Vol. 3, No. 34, September 13, 2002
Special issue
Kazakhstan to play "very significant role" in world energy market, minister saysKazakhstan's energy minister, Vladimir Shkolnik, visiting the U.S. on September 12 for talks with U.S. Secretary of Energy Spencer Abraham and other officials, said the republic will "play a very significant role in servicing the world's energy needs", a view shared by key policy makers in Washington. "In the Caspian Sea, oil reserves of up to 33 billion barrels have been found, a supply greater than our own reserves and double that of the North Sea," U.S. Senator Conrad Burns (R-MO) said the same day at the National Press Club in Washington. "And estimates say another 233 billion barrels of reserves could be lurking undiscovered somewhere in that sea. Such a massive amount of oil would constitute 20%-25% of the world's proven reserves."In June 2002, an international consortium developing giant Kashagan offshore field in the Kazakhstan's sector announced the commercial discovery at the field of 7 to 9 billion barrels of recoverable reserves. Geologists believe that, as conservative as these estimates are, they still make the field the largest oil find in the world in the past 30 years. Kazakhstan's oil production set to increase from its current rate of around 40 million metric tonnes in 2001 to 45 million metric tonnes in 2002 and on to 100 million metric tonnes by 2010, Mr. Shkolnik said Thursday. As such, Kazakhstan, believed to be the Caspian's most oil-rich country, will become "an important contributor to ensuring oil supplies' and prices' stability", he added.Kazakhstan and the U.S. should join their efforts in order to develop cooperation in various spheres, Secretary Abraham said at the meeting with Mr. Shkolnik, adding that Kazakhstan is "an important partner in the fight against terrorism".Their talks on Thursday culminated in signing of two bilateral agreements aimed at promoting energy cooperation between the governments and companies of the two nations. One agreement, signed by Secretary Shkolnik and Secretary Abraham, provides for enhanced cooperation on oil and gas exploration and transportation, electric power and energy facilities security. The two governments agreed to cooperate closely to bring to life a system of multiple export routes for Kazakhstan's energy resources, including the Aktau-Baku-Tbilisi-Ceyhan oil transportation system.
"Kazakhstan supports U.S. efforts to ensure diversified energy supplies for the U.S. economy," Mr. Shkolnik said at a press event for Kazakh media after his talks with Secretary Abraham on Thursday. "America welcomes the construction of Caspian pipelines, which can unleash millions of barrels of landlocked oil," Senator Burns, a member of Energy and Natural Resources Committee, said at the press club.Mr. Shkolnik said the new oil production in Kazakhstan would come mostly from giant offshore fields in Kazakhstan's sector of the Caspian Sea such as Kashagan, and onshore projects such as Tengiz and Karachaganak. The number of joint projects with foreign oil companies should increase next year, Mr. Shkolnik said, after the government approves its program for Caspian's offshore development by the end of this year. The government is expected to offer exploration and production rights to dozens of blocks in the northern Caspian. "Great potential" also lies in so called "missed" fields in Kazakhstan, Mr. Shkolnik said. Such fields have been "overlooked" during the previous development of bigger and easier-to-develop fields nearby or on top of them.The agreement signed Thursday also provides for new gas export routes to be discussed jointly. The U.S. Trade and Development Agency agreed to provide a financial grant to Kazakhstan for a feasibility study on the proposed internal gas pipeline in the republic.Mr. Shkolnik was in Washington to co-chair with Mr. Abraham the first Cabinet-level session of Special Energy Partnership Committee, established following President Nazarbayev's visit to the U.S. in December 2001. * * *
For more news and information visit us at www.kazakhstan-embassy-us.org
News Bulletin of the Embassy of the Republic of Kazakhstan
(Compiled from own sources and various agencies' reports)
Contact persons: Roman Vassilenko, Aibek Nurbalin
Tel.: (202) 232- 5488 ext. 104, 115
Fax: (202) 232- 5845
