Oil and Gas - The Times Of Central Asia

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Kyrgyz-Turkish Oil Refinery Nears Completion in South Kyrgyzstan

On July 8, Minister of Energy of the Kyrgyz Republic, Taalaibek Ibraev inspected the construction of the Kyrgyz-Turk K-OilGas oil refinery in the village of Kok-Talaa in the southern Batken region. An agreement between Kyrgyztransneftegaz (Kyrgyzstan) and Kyrgyz-Turk K-OilGas (Turkey) on the joint development of the North Sokh and Chongara Galcha oil fields was signed back in March 2023. According to General Director of Kyrgyztransneftegaz Aibek Chodonov, over 90% of the refinery’s construction has now been completed, and preparatory work is currently underway at four oil wells. The commission of the refinery is scheduled for the end of September. Investment in the project amounts to $91 million, and once in operation, the refinery will have a daily capacity of 500 tons of oil products. At present, the refinery has 51 employees, including 10 Turkish specialists and 41 local citizens, with 150 new jobs on the horizon from October. Kyrgyzstan has some oil deposits in the south of the country but today, imports almost all of its oil products (gasoline and diesel) from Russia.

business and economy Critical minerals Oil and Gas International Cooperation

Kazakhstan and South Korea to Cooperate in Critical Minerals, Oil and Gas

During South Korean President Yoon Suk Yeol’s visit to Kazakhstan on June 12, agreements were made on cooperation in critical minerals and metals, as well as in the oil and gas industry. A Memorandum on partnership on critical minerals and metals was signed by the Ministry of Trade, Industry and Energy of the Republic of Korea and the Ministry of Industry and Construction of Kazakhstan. The document represents the first step towards the establishment of an international chemical analytical laboratory in Kazakhstan and aims to strengthen cooperation between the two countries in the supply of lithium, nickel, cobalt, tantalum, tungsten, beryllium, niobium, titanium, rhenium, phosphorus, copper, aluminum, chromium, manganese, and rare earth metals. An additional Memorandum on security and development of the critical minerals supply chain was signed by the Korean Institute of Geoscience and Mineral Resources, Korea’s SK Ecoplant Co. Ltd., and the Ministry of Industry and Construction of Kazakhstan. The agreement provides for a comprehensive exchange of information on supply chains for critical minerals and metals, joint geological exploration and production of critical minerals and metals, and the mining and processing of lithium to produce lithium batteries. Kazakhstan’s national oil and gas company KazMunayGas and Hyundai Engineering, South Korean EPC engineering company, signed an agreement on cooperation in the oil, gas and petrochemical industries. Aimed towards exploring opportunities for cooperation in the above, it includes provision for technology exchange, specialist training, and the transfer of technical knowledge and experience.

Oil and Gas International Cooperation

Kazakhstan and Congo Ready to Cooperate in Oil and Gas

On June 11, Chairman of the Board of Kazakhstan’s national oil and gas company KazMunayGas (KMG), Askhat Khasenov attended a meeting in Astana with Adviser to the President of the Republic of Congo for strategic issues and international negotiations, Francoise Joly, and General Director of Congo’s national petroleum company SNPC (Societe nationale des petroles du Congo), Maixent Raoul Ominga. The Congolese officials opened discussions by stating that after Nigeria and Angola, their country is Africa’s third largest player in the oil and gas sector. It was stated that whilst SNPC actively cooperates with international companies (Total Energies, Chevron, Eni), the company seeks to attract new investments to maximize the potential of its energy projects. The parties exchanged views on potential cooperation in the oil and gas sector, including trade in oil and petroleum products and human capital development, and agreed to work towards the signing of a cooperation agreement between KMG and SNPC. On 10 June, in preparation for the state visit of the President of the Republic of Congo, Kazakhstan President Kassym-Jomart Tokayev received Ms. Joly. In addition to identifying promising areas of bilateral cooperation, Tokayev expressed his readiness to strengthen contacts with the Republic of Congo.

Oil and Gas International investment Employment Energy

Green Light for Hydrocarbon Development in Kazakhstan’s Caspian Sea Sector

In a statement issued on 4 June, Kazakhstan’s Ministry of Energy announced that work on an oil and gas project to develop the Kalamkas-Sea and Khazar fields is now ready to begin. The Kalamkas-Sea and Khazar Fields Joint Development Project will be implemented by Kalamkas-Khazar Operating, a specially created venture comprising Kazakhstan’s national oil and gas company KazMunayGas (50%) and Russian oil company Lukoil (50%). Construction of the steel offshore platforms will begin in 2026 at Kazakh shipyards to ensure the earliest possible start of production at the Kalamkas-Sea field. The project aims to attract over $6 billion in direct investment and during its development phase, create up to 2,000 jobs. Once in operation, a further 300 posts will be added. The Kalamkas-Sea field, 50km long and 6km wide, sits in the central part of the north-eastern sector of the Caspian Sea, 64 km offshore at a depth of 6-7 meters. The Khazar field is located 30 km southwest of Kalamkas-Sea and 65 km northwest of the Buzachi Peninsula. The Kalamkas-Sea and Khazar fields are the only fields in the Kazakhstan sector of the Caspian Sea with confirmed reserves.

