Keep up to date with the latest news from Kazakhstan and the team at Kazopp.
Posted 27/04/2015
It’s well known that supplies of easily extractable oil and gas around the world are running out, forcing oil exploration companies to look to more difficult sources. But could the challenge faced by today’s oil industry be tomorrow’s opportunity for UK SMEs?
Posted 18/12/2014
As 2014 draws to a close, we take a look at how the market conditions in Kazakhstan have changed over the year and conduct a review of what this means in terms of opportunities for SMEs looking to export goods and/or services over the year ahead.
Posted 15/10/2014
The operators of Kazakhstan’s largest oil fields, Kashagan, Karachaganak and Tengiz announced last month that they were to establish a joint venture engaged in the drilling and engineering fields.
Kazakhstan’s First Deputy Energy Minister, Uzakbai Karabalin, was keen to emphasise that “With [this] active phase of expansion.. high-tech types of service and equipment will be needed, and we will need to use every opportunity to establish competent local companies.” He went on to say that “[The] optimal option is to set up joint ventures with world leaders with the assistance of advanced technologies.”
It is well known that Kazakh companies often lack the experience, knowledge for complex oil, gas sector services, creating a huge opportunity for foreign companies to forge a way into the market to bridge the gaps in expertise. And this is no ordinary overseas market. One of the five Central Asian countries, Kazakhstan is rich with hydrocarbon reserves. The country’s production comes mainly from five onshore fields – Tengiz, Karachaganak, Aktobe, Mangistau, and Uzen – and two offshore fields – Kashagan and Kurmangazy, which are both located in the Caspian Sea.
The recoverable oil reserves of the Kashagan field are estimated at 11 billion barrels, whilst total geological raw material reserves stand at 35 billion barrels. In addition, natural gas reserves are estimated at over 1 trillion cubic metres. The Tengiz oil field is one of the deepest and largest oil fields in the world. Reserves of the deposit are estimated at 750 million to 1.1 billion tons (6-9 billion barrels) of recoverable oil. Karachaganak is another of the world’s largest oil fields. Its reserves amount to 1.2 billion tons, while those of natural gas are 1.35 trillion cubic metres.
Total oil production in Kazakhstan amounted to 81.7 million tons last year which is 3.2 percent more than in 2012. The forecasts show after 2020 around two million barrels of oil will be produced in Kazakhstan per day. The country plans to produce 83 million tons of oil, 41 billion cubic meters of gas, as well as to process 14.7 million tons of oil in 2014.
There are lots of companies in Kazakhstan who are looking to collaborate with overseas companies with the right skills and expertise. If you your SME is part of the high tech services industry or manufactures specialist equipment, particularly with applications in the oil/gas sector, now is the time to consider the type of growth your business could achieve by exporting to Kazakhstan. With many years experience of trading in country, we can help you make the connections you need to get started and smooth the way to working successfully in Kazakhstan.
Interested? To find out more about the opportunities available, call us on 01935 315055 or get in touch via the website.
Posted 04/08/2014
It’s a well known fact that much of the world’s easily accessible oil has now been exhausted. Whilst we are not about to run out of oil any time soon, the challenges for the future will be in finding ways to bring oil supplies which are not so accessible online.
There is plenty of anecdotal evidence from oil/gas field projects, particularly the Kashagan field in western Kazakhstan as to operational difficulties and delays. That field alone is believed to contain 13 billion barrels of crude oil.
Kashagan has suffered significant delays due to the presence of hydrogen sulphide and as a result of gas leaks discovered in the pipelines. There are also difficulties in managing the project due to extreme weather conditions – ice surrounds the oil field for lengthy periods throughout the year.
The delays that such issues or mistakes cause are a major headache for the large oil companies – when something goes wrong, it costs a HUGE amount of capital.
Might your SME hold the solution to the issues facing Kazakhstan’s oil industry?
It will take a good degree of innovation and specialist skill to solve these issues and these are qualities often found in manufacturing SMEs. But how many are confident that they have the time and resources to consider exporting to an unfamiliar country like Kazakhstan, far from UK shores?
And yet taking that step could be the big break most SME owners can only dream of.
If your SME might hold the key to solving some of these issues, exporting to Kazakhstan could send your profits soaring. For advice and support which can make a real difference in easing the way to growth into this exciting market, contact us.
Posted 16/06/2014
Did you know that Kazakhstan is the biggest energy producer after Russia among the former Soviet republics? The country plans to produce 81.8 million metric tons of oil this year, which equates to about 1.65 million barrels a day.
Once the $50 billion Kashagan project, the country’s biggest oil field, located in the Caspian Sea, is up and running again, Kazakhstan could enter the top ten global oil exporters.
The energy-rich country has also recently reported setting new goals to develop the production and processing of hydrocarbon resources and electricity. This forms part of the government’s latest concept for the development of the country’s fuel and energy complex, in which there are plans to invest around $2 billion.
Kazakhstan ranks 12th in the world for its oil reserves, and 20th for gas reserves. The country has plans to increase the gross volume of oil and condensate production to nearly 112 million tons by 2030. In order to increase the volume of its hydrocarbon reserves, particularly in the Caspian basin, Kazakhstan authorities know that attention to the subsoil use and geological exploration needs to be increased.
Kazakhstan’s Oil and Gas Ministry plans to implement a package of measures, including increasing the ration of oil production, carrying out measures on innovational development, and establishing a research support infrastructure.
What does this mean for UK SMEs?
If your SME could hold the key to resolving some of the issues faced in the energy sector in Kazakhstan right now or to improving production efficiency, potential to become a part of the success story is immense. With the right advice, tapping into the export market to Kazakhstan could transform your business.
Contact us today if your SME is ready to take the next step.
Posted 05/03/2014
Production will be resumed on the Kashagan field during the second half of the year, according to Sauat Mynbayev, head of national oil firm KazMunaiGas (reported by Tengri News). Read More…