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Kioge Daily-1 2009

KIOGE DAILY №1 (October 6, 2009)
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KIOGE: ADHERENCE TO CONTINUING SUCCESS “This year the KIOGE Exhibition and Conference is the most anticipated event in the project’s history,” said Sir Andrew Wood, the Exhibition and Conference Chairman, at the opening. Obviously, this speech contains two absolute facts: the global crisis that cannot but be discussed at international energy forums (such as KIOGE) and the projects based on the viable philosophy and energy of many people, companies and states, continue to function and develop. KIOGE exemplifies such a project!

KIOGE IS BEYOND THE CRISIS!

When speaking at yesterday’s opening, Sir Wood also spoke of “adherence to continuing success” in reference to KIOGE. KIOGE offers many reasons for this success.

The level of official representation is traditionally high; Lyazzat KIINOV, the Deputy Minister of Energy and Mineral Resources of Kazakhstan and an authoritative Kazakhstani oilman, and Kairgeldy KABYLDIN, Chairman of the Management Board of JSC NC KazMunaiGas, participate in KIOGE. The participants also include foreign officials such as Maria van der HOEVEN, the Minister of Economy and Energy of the Kingdom of the Netherlands; Daniel PONEMAN, the US First Deputy Secretary; and David LAMMY, the Minister of Education and Intellectual Property of Great Britain. At the national stand of Great Britain, David Lammy awarded educational grants to 11 students who studied in the Kazakh-British Technical University (KBTU). It is very likely that high-ranking representatives from other countries will also participate in KIOGE. The Chamber of Commerce and Industry (CCI) of Kazakhstan, the European Business Association of Kazakhstan (EUROBAK), and the Representative Office of the European Commission in Kazakhstan support and participate in the exhibition.

With regards to the effectiveness of events such as the exhibition and conference (i.e., the number of participants), everything is great! Representatives of 520 companies from over 30 countries are participating in KIOGE 2009. Up to 20,000 people will visit KIOGE! Judging by these figures, the crisis is a long way from the KIOGE Exhibition.

Another tradition of KIOGE – the involvement of some thematic innovations into its program – has been observed this time. This year, the Water and Energy exhibition: ‘Discover the World of H2O and Watt’ stands out. In the course of this exhibition, visitors will learn how to use water and energy sources economically. The Kazakh and German University is running the water and energy exhibition, which demonstrates the effect of the KIOGE exhibition on Kazakhstani education and science.

A further example of the “cumulative effect” of KIOGE on the Kazakhstan’s economic, expert, and scientific fields is the Conference of the Caspian Integration Business Club that took place on the first day of the exhibition, and at which the establishment of the Caspian petroleum exchange was declared. Thanks to KIOGE, it was in Almaty that this interesting event was announced.

GOOD NEWS FROM KIOGE

Lyazzat KIYINOV, the Deputy Minister of Energy and Mineral Resources, mentioned in his opening speech that the event had become very important both for press representatives and energy professionals. “Sometimes I see that journalists go into the “theme” so deeply that they know more that us, the oilmen. Of course, this was a joke, but joke with a meaning. Mr. Kiyinov said that the development of the national oil and gas sector and previous experience show that KIOGE is highly regarded by experts as more than worthy in the information sphere.

This year, oilmen also kept up the hope of the Kazakh economy – oil production will increase following the results of 2009, despite all the price fluctuations. According to Mr. KIYINOV, in this crisis year we are expecting that production will increase by 5 million tonnes, up to 75 million. This is a good indicator! According to the Deputy Minister, not everything is positive: production of old fields has decreased and new technology cannot be introduced because of the crisis. However, new fields have enabled production to increase. The staff of the oil and gas sector has not been reduced; all the employees are working to overcome the crisis.

There is no need to explain the importance of this topic for the entire Kazakhstan’s economy. However, some of Mr. Kiyinov’s statements are very important not only at the global level but also at the social level. Mr. Kiyinov also spoke about modernizing refineries: “Upon re-equipment, the design capacity of the refineries will reach 17 million tones, which will be enough to provide the growing country’s economy and raise petrol quality to the Euro-4 level,” said Mr. Kiyinov.

The KIOGE conference will take place on 7-8 October 2009 in hotel InterContinental Almaty - The Ankara in Kazakhstan. Over two days, about 1,000 delegates will listen to reports from senior managers of several oil-and-gas companies. This year, attention will be given to the contribution of Kazakhstan as a supplier of Caspian hydrocarbons to Eurasian markets, which will become a more important than previously.

You can read about the most interesting aspects of the exhibition and conference in tomorrow’s KIOGE Daily.

KAZAKHSTAN - DEALING WITH OIL FOR MORE THAN A CENTURY Lyazzat KIINOV, Vice Minister of Energy and Mineral Resources, Republic of Kazakhstan

Everyone is well aware of the importance of the oil and gas industry for Kazakhstan’s economy. This year, oilmen gave no grounds for disappointment. Despite difficulties, there is a marked increase in oil production. On behalf of the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, I would like to thank all our colleagues for their great work and to congratulate them on the 110th Anniversary of Oil Production in Kazakhstan. This is a small but very significant figure. Even more so as Kazakhstan has been dealing with oil for more than a century now, and we do have something to talk about.

An example is this exhibition, where experts demonstrate what they have achieved. Today is the start of an interesting time for oilmen, who can tell one another what is happening in the oil and gas industry and what new technologies are being implemented in their companies. I would like to wish every success to the exhibition and the exhibitors in their work.

