Kazakhstan, Astana, Jan. 10 / Trend D. Mukhtarov /
The share of Chinese companies in oil production in Kazakhstan will be reduced once the Kashagan project is launched, head of the Association of Cross-border Cooperation in Kazakhstan, Marat Shibutov told Trend on Thursday.
"The share of Chinese companies in Kazakhstan's oil and gas sector will reduce each year.
Firstly, this is due to the fact that oil extraction will be launched in Kashagan this year and the total amount of produced crude oil in the country will continue to grow through the field's development. Secondly, the Chinese own old onshore fields, reserves of which are gradually depleting, "Shibutov said.
In Shibutov's view, the information about the Chinese companies' share in Kazakhstan's oil industry exceeding 40 per cent in 2013 spread earlier by one of the Kazakh news agencies, is not related to the actual state of affairs.
"According to preliminary estimates, by autumn 2013, Chinese companies will control more than 40 per cent of Kazakh oil and this figure is expected to account for half the annual oil production in the republic in future," Kazakh KazTAG agency reported earlier citing an anonymous source.
"China's share will significantly grow once KazMunaiGas Exploration Production (KMG EP) acquires shares in Kazakhoil Aktobe, Kazakhturkmunai and Mangistau Investments BV from KazMunaiGas, since the China Investment Corporation and its subsidiary companies already own 30 per cent of KMG EP," the source said.
According to the source: "China has a greater stake in Kazakh oil than Kazakhstan itself and ,in general, anyone in the country. It surpassed 30 million tons and continues to grow."
Meanwhile, Kazakh political scientist Eduard Poletayev said in an interview with Trend that reports about Chinese expansion has repeatedly appeared in the Kazakh media earlier and were discussed by the opposition in a particularly strong manner.
"Such information to some extent escalates public discontent and heats up the atmosphere. This is a typical sinophobia characteristic for small states adjoining major countries, whose economies are naturally pressurising small countries' economies in varying degrees, "Poletaev said.
"Latin America is almost as afraid of the influence of the U.S. and there are many examples. Consequently the information from an anonymous source on Chinese expansion in Kazakhstan's oil industry may be considered as a purposeful (or accidental) pressure over the minds of citizens.
However so far I imagine the whole picture reflecting our position as of those 'under Chinese influence'. We need an accurate evidence base", Poletaev said.
In his view, this information is not likely to pursue a specific goal on provoking Kazakh society.
"However, we must admit to the fact that this information resulting in certain actions is taken by those responsible for the aforementioned sector in the country," the analyst concluded.
Meanwhile, as reported by KazTAG with reference to its anonymous source, experts and competent authorities of Kazakhstan have been informed about the expansion of Chinese companies, but try to avoid publicity. After a public outcry on the proposed lease of some Kazakh lands to China, the authorities avoided making comments on the oil issue, so it is difficult to estimate the amount of the share.
"The complexity of calculating the proportion of any participant in the oil industry is due to the abundance of intermediate firms outside Kazakhstan. These are offshore zones and zones with tax benefits, the documents for which are processed on surrogates and relatives. However, the relevant agency is usually always aware of who stands behind which offshore account, "an anonymous source said.
"Chinese businessmen are not rushing to transfer all of Kazakh raw materials to their homeland and there are some good reasons for that. It is not a secret that many Chinese managers in Kazakhstan are relatives of party and government officials of higher and middle level.They do not hesitate in earning money for the family clan as well. Therefore, creation of 'grey schemes' and the unnoticeable at first glance diversification of Chinese oil companies in Kazakhstan allows the creation of unaccounted funds for the production and sale of petroleum products and most importantly their output to Europe directly from our country," the source said.
Earlier, China Radio International reported that about one-third of Chinese millionaires have settled overseas.
