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KIOGE: ALL ABOUT ENERGY ANATOMY OF THE PLANET The first day of the KIOGE Conference showed that there is a lot of international interest in Kazakhstan’s oil and gas sector.
Lyazzat KIINOV, the Deputy Minister of Energy and Mineral Resources, in his report about the Yeskene-Kuryk oil pipeline, said that main purpose of this project is to transport future Kashagan oil. Representatives of the oil and gas service sector also referred to this. Operations in the North Caspian shelf are also a priority in the development strategy of the National Company KazMunaiGas.
Kashagan is the main symbol of the Kazakhstan’s oil and gas sector and its attractiveness for foreign investment.
This attractiveness is high, as was evidenced in a speech by Daniel PONEMAN, the US First Deputy Secretary. He stated that the conference is the most important event both for Central Asia, and the whole world. Mr. Poneman illustrated the importance of the energy sector for the world: energy flows “through every muscle and tendon of the world economy”. In the next decade, Kazakhstan will become one of main global energy suppliers outside of OPEC.
KIOGE: THE GLOBAL PROJECTION FOR KASHAGAN
In the medium term, the global demand for hydrocarbons will increase considerably. Meanwhile, the Kashagan field (in the Kazakh sector of the Caspian shelf) will produce at least 5% of this increase. This guarantees Kazakhstan an important spot amongst oil exporting countries. However, we have so far only spoken about Kashagan, without considering Kazakhstan’s full potential!
KIOGE: GAS AND THE “LOCOMOTIVE”OF THE NATIONAL ECONOMY
We cannot but pay attention to the fact that a representative of Turkmenistan’s oil and gas sector gave a speech at the conference for the first time. Tore YAGSHYMURADOV, the Head of the Turkmengeologia State Corporation, said that Turkmenistan is among the biggest energy powers in the world. Almost all of its territory may produce oil and gas. This fact will increase the importance of Caspian countries in the global energy market.
This was indirectly confirmed by Vaclav BARTUSHKA, the Energy Ambassador of the Czech Republic. He pointed out that Europe was interested both in Kazakhstan and Turkmenistan’s gas. It has invested about 200 million euros in a study of possible supplies of energy from the Caspian region via the “Southern Corridor”.
Natural gas is very a promising energy source for Kazakhstan. It has proven reserves of about 3.7 trillion cubic meters. The export volume is not very high, as about 40% of gas is injected back to reservoirs. At the moment, gas is only exported to Russia; however, in the near future the situation will change with the diversification of export geography and the construction of a Chinese gas pipeline, which will increase the export volumes. Timothy GOULD, Program Manager - Caspian, Caucasus, Southeast Europe Directorate of Global Energy Dialogue, International Energy Agency, thinks that its supplies from the Caspian basin will have reached 10% of the total market volume by the time demand and supply rebalance.
Mr. Gould said: “We have been observing a great shift in the political and economic situation concerning Caspian gas, and its delivery to world markets on a commercial basis is part of a general process aimed at diversifying export routes”.
The role of KazMunaiGas in the country’s oil and gas sector was also considered at the conference. Kairgeldy KABYLDIN, the company’s Chairman of the Management Board, called it the locomotive of Kazakhstan’s economy, and all the information at KIOGE confirmed this. According to international experts, today KMG is 50th in the ranking of international oil and gas producing companies. KMG has an ambitious goal to move to 30th place. The strategy for this goal is divided into five areas covering almost all oil and gas business activities - from exploration to marketing aimed at sales of oil products.
The issue of taxation was almost a stumbling block in relations between the state and investors. And, of course, it was discussed at KIOGE 2009. Kenzhebek Ibrashev, the CEO of KazMunaiGas Exploration Production, noted that the Tax Code, which came into force in January 2009, allows companies to work successfully in the interests of all shareholders despite increasing loads at higher oil prices.
BUSINESS PARTNERSHIP WITH SOCIAL PROJECTS (Kairgeldy KABYLDIN, Chairman of the Management Board KazMunaiGas National Company JSC )
Our company is a regular participant in the KIOGE Conference. In addition to our operations in the oil and gas industry, we are implementing a business partnership with social projects. We have developed a number of special programmes - in particular, awards and grants for teachers, in memory of Safi Utebayev, an outstanding oilman of Kazakhstan. We also held a contest for journalists. At the company’s initiative, a children’s sports event devoted to the 110th anniversary of oil production in Kazakhstan was organised, and a mobile photographic exhibition, The History of Kazakhstan’s Oil: Events and Names, was created. The company has also opened a health and fitness centre in the town of Zhanaozen and established a monument to Safi Utebayev.
