China’s share in Kazakh oil production rises to 22 percent - newspaper

energy

China’s share in Kazakh oil production rises to 22 percent - newspaper

By SRI ⋅ June 9, 2009 ⋅

(SRI) - CNPC’s recent purchase of a 50-percent stake in MangistauMunaiGas will increase its total share of oil production in Kazakhstan to 22 percent, a local financial newspaper reported citing government data.

In 2008, companies with China’s participation produced 19.7 million tons of crude oil. China’s share alone was 13.6 million tons, 19.3 percent of total output. Kazakhstan as a whole produced 70.6 million tons of crude oil in 2008.

Chinese companies reportedly have stakes in 15 oil producing companies in Kazakhstan including the recently acquired MangistauMunaiGas. MangistauMunaiGas is expected to produce approximately 5.5 million tons per year, thus further increasing China’s share in Kazakhstan’s oil production.

China’s share in the country’s output will start decreasing when the huge Kashagan field starts commercial production in 2014. Kazakhstan plans to nearly double its total current production by the end of next decade when the field reaches full capacity. Kashagan is being developed by a consortium of international oil companies and the national oil company KazMunaiGas but no Chinese company has managed to secure a stake in this ultimate prize of Kazakh hydrocarbon riches.

KazMunaiGas (KMG) and CNPC Exploration and Development Company (CNPC E&D) had signed an agreement in April to jointly acquire the production assets of MangistauMunaiGas, an independent Kazakh producer.