh investors. It later became an oil terminal.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyzstan receives tax back from Chinese refinery company

SEPT. 20 2016 (The Conway Bulletin) – Kyrgyz MP Yekmat Baibakpayev said that the state budget received just over 1b som ($15m) from the China-run Junda refinery, which faced closure this year for evading taxes. Mr Baibakpayev said that the oil refinery, located in the north of the country, owes the government five times as much. The Junda refinery was built by the China Petrol Company for $430m and opened in 2014.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 297, published on Sept. 23 2016)

Dispute threatens Kazakh refinery company’s sale of Romanian refinery

JULY 27 2016 (The Conway Bulletin) — A legal battle between Kazakhstan’s KMG International and the Roma- nian government risks stalling a $680m deal to sell a majority stake in the Kazakh company’s refinery to China’s CEFC.

KMG International, formerly known as Rompetrol, is preparing to lodge a lawsuit against the Romanian government over the seizure in May of its assets, according to the FT.

The Romanian government has said the Petromidia refinery, the largest in the country, was illegally privatised in the early 2000s before Kazmunaigas bought Rompetrol.

KMG International has now submitted a legal note to the Romanian government that will escalate the dispute.

“Romania is using its governmental power to undermine that transaction and re-nationalise the assets,” the FT quoted KMG International as saying in a letter to the government.

KMG International had to delay finalising the deal with CEFC, which in December agreed a $680m fee to buy 51% of the refinery.

Robert Cutler, Senior Researcher at the Institute of European Studies at Carleton University, Montreal, said that Romania was looking to block the sale.

“Kazakhstan is about to find out what it is like to be on the receiving end of ‘resource nationalism’, which it [Kazakhstan] has successfully used against foreign investors over the last decade,” he told The Conway Bulletin.

This delay and the asset freeze has angered officials at both KMG International and Kazmunaigas, its parent company.

Senior company officials have said that they will take legal action if the refinery sale is delayed.

Romanian investigators have focused on recovering cash from an allegedly illegal privatisation of the refinery in 2003, when the late Dinu Patriciu bought Petromidia for $760m. In 2007, Patriciu sold Rompetrol, which controlled Petromidia, to Kazmunaigas for $1.6b.

In the following years, the government acquired an 18% stake in the refinery.

Now, analysts say, the government might be looking to renationalise the refinery, an important and lucrative asset for Romania.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Turkish police arrests CEO of Azerbaijan’s state energy company for links to Gulen movement

AUG 1 2016 (The Conway Bulletin) — Turkish authorities have arrested Sadettin Korkut, former CEO of Petkim, an Azerbaijan-owned refinery on Turkey’s Mediterranean coast, in what media said was part of a purge of people linked to exiled cleric Fethullah Gulen (July 28).

Azerbaijan’s state-owned energy company SOCAR dismissed the claim, saying that the arrest was linked to a spat with another employee of SOCAR Turkey Enerji, its Turkish subsidiary.

Mr Korkut had resigned as CEO, a position he had held for four years, the day before he was arrested. Twenty-seven other employees of SOCAR’s Turkish subsidiary, which operates the Petkim refinery, were also sacked at the same time.

Turkish media immediately linked the arrest and the sackings to the Gulenist movement, which they dub a terrorist network.

“Around 200 workers from Petkim and related companies were sacked due to their alleged ties to the Gulenist Terror Organisation (FETO),” the Turkish state-run Anadolu Agency reported.

Around 60,000 public sector employees and dozens of journalists and businessmen were arrested in Turkey in the aftermath of an attempted military coup on July 15. Turkish President Recep Tayyip Erdogan accused Mr Gulen of masterminding the coup from his exile in the US.

Azerbaijan is one of Turkey’s strongest allies. It backed the arrest.

“SOCAR’s management believes that Turkey will become stronger after these difficult days. We will continue to operate and invest in Turkey with all of our energy,” Vagif Aliyev, CEO of SOCAR Turkey Enerji said in a statement.

SOCAR Turkey Enerji and SOCAR Turkey Petrokimiya own a majority stake in Petkim.

Anar Mammadov, head of SOCAR’s Greek subsidiary, has been appointed new CEO of Petkim.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

 

Kazakhstan and Iran to build refinery

JUNE 27 2016 (The Conway Bulletin) — Kazakhstan and Iran will build a new refinery in the Iranian Caspian Sea port of Amirabad, Golestan,specifically to process Kazakh oil for export. It is unclear how much the refinery is going to cost to build and when it will be operational but it is probably the biggest single joint venture between the two countries since many Western sanctions on Iran were lifted in January.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 287, published on July 1 2016)