Atyrau OilTech highlights:
OilTech Aturau conference highlighted the boost of the economic development in Western Kazakhstan led by the oil and gas industry. Kazakstan is on the verge of doubling its oil production with Kashagan field coming on stream this year. According to NCOC’s External Relations Director Pierre Delpont, Phase 1 of the Kashagan field development Kashagan field development is progressing towards completion and preparations for start of production are underway. The “A Island” and its 8 wells are now ready for production and once all the milestones have been completed successfully, the system will be ready for first oil.
The Consortium is focused on getting commercial production in 2013. According to Senior fellow of the Netherlands Institute of International Relations Christof van Agt, Kazakhstan could rise in importance also as a trade & transit conduit for the region since existing fragile gas pipeline network is still no match for the vast production potential of the Caspian countries.
Delegates paid particular attention to the local content requirements set by the Kazakh government for the IOCs working in the O&G industry. Accroding to the Duputy Chairman of the National company “KazMunaiGas” JSC Magzum Mirzagaliyev, the main objective of local content programme is to provide Kazakh machinery, equipment and materials for most of the O&G industry needs in addition to quotas of local workforce to be employed by international consortia. While Senior Grata lawyer Yerbolat Yerkebulanov explained how the local content quotas could be calculated by the IOCS working in Kazakhstan, Regional director of INTSOK Hakon Skretting shared with the audience highlights of the Norwegian experience in developing local content. According to the later, maximizing the percentage of local content is not neccesserilly maximizing the benefits of the local content development. Both Mirzagaliyev and Skretting agreed that the quality of local goods and services should be competitive on the international market to provide Kazakh O&G industry the best value for money.
OilTech participants discussed also a wide variety of technologies that could be used in developing Kazakh O&G resources as well as transportation and downstream operations. One of the most interesting exchange of opinions took place at the last session where modernization of the Atyrau refinery was discussed. Deputy Director for construction and revamp of “Atyrau Refinery” LLP Zhaniyaz Kashaubayev informed about prospects to produce Euro -4 and Euro-5 fuels at the plant as of 2014. Zheng Fuqiang - Deputy Director of Sinopec Engineering in Kazakhstan also answered detailed questions regarding completion of the aromatic hydrocarbons production complex at the Atyrau oil refinery and why it was somewhat delayed this year.