In recent years, the conference has become one of the most authoritative discussion platforms in Kazakhstan. At the conference a dialogue takes place between the participants and the press about important projects for Kazakhstan and other countries. The conference provides a unique opportunity for open dialogue between oil and gas companies, and provides information about projects connected with the development of the energy resources market. I would like to invite everyone to the KIOGE 2009 Exhibition, which is one of the country’s most important oil and gas events.
KIOGE – AN EXCELLENT VEHICLE FOR UK BUSINESS (Terry WILLIS, Managing Director for the Caspian Region EIC )
The UK national group, which is organised by the Energy Industries Council (EIC), is exhibiting at KIOGE for the fifteenth year in the event’s seventeen-year history. The UK stand, which is located in Pavilion 9B, presents the products and services of 15 companies and includes five first-time exhibitors. They can meet key representatives from both influential organisations and smaller local companies at KIOGE, and even though there is a language barrier to overcome in some instances, there is nevertheless a lot of interest in UK products.
KIOGE is an excellent vehicle for companies which are looking to establish themselves in this market or trying to get a feel for it. While most of the energy activity is in Western Kazakhstan, Almaty is still the real driving force and the best place to meet people and be at the centre of the country’s oil and gas sector.
The Kazakh oil and gas sector offers a range of business opportunities and this is attractive for UK companies.
A COCKTAIL PARTY FROM NCOC The relaxed atmosphere of the cocktail party to mark the opening of the KIOGE 2009 Conference allowed guests to rest after a day filled with different events. The cosy hall of the Members’ Bar of the five-star Intercontinental Almaty – the Ankara Hotel in Kazakhstan - coupled with the sounds of the saxophone and the clarinet, created a friendly atmosphere at the reception.
The party’s sponsor, NCOC, and the Conference organisers extended a warm welcome to the guests and expressed the wish that they would establish strong business relations based on mutual understanding and trust.
A FESTIVE ATMOSPHERE The Gala Reception to mark the opening of the KIOGE 2009 Conference was held in one of the most luxurious halls of the Hyatt Regency Almaty Hotel.
Baker Hughes, the sponsor and organiser of the reception, staged a real feast with prizes and gifts for friends and colleagues. Certificates and trophies for long-term cooperation were given to BG Kazakhstan, Baker Hughes, Statoil Hydro, Schlumberger, and McDermoff. The festive feeling was further increased by the varied entertainment programme, which included dances, music from the Jazz Session band and a performance on the dombra, the national musical instrument.
AN EXQUISITE PARTY Many informal meetings took place amongst the KIOGE participants on the evening of 7 October.
The two major oil powers, the US and the UK, met their guests in the hall of the Holiday Inn Hotel, which has recently opened in Almaty. During the party, the initial results of the Exhibition and Conference were announced. Despite the rapid development of business relations between Kazakhstan and the countries hosting the party, the event was far from formal. This was partly due to the pleasant musical accompaniment provided by Mikhail Bulgakov’s quartet.
The British Ambassador to Kazakhstan, His Excellency Paul Brummell, will end his diplomatic mission in Kazakhstan this year. On behalf of the organisers of the exhibition and conference, we would like to wish you every success for the future.
GERMAN HOSPITALITY On 7 October, Mr. Gerold Amelung, Consulate General of the Federal Republic of Germany in Almaty, gave a party in the hall of a cosy restaurant, the Palladium Jazz Club. The open event brought together German and Kazakhstani business, politics and media representatives.
Such cocktail parties have long been a tradition, and this year has been no exception. German companies, which are members of the National Group and have been actively participating in KIOGE since its beginnings, had the pleasure of communicating with their Kazakhstani partners in an informal environment. The party’s friendly atmosphere and the great music was conducive to both business negotiations and small talk.
