Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

Current oil production at large oil refineries remains high — Ministry of Energy

Friday, 06 December 2019, 18:07:14

Tengiz, Karachaganak and Kashagan are the main oil production fields, they account for 60% of all oil produced in the country. Daily production at Kashagan was 37,891 tons as of Dec. 3. Vice Minister of Energy Aset Magauov announced this at a press conference in the government.

According to him, unscheduled work is ongoing at Kashagan, it is expected that in the near future the work will be completed. Current production remains high. About 37,900 tons are mined per day.

In the future, it is planned to complete the project of future expansion in Tengiz, which will allow reaching a stable level of production of about 100 million tons of oil already in 2023.

The project for future expansion is in the active phase, the total cost of the project is estimated at $36.8 billion. We expect the project to be completed on schedule. In addition, a large project concerns the Karachaganak field to maintain the current production plan of 11.5 million tons, this project is also being successfully implemented, total investments are estimated at around $3 billion,” said the vice minister of energy.

Magauov also commented on the issue of gas prices and the regulation of prices in the oil products market. According to him, Kazakhstan seeks to establish transparent relationships between end-sellers in the face of gas stations and manufacturers and suppliers of bulk gasoline.

For the past two years, the price of gasoline and diesel fuel has not been regulated. During the shortage period, the price was very high. Last year and at the beginning of this year, we were faced with an excess of gasoline, and our price fell. If we compare current prices with prices for the period last year, we see a decline. We are working to establish transparent relations in the market of oil products so that the final consumer could receive these volumes without intermediaries,” the vice minister said.

As Magauov noted, the market mechanism regulates the cost of petroleum products without any external factors.

If, for example, we take kerosene, then last year, when we depended on the Russian market, about 60% of the volumes of kerosene delivered to Kazakhstan, we focused on the level of export prices in the Russian Federation. Accordingly, the price of jet fuel reached up to $700 dollars per ton. As soon as we were able to ensure our volumes, the situation in the market stabilized, and this year prices fell to $550-560 per ton. The current market mechanism makes it possible to obtain adequate prices commensurate with the needs and demand in the market,” the vice minister emphasized.

The ministry is trying to regulate export volumes and prevent a deficit in the domestic market and its oversupply. In November, 80 thousand tons of gasoline were exported, 100 thousand tons are planned for export in December.

In addition, as noted by Magauov, great attention is paid to stimulating production in other areas.

To improve the investment attractiveness of the industry and replenish the resource base, legislative reforms were carried out and new Tax Code and the Code on Subsoil and Subsoil Use were adopted.

Great tax incentives were provided. This primarily relates to offshore and ultra-deep deposits. It provides an opportunity to introduce an alternative tax on subsoil use. That is, in return for the current taxes of subsoil users, such as rental tax, mineral extraction tax, excess profit tax, the subsoil user can choose to pay an increased income tax rate,” said the vice minister.

This measure, according to Magauov, has led to increased interest in offshore projects and onshore exploration.

In addition, subsoil users are given the opportunity, in the event of unsuccessful exploration on land, to attribute the costs to deductions for their mining contracts, which is a great incentive for them.


