Kazakhstani oil production to remain flat in 2007 – Energy and MineralResources Minister

Kazakhstan expects to produce 65 mln tonnes of oil and gas condensate in 2007, which is about the same level as in 2006, Energy and Mineral Resources Minister Baktykozha Izmukhambetov said at a Thursday meeting of the Energy Ministry collegiate in which Prime Minister Karim Masimov took part.

“The sector’s task [for 2007] is to produce 65 million tonnes of oil and to bring oil refining at oil refineries to 12.5 million tonnes,” Izmukhambetov said. “Gasoline production should be 2.8 million tonnes, diesel fuel at 3.5 million tonnes, fuel oil at 3.2 million tonnes and kerosene at 384,000 tonnes.”

Kazakhstan produced 64.8 mln tonnes of oil and gas condensate in 2006, 5.5% more than in 2005, according to a ministry press release.

“There will not be much of an increase in 2007, because we produce most of our oil onshore and these fields are old. Production is falling at these fields,” Izmukhambetov told reporters after the meeting.

“We will see a significant growth in production starting in 2008, because we are expecting a jump in production from the TengizChevroil project,” he said.

The second phase of the project will be finished at TengizChevroil at the end of 2007 and “production volume [from the Tengiz field] will increase by 10 million tonnes-12 million tonnes in 2008,” Izmukhambetov said.

“Instead of the 13 million tonnes produced under the project today, production will grow to 20 million tonnes-22 million tonnes, and even to 25 million tonnes,” he said.

“Of course, there will be a large increase in production at the end of 2009-2010 when production begins under the Kashagan project,” he said.