- KIOGE: ALL ABOUT ENERGY ANATOMY OF THE PLANET
- BUSINESS PARTNERSHIP WITH SOCIAL PROJECTS (Kairgeldy KABYLDIN, Chairman of the Management Board, KazMunaiGas National Company JSC)
- KIOGE – AN EXCELLENT VEHICLE FOR UK BUSINESS (Terry WILLIS, Managing Director for the Caspian Region, EIC)
- SOCIAL EVENTS:
KIOGE: ALL ABOUT ENERGY ANATOMY OF THE PLANET The first day of the KIOGE Conference showed that there is a lot of international interest in Kazakhstan’s oil and gas sector.
Lyazzat KIINOV, the Deputy Minister of Energy and Mineral Resources, in his report about the Yeskene-Kuryk oil pipeline, said that main purpose of this project is to transport future Kashagan oil. Representatives of the oil and gas service sector also referred to this. Operations in the North Caspian shelf are also a priority in the development strategy of the National Company KazMunaiGas.
Kashagan is the main symbol of the Kazakhstan’s oil and gas sector and its attractiveness for foreign investment.
This attractiveness is high, as was evidenced in a speech by Daniel PONEMAN, the US First Deputy Secretary. He stated that the conference is the most important event both for Central Asia, and the whole world. Mr. Poneman illustrated the importance of the energy sector for the world: energy flows “through every muscle and tendon of the world economy”. In the next decade, Kazakhstan will become one of main global energy suppliers outside of OPEC.
KIOGE: THE GLOBAL PROJECTION FOR KASHAGAN
In the medium term, the global demand for hydrocarbons will increase considerably. Meanwhile, the Kashagan field (in the Kazakh sector of the Caspian shelf) will produce at least 5% of this increase. This guarantees Kazakhstan an important spot amongst oil exporting countries. However, we have so far only spoken about Kashagan, without considering Kazakhstan’s full potential!
KIOGE: GAS AND THE “LOCOMOTIVE”OF THE NATIONAL ECONOMY
We cannot but pay attention to the fact that a representative of Turkmenistan’s oil and gas sector gave a speech at the conference for the first time. Tore YAGSHYMURADOV, the Head of the Turkmengeologia State Corporation, said that Turkmenistan is among the biggest energy powers in the world. Almost all of its territory may produce oil and gas. This fact will increase the importance of Caspian countries in the global energy market.
This was indirectly confirmed by Vaclav BARTUSHKA, the Energy Ambassador of the Czech Republic. He pointed out that Europe was interested both in Kazakhstan and Turkmenistan’s gas. It has invested about 200 million euros in a study of possible supplies of energy from the Caspian region via the “Southern Corridor”.
Natural gas is very a promising energy source for Kazakhstan. It has proven reserves of about 3.7 trillion cubic meters. The export volume is not very high, as about 40% of gas is injected back to reservoirs. At the moment, gas is only exported to Russia; however, in the near future the situation will change with the diversification of export geography and the construction of a Chinese gas pipeline, which will increase the export volumes. Timothy GOULD, Program Manager - Caspian, Caucasus, Southeast Europe Directorate of Global Energy Dialogue, International Energy Agency, thinks that its supplies from the Caspian basin will have reached 10% of the total market volume by the time demand and supply rebalance.
Mr. Gould said: “We have been observing a great shift in the political and economic situation concerning Caspian gas, and its delivery to world markets on a commercial basis is part of a general process aimed at diversifying export routes”.
The role of KazMunaiGas in the country’s oil and gas sector was also considered at the conference. Kairgeldy KABYLDIN, the company’s Chairman of the Management Board, called it the locomotive of Kazakhstan’s economy, and all the information at KIOGE confirmed this. According to international experts, today KMG is 50th in the ranking of international oil and gas producing companies. KMG has an ambitious goal to move to 30th place. The strategy for this goal is divided into five areas covering almost all oil and gas business activities - from exploration to marketing aimed at sales of oil products.
The issue of taxation was almost a stumbling block in relations between the state and investors. And, of course, it was discussed at KIOGE 2009. Kenzhebek Ibrashev, the CEO of KazMunaiGas Exploration Production, noted that the Tax Code, which came into force in January 2009, allows companies to work successfully in the interests of all shareholders despite increasing loads at higher oil prices.