COOPERATION BETWEEN KAZAKHSTAN AND THE NETHERLANDS CONTINUES TO GROW Maria van der HOEVEN, Minister of Economic and Energy Affairs, the Kingdom of the Netherlands

Despite the fact that the Netherlands is a small nation, the country is still one of the major natural gas exporters. The economic cooperation between Kazakhstan and the Netherlands continues to grow today, and as the result of this growth the exhibition features about 17 Dutch companies operating in the oil industry.

KIOGE is the most important exhibition worldwide and is intended for making contacts and networking between various international companies. I wish all the exhibitors every success so that they will ultimately leave here with new contacts and opportunities for their businesses.

KAZMUNAIGAS SHARES ACHIEVEMENTS Nurlan SAURANBAYEV, Managing Director, Oil Transportation KazMunaiGas National Company JSC

Our company has made a great contribution to the development of the oil and gas industry. We have implemented major projects and achieved good production indicators. We anticipate 18.6 million cubic meters in 2009 in terms of oil production, and more than 60 million in terms of oil transportation. Each year, we transport some seven million tons of oil. This year, recycling will amount to almost 10 million and gas transportation will be about 95 billion.

This exhibition is a great opportunity to share our latest achievements and to discuss current issues. I am confident that this will give an extra impetus to our company’s development. I would like to wish everyone the very best of success.

KIOGE 2009: BROAD OPPORTUNITIES Sir Andrew WOOD, Chairman, KIOGE Exhibition and Conference

The KIOGE Exhibition is a great opportunity to establish relationships with companies from different countries. Issues of international importance are resolved here. With each passing year, Kazakhstan is becoming increasingly important and influential in its global significance, and the role of the country in the development of oil and gas industry is becoming ever stronger.

The conference, exhibition and other events that will take place in parallel will provide many opportunities to gain information, learn new things, make new contacts, promote products and develop business. The exhibition has become one of the leading events in Kazakhstan and, in my opinion, the seventeenth year of this event is the most eagerly anticipated and productive period in the entire history of the exhibition.

I would like to congratulate everybody on this significant event and wish you every success in your work.

LAWYERS’ WORKSHOP The Conference Hall of The InterContinental Almaty – The Ankara Hotel in Kazakhstan - hosted speakers with years of experience and the highest levels of professionalism. The 9th Annual Workshop provided practical demonstrations of the key issues routinely encountered by investors and contractors operating in the oil and gas sector of Kazakhstan.

The Workshop participants received the latest information about Kazakhstan’s oil policies, including a demonstration of a film about the changes and developments in the oil sector in Kazakhstan. In their speeches on subsurface use and taxation, the speakers cited a multitude of examples of problem-solving and opportunities to increase the levels of professionalism in such processes. During the conference, experts discussed such hot topics as the local content procurement requirements, compliance and enforcement policies, and work permit issuance procedures.

As in previous years, the Workshop was sponsored by Price Waterhouse Coopers and Denton Wilde Sapte.

DROPLETS OF OIL FOR SOUVENIRS The Grand Gala Reception in the Bakshasarai Reception House ended Day One of the Exhibition.

The diversity of the evening’s music programme once again delighted the audience. Kazakh national dances with swords were followed by passionate Spanish style dance performances. There was much excitement about the traditional lottery draw to win Air Astana tickets. No less valuable was the prize of staying in a five-star apartment at The Rixos Hotel, which recently opened in Almaty.

BG Kazakhstan, the sponsor of the evening party, and the KIOGE organisers, handed souvenirs and special certificates to their partners for their support of the exhibition over the past 17 years. Prizes and gifts were also awarded to the best companies. Two companies, NCOC and CNPC, shared the award in the Best Exhibition Stand Design category.

“Droplets of Oil” will be taken back home by all the prize winners to keep as a memento of the event and their success during the year.

TO THE STRAINS OF THE DOMBRA This was not the first year that, ahead of KIOGE, the Kazakhstan-UK Association hosted a reception at the InterContinental Almaty, The Ankara Hotel in Kazakhstan, sponsored by Lloyd's Register and PSN KazStroy.

The reception was held in a cosy and friendly atmosphere to the sounds of ethnic music. Kazakhstan and British guests shared their experiences in establishing and developing the oil industries of their respective economies, which once again proved the existence of close relationships between the countries.

Lord Fraser of Carmyllie, Q.C. noted the need to build and maintain the relationship between Kazakhstan and the UK. The fruit of this co-operation can already be seen: Kazakhstani graduates of British universities told the guests of their achievements. For example, Aizhan Bulgakbayeva is the first Kazakhstani citizen ever in the country’s history to become an intern in the House of Lords. Also, Baurzhan Yesimbekov, while studying at a British university, earned recognition as the best young virtuoso on the dombra.

The reception was a starting point in the further development of the friendly dialogue between Kazakhstan and the UK at KIOGE.

KIOGE STARTS WITH FOOTBALL Everyone knows that PetroKazakhstan pays special attention to the morale of their staff. The company held a football match last Sunday as another teambuilding activity.

The event, which was dedicated to the KIOGE 2009 Exhibition and Conference, was held in the Dynamo Stadium. Cheered on by fans, students of A. Seleznev Almaty Choreography School and the squad of PetroKazakhstan representatives played host to a team of Kazakhstani journalists. Both teams demonstrated their skills but fortune favoured the oilmen. The final score (4-3) was decided by penalties.

The excitement of the match and the hard-won victory is a great inspiration for the forthcoming business week.

Official support 2011
Ministry of Oil and Gas of the Republic of Kazakhstan
Ministry of Oil and Gas of the Republic of Kazakhstan
Almaty City Akim
Almaty City Akim
JSC National Company "KazMunayGas"
KazMunayGaz
Kazakhstan Association of Oil-Gas and Energy Sector Organizations
kazenergy
sponsors 2011
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