BAKU, Azerbaijan, July 31. Kazakh national oil and gas company KazMunayGas (KMG) and China National Petroleum Corporation (CNPC) have discussed further cooperation on a number of strategic oil and gas projects in Kazakhstan, KMG reports
The discussions took place during a meeting in Beijing between KMG Chairman Askhat Khassenov and CNPC President Zhou Xinhuai.
The parties reviewed progress on the expansion of the Shymkent oil refinery, one of Kazakhstan's key energy projects, which aims to increase the plant's annual processing capacity from 6 million to 12 million tons by 2030.
According to KMG, the feasibility study for the project is currently under development, while the technological audit, market research, LP modeling and selection of licensors have already been completed. Work is also underway to optimize the project configuration in order to reduce capital expenditures.
The sides also discussed the Urikhtau gas project in Kazakhstan's Aktobe region, where field development is continuing ahead of full-scale production. Equipment procurement is underway and construction and installation work has begun. Raw gas from the field will be processed at the Zhanazhol Oil and Gas Processing Complex operated by CNPC-Aktobemunaigas. The Central Urikhtau gas-condensate field, with reserves of 29.4 billion cubic meters, is expected to produce up to 1 billion cubic meters of gas annually.
"The implementation of these projects is aimed at fulfilling the Head of State's instructions on modernizing existing refineries, maximizing the utilization of current refining capacities and accelerating the development of new gas fields," KMG said.
The meeting also covered the activities of the Mangistaumunaigas joint venture. As of July 1, the company had produced 3.012 million tons of oil this year. KMG noted that work is underway to expand the resource base and develop satellite fields with combined geological reserves exceeding 20 million tons.
In addition, the parties discussed measures to replenish reserves at mature oil fields in Kazakhstan's Kyzylorda region. KMG has completed a comprehensive assessment of exploration and appraisal opportunities at the Kazgermunai and PetroKazakhstan Kumkol Resources assets. The company proposed that KMG and CNPC approve a unified exploration strategy and identify priority exploration projects.
The sides also reviewed plans to expand the Kazakhstan-China oil pipeline system. Following the completion of the necessary corporate procedures by the Chinese side, KMG and CNPC have begun developing a feasibility study for the project. The initiative предусматривает increasing the capacity of the Kenkiyak-Atyrau oil pipeline to 15 million tons per year and the Kenkiyak-Kumkol pipeline to 20 million tons per year.
The meeting concluded with both sides expressing readiness to step up cooperation across all key areas.