BUSINESS PARTNERSHIP WITH SOCIAL PROJECTS (Kairgeldy KABYLDIN, Chairman of the Management Board KazMunaiGas National Company JSC )
Our company is a regular participant in the KIOGE Conference. In addition to our operations in the oil and gas industry, we are implementing a business partnership with social projects. We have developed a number of special programmes - in particular, awards and grants for teachers, in memory of Safi Utebayev, an outstanding oilman of Kazakhstan. We also held a contest for journalists. At the company’s initiative, a children’s sports event devoted to the 110th anniversary of oil production in Kazakhstan was organised, and a mobile photographic exhibition, The History of Kazakhstan’s Oil: Events and Names, was created. The company has also opened a health and fitness centre in the town of Zhanaozen and established a monument to Safi Utebayev.
In recent years, the conference has become one of the most authoritative discussion platforms in Kazakhstan. At the conference a dialogue takes place between the participants and the press about important projects for Kazakhstan and other countries. The conference provides a unique opportunity for open dialogue between oil and gas companies, and provides information about projects connected with the development of the energy resources market. I would like to invite everyone to the KIOGE 2009 Exhibition, which is one of the country’s most important oil and gas events.
KIOGE – AN EXCELLENT VEHICLE FOR UK BUSINESS (Terry WILLIS, Managing Director for the Caspian Region EIC )
The UK national group, which is organised by the Energy Industries Council (EIC), is exhibiting at KIOGE for the fifteenth year in the event’s seventeen-year history. The UK stand, which is located in Pavilion 9B, presents the products and services of 15 companies and includes five first-time exhibitors. They can meet key representatives from both influential organisations and smaller local companies at KIOGE, and even though there is a language barrier to overcome in some instances, there is nevertheless a lot of interest in UK products.
KIOGE is an excellent vehicle for companies which are looking to establish themselves in this market or trying to get a feel for it. While most of the energy activity is in Western Kazakhstan, Almaty is still the real driving force and the best place to meet people and be at the centre of the country’s oil and gas sector.
The Kazakh oil and gas sector offers a range of business opportunities and this is attractive for UK companies.
A COCKTAIL PARTY FROM NCOC The relaxed atmosphere of the cocktail party to mark the opening of the KIOGE 2009 Conference allowed guests to rest after a day filled with different events. The cosy hall of the Members’ Bar of the five-star Intercontinental Almaty – the Ankara Hotel in Kazakhstan - coupled with the sounds of the saxophone and the clarinet, created a friendly atmosphere at the reception.
The party’s sponsor, NCOC, and the Conference organisers extended a warm welcome to the guests and expressed the wish that they would establish strong business relations based on mutual understanding and trust.
A FESTIVE ATMOSPHERE The Gala Reception to mark the opening of the KIOGE 2009 Conference was held in one of the most luxurious halls of the Hyatt Regency Almaty Hotel.
Baker Hughes, the sponsor and organiser of the reception, staged a real feast with prizes and gifts for friends and colleagues. Certificates and trophies for long-term cooperation were given to BG Kazakhstan, Baker Hughes, Statoil Hydro, Schlumberger, and McDermoff. The festive feeling was further increased by the varied entertainment programme, which included dances, music from the Jazz Session band and a performance on the dombra, the national musical instrument.
AN EXQUISITE PARTY Many informal meetings took place amongst the KIOGE participants on the evening of 7 October.
The two major oil powers, the US and the UK, met their guests in the hall of the Holiday Inn Hotel, which has recently opened in Almaty. During the party, the initial results of the Exhibition and Conference were announced. Despite the rapid development of business relations between Kazakhstan and the countries hosting the party, the event was far from formal. This was partly due to the pleasant musical accompaniment provided by Mikhail Bulgakov’s quartet.
The British Ambassador to Kazakhstan, His Excellency Paul Brummell, will end his diplomatic mission in Kazakhstan this year. On behalf of the organisers of the exhibition and conference, we would like to wish you every success for the future.
GERMAN HOSPITALITY On 7 October, Mr. Gerold Amelung, Consulate General of the Federal Republic of Germany in Almaty, gave a party in the hall of a cosy restaurant, the Palladium Jazz Club. The open event brought together German and Kazakhstani business, politics and media representatives.
Such cocktail parties have long been a tradition, and this year has been no exception. German companies, which are members of the National Group and have been actively participating in KIOGE since its beginnings, had the pleasure of communicating with their Kazakhstani partners in an informal environment. The party’s friendly atmosphere and the great music was conducive to both business negotiations and small talk.