Afghanistan Oil and Gas

Uzbekistan Interested in Afghan Oil and Gas

TOLOnews reports that Russian and Uzbek companies have expressed their intention to develop oil and gas fields in Afghanistan, whilst the interest of other Central Asian countries in this field is also growing. "Recently, we had meetings with Uzbek companies," Homayoon Afghan, spokesperson for the Ministry of Mines and Petroleum said. "The Ministry has announced several oil and gas sites to attract investment, including the Herat oil and gas fields.” Plans for the exploration and extraction of oil, gas and other minerals became one of the main topics discussed during the visit of the delegation of Uzbekistan to Kabul. At that time, it was reported that Uzbekistan wanted to buy more than 1 million tons of coal from Afghanistan. Also, on May 21 of this year, Uzbekistan sent humanitarian aid to the people affected by floods in Afghanistan. This aid included 48 tons of flour, 22 tons of rice, 100,000 canned goods and 44 tons of pasta products, 96 water storage tanks of 1,000 liters, etc. The UN World Food Program has reported that more than 300 people have died and 1,000 homes have been destroyed in floods caused by heavy seasonal rains in Afghanistan.

Bilateral Trade Oil and Gas

Turkmenistan’s Gas and Türkiye’s Plans to Become a Gas Hub

By Robert M. Cutler A series of ongoing political consultations between Turkmenistan and Türkiye continued on 25–26 April, as a Turkmen delegation led by Deputy Minister of Foreign Affairs Ahmet Gurbanov visited Ankara, hosted by Turkish counterpart Burak Akçapar. Beyond the regular bilateral agenda of political-diplomatic, trade-economic and cultural-humanitarian cooperation, the two sides emphasized the implementation of bilateral agreements reached at the third Antalya Diplomatic Forum in early March, particularly the prospects for cooperation in the energy sector. On 1 March 2024, Turkmenistan and Türkiye signed two documents — a memorandum of understanding (MoU) and a letter of intent — aimed at strengthening cooperation in the natural gas sector. In theory, this seems to be a positive development for the two countries as well as for Europe. The two possible routes for Turkmen gas to reach Türkiye and Europe are (1) via the Caspian Sea and Azerbaijan, and (2) through Iran's existing pipeline infrastructure via a gas swap agreement. Neither one is likely to happen soon. The project to export Turkmen gas to Europe through a shore-to-shore high volume pipeline, at 31 billion cubic meters per year (bcm/y) is no longer alive after various parties have failed to realize it over the past quarter-century. It was bruited when it was announced that Turkmen President Serdar Berdimuhamedov planned to visit Brussels in late 2023 (which ended up not happening) and definitively killed when the initiative by American company Trans-Caspian Resources (headed by a retired U.S. ambassador to Turkmenistan) failed to persuade Ashgabat to construct short low-volume (8–11 bcm/y) "Platform Option" pipeline in the Caspian Sea. Gas "swaps" and Türkiye’s ambitions The idea of a "Turkish gas hub" arose from Russia's search to depoliticize trade between Gazprom and European firms by facilitating a platform where Gazprom's origination of the gas would be obscured and anonymized. Buyers and sellers could meet through Turkish intermediation. Türkiye, however, seeks to draw advantage by imposing the condition of long-term contracts with Gazprom for gas sales at below-market prices. This would guarantee a role for the Turkish intermediaries and, moreover, ensure for them a profit margin through mandatory service fees. "Swap" operations mean an exchange of gas amongst Turkmenistan, Iran and Azerbaijan; however, this would involve only a few billion cubic meters. Even if all participants agree, several questions still remain: Will swap transactions be profitable, given the price of gas in Europe? Even if Iran agreed to a Turkmen gas swap, would Tehran execute the agreement in good faith? In fact, Tehran would prefer to offer its own gas to Turkish and European markets, rather than transit competitive Turkmen gas through his territory. In addition, the gas that Azerbaijan produces for export already has contracted buyers under long-term agreements. Azerbaijan would be interested in the Turkish gas hub only if it should in future produce surpluses of gas that cannot be sold under long-term contracts. Then, such surpluses could be sold at a gas hub under short-term contracts, assuming that transit and profitability are...