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KazMunaiGas EP to supply 4.6 million tons of oil to Kazakh oil refineries in 2018

04 December 2017 [13:59] - TODAY.AZ

By Azernews


By Kamila Aliyeva

KazMunaiGas Exploration Production JSC (KMG EP) will supply 4.6 million tons of oil to the Kazakh refineries for its further processing and sale of oil products in 2018, taking into account the company’s shares in joint ventures, Kazinform reported.

The company reported on the approval of the budget for 2018 and business plan for 2018-2022 by the board of directors.

It is planned that the subsidiaries of KMG EP - Ozenmunaigas (OMG) JSC and Embamunaigas (EMG) JSC - will deliver approximately 36 percent of the total sales or 3 million tons of oil or 60,000 barrels per day in 2018, according to the information.

The oil will be sent directly to the Atyrau refinery and to the Pavlodar petrochemical plant for its further processing and sale of petroleum products in accordance with the scheme of independent oil processing, which has been in effect since April 2016.

At the same time, of the 3 million tons of oil, 1.9 million tons (or 38,000 barrels per day) will be supplied to the Atyrau refinery and 1.1 million tons (or 22,000 barrels per day) to the Pavlodar petrochemical plant.

It is planned that the share of oil supplies to the domestic market from the resources of OMG and EMG will on average amount to 33 percent of total sales in 2019-2022.

In turn, the share of KMG EP in the planned volume of crude oil supplies to the domestic market - Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI) LLP in 2018 will be 1.6 million tons (34,000 barrels per day), or approximately 49 percent of the total sales of these companies.

It is forecasted that in 2019-2022 the share of supplies to the domestic market of KGM, CCEL and PKI will remain at the level of no more than 50 percent of the total sales.

The net profit from the sale of petroleum products (excluding all expenses related to processing and sales) in 2018 is planned by KMG EP per ton of oil in the amount of 62,616 tenge at the Atyrau refinery and 65,072 tenge at the Pavlodar petrochemical plant.

At the same time, the net proceeds from sales depend on the oil products market (except for the AI-80 gasoline regulated by the state) and the basket of oil products to the refinery, the company noted.

The tariff for oil refining at the Atyrau refinery since April 2017 is 24,512 tenge per ton, while at the Pavlodar refinery since August this year - 16,417 tenge per ton.

Earlier it was reported that after the planned completion of the modernization program at the Atyrau refinery and Pavlodar petrochemical plant in 2018, the share of light oil products will increase, and starting from the fourth quarter of 2018, Atyrau refinery will further increase the production of petrochemical products. The budget for 2018 takes into account the increase in tariffs for oil refining by about 28 percent at the Atyrau refinery and 5 percent at the Pavlodar petrochemical plant to the current level.

However, these expectations of the company can be adjusted taking into account the changes in the situation in the domestic market of fuels and lubricants in Kazakhstan.

Kazakhstan's proven oil reserves as of early 2016 stood at 30 billion barrels, according to the BP Statistical Review of World Energy.

Tengiz, Karachaganak and Kashagan are the largest oil fields in Kazakhstan. Three oil giants will be able to bring Kazakhstan's oil production to a new level in the coming years even if new oil fields are not discovered.

With the start of oil production at the Kashagan field, the forecasts of several international organizations on oil production in Kazakhstan immediately grew.

Analysts from the International Energy Agency (IEA), OPEC, the Energy Information Administration of the US Department of Energy (EIA) link the increase in oil production namely with the Kashagan field. 

URL: http://www.today.az/news/regions/167440.html

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