News feed
05 June 2020, 22:30
Historical monuments, athletes training and tourism industry — how culture and sports develop today in Kazakhstan
05 June 2020, 12:53
Aidyn Ashuev appointed Executive Secretary of the Ministry of Finance of the Republic of Kazakhstan
04 June 2020, 22:27
Distance learning, online enrollment in first grade, creation of schools network named after Abay — how Kazakhstanis remembered another academic year
04 June 2020, 17:21
Prime Minister Askar Mamin holds meeting of State Commission on Restoring Economic Growth
04 June 2020, 13:00
Askar Mamin: Attracting investment is one of key drivers of economic growth recovery
04 June 2020, 10:15
Akimats of several regions instructed to strengthen control over compliance with sanitary and epidemiological requirements
04 June 2020, 08:55
Serik Shapkenov appointed vice minister of labor and social protection of the population of the Republic of Kazakhstan
04 June 2020, 08:41
Roman Sklyar arrives in Akmola region for a working trip
04 June 2020, 02:02
Results of agro-industrial complex for 4 months of 2020: Creating new capacities, increasing crops area and introducing digitalization
04 June 2020, 01:29
New enterprises, road construction, housing — development of industrial sector of Kazakhstan
03 June 2020, 16:24
Akmadi Sarbassov appointed first vice minister of labor and social protection of the population of Kazakhstan
03 June 2020, 02:14
Increased funding and local content: Low housing construction developed in Kazakhstan
02 June 2020, 11:13
Over 131 thousand students to take part in UNT in 2020 — Ministry of Education and Science
02 June 2020, 10:40
Employment measures planned to reach 1 million 220 thousand people in 2020 — Ministry of Labor
02 June 2020, 10:33
Prime Minister Askar Mamin instructs to ensure high-quality implementation of UNT in compliance with sanitary requirements
02 June 2020, 10:19
Employment is of paramount importance — Askar Mamin
01 June 2020, 18:57
Algorithms for operating tourist facilities developed in Kazakhstan
01 June 2020, 16:27
Government session to be held June 2 in Ukimet Uyi
29 May 2020, 18:15
Prime Minister Askar Mamin: It is necessary to strengthen the factor of self-sufficiency of CIS countries
29 May 2020, 15:56
Interdepartmental Commission decides to remove checkpoints and resume activities of several industries
28 May 2020, 15:12
Two hundred and thirty best specialists in 11 industries work to increase competitiveness of Kazakhstan
28 May 2020, 01:23
Oil production, gas supply and investment attraction — review of energy sector in Kazakhstan
27 May 2020, 11:36
Prime Minister of Kazakhstan Askar Mamin presented Dostyk Order to UAE Ambassador Mohammed Al-Jaber
26 May 2020, 19:52
Intergovernmental Commission considers issues of strengthening quarantine enforcement
26 May 2020, 11:43
Steady growth of 4% maintained in livestock industry — Ministry of Agriculture
26 May 2020, 11:04
In 2020, it is planned to sow crops on area of ​​22.5 million hectares — Ministry of Agriculture
26 May 2020, 10:51
Efforts in livestock development will be aimed at increasing self-sufficiency and exports — Askar Mamin
26 May 2020, 10:18
Kazakhstan has real potential to become one of world’s food hubs — Askar Mamin
25 May 2020, 22:33
Modernization of pharmaceutical industry and production of protective products: How Kazakhstani enterprises developed during emergency state
25 May 2020, 19:39
Interdepartmental Commission decides to resume several types of activities in regions
25 May 2020, 15:01
Government session to be held May 26 in Ukimet Uyi
24 May 2020, 11:00
Video Digest: Main events of the week, No. 62
24 May 2020, 08:38
Prime Minister Askar Mamin congratulated Kazakhstanis on Oraza Ait
23 May 2020, 22:19
Small and medium-sized enterprises, investment, and exports: What Almaty region focused on
23 May 2020, 21:38
Video Digest: Results of Prime Minister Askar Mamin’s working trip to Almaty region
23 May 2020, 17:26
Prime Minister Askar Mamin gets acquainted with state of hydraulic structures and implementation of development programs in Almaty region
22 May 2020, 16:24
Prime Minister Askar Mamin inspects restoration works in Maktaaral district of Turkistan region
21 May 2020, 12:44
Capital should be an example for all regions — Askar Mamin
20 May 2020, 18:00
Roman Sklyar discusses development of bilateral cooperation in engineering with German companies
19 May 2020, 15:22
Since beginning of 2020, 118 thousand people employed under Enbek program — Birzhan Nurymbetov
19 May 2020, 14:08
Ruslan Dalenov: Main goal of implementing Integrated Plan — to ensure employment of people
19 May 2020, 13:53
Each year, state will purchase 365 thousand tons of agricultural products
19 May 2020, 12:36
Who can purchase housing under new program 5-10-20
19 May 2020, 11:49
Integrated plan to help restore economic activity by the end of 2020 — Ruslan Dalenov
19 May 2020, 10:02
Government adopts Integrated Plan for Recovering Economic Growth
19 May 2020, 09:01
Prime Minister Askar Mamin introduces new minister of finance
19 May 2020, 08:25
Roman Sklyar inspects progress of restoration work in Turkistan region
18 May 2020, 21:03
Total supply of socially significant food products in Kazakhstan is 720 thousand tons
18 May 2020, 17:44
Interdepartmental Commission considers epidemiological situation in the country
18 May 2020, 17:03
Government session to be held May 19 in Ukimet Uyi
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.