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Minister: Oil to Pavlodar petrochemical plant on swap scheme after 2014

Oil&Gas Materials 30 March 2011 16:59 (UTC +04:00)

Kazakhstan, Astana, March 30 / Trend, A. Maratov /

On Wednesday, Kazakh Oil and Gas Minister Sauat Mynbayev told journalists that after 2014, oil will be supplied to the Pavlodar Petrochemical Plant on the swap operations scheme.

"By agreement with the Russian Federation, approximately 6.5 million tons of oil, which today is supplied from Russia, will be supplied to the Pavlodar plant in Kazakhstan without dues until 2014. After 2014 we will be obliged to provide supplies to the Pavlodar Petrochemical Plant of our oil or the oil which will be exchanged with Russia, in the "swap"-operations mode," Mynbayev said.

It should be recalled that the Pavlodar Petrochemical Plant is the only Kazakh oil refinery that is sufficiently technologically oriented to refine oil from fields of Western Siberia in Russia.

Mynbayev believes that after 2014 half of oil volume (6.5 million tons) will be supplied via internal pipe and the other half through a "swap" operation, the essence of which lies in the fact that three million tons will be supplied to Russian companies via the Atyrau-Samara pipeline. They will then supply the oil to the Pavlodar Petrochemical Plant.

As was previously reported, the oil refining volume at three Kazakh oil refineries amounted to 13.5 million tons in 2010.

The Pavlodar Petrochemical Plant, built during the Soviet Union, has a design capacity of 7.5 million tons.

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