BAKU, Azerbaijan, July 31. Kazakh national oil
and gas company KazMunayGas (KMG) and China National Petroleum
Corporation (CNPC) have discussed further cooperation on a number
of strategic oil and gas projects in Kazakhstan, KMG reports
The discussions took place during a meeting in Beijing between
KMG Chairman Askhat Khassenov and CNPC President Zhou Xinhuai.
The parties reviewed progress on the expansion of the Shymkent
oil refinery, one of Kazakhstan's key energy projects, which aims
to increase the plant's annual processing capacity from 6 million
to 12 million tons by 2030.
According to KMG, the feasibility study for the project is
currently under development, while the technological audit, market
research, LP modeling and selection of licensors have already been
completed. Work is also underway to optimize the project
configuration in order to reduce capital expenditures.
The sides also discussed the Urikhtau gas project in
Kazakhstan's Aktobe region, where field development is continuing
ahead of full-scale production. Equipment procurement is underway
and construction and installation work has begun. Raw gas from the
field will be processed at the Zhanazhol Oil and Gas Processing
Complex operated by CNPC-Aktobemunaigas. The Central Urikhtau
gas-condensate field, with reserves of 29.4 billion cubic meters,
is expected to produce up to 1 billion cubic meters of gas
annually.
"The implementation of these projects is aimed at fulfilling the
Head of State's instructions on modernizing existing refineries,
maximizing the utilization of current refining capacities and
accelerating the development of new gas fields," KMG said.
The meeting also covered the activities of the Mangistaumunaigas
joint venture. As of July 1, the company had produced 3.012 million
tons of oil this year. KMG noted that work is underway to expand
the resource base and develop satellite fields with combined
geological reserves exceeding 20 million tons.
In addition, the parties discussed measures to replenish
reserves at mature oil fields in Kazakhstan's Kyzylorda region. KMG
has completed a comprehensive assessment of exploration and
appraisal opportunities at the Kazgermunai and PetroKazakhstan
Kumkol Resources assets. The company proposed that KMG and CNPC
approve a unified exploration strategy and identify priority
exploration projects.
The sides also reviewed plans to expand the Kazakhstan-China oil
pipeline system. Following the completion of the necessary
corporate procedures by the Chinese side, KMG and CNPC have begun
developing a feasibility study for the project. The initiative
предусматривает increasing the capacity of the Kenkiyak-Atyrau oil
pipeline to 15 million tons per year and the Kenkiyak-Kumkol
pipeline to 20 million tons per year.
The meeting concluded with both sides expressing readiness to
step up cooperation across all key areas.
