доклады, презентацииReport of the Ministry ofOil and Gas of the Republicof Kazakhstan, SauatMynbayev, at the enlargedmeeting of the MOG BoardThe Outcome of the Oil and Gas Industry-2012 andobjectives for 2013Crude Oil and Gas Condensate ProductionThis year, crude oil and gas condensate production is lowerthan that of the last year. This is related to both naturalprocesses and technical and geological reasons occurred oncertain oil and gas fields and non-scheduled repair operationsin a number of enterprises.A considerable backlog of oil production planned, inparticular, was observed at TCO due to frequent shutdowns,as well as repairs of the railway line on the Russian territory,which caused reduction in crude oil transportation.Ozenmunaygas, JSC has not reached the targets, becausedid not yet get a «speed» after unauthorized workers strikesin 2011, when there was suspended a large number of wells inthe Uzen and Karamandybas fields.The overall production reduction was affected by Kashagancommercial oil production postponed to the 1st half of <strong>2013.</strong>These are main factors.The MOG 2103 Strategic Plan sets the production profilesat 82M tons.Crude Oil and Gas Condensate Balance for 2012In general, the figures of the previous year are comparableto the results of 2011.96№2 (<strong>57</strong>), 2013
There is a slight decline in exports compared to the sameperiod the year before, which is associated with a decrease inthe imports of Russian oil. As a result, a part of the plannedexport amount was spent on the domestic market.Oil supplies to mini refineries decreased significantly,including a part of foreign oil. This is the result of purposefulwork. Given that imports of Russian oil are quoted under theAgreement concluded with the Russian Federation, the prioritywas the utilization of the Pavlodar and Shymkent Refineriescapacity. While the mini refineries mainly produce vacuumgas oil, heavy distillate fuel and oil composite. These oils arenot in demand in the domestic market, thus exported.Specific Oil ExportsSignificant changes were not observed in oil exports.Shipments decline in certain areas was associated with ageneral decline in exports.Reduction in supply to the Orenburg gas processing plantwas linked to introduction of additional processing facilitiesat KPO.KPO continues the discussion with OGPP and Gazpromof gas condensate supplies in <strong>2013.</strong> Actually, the goal isto minimize the supplies due to low sales prices of thecondensate.Crude Refining and Petroleum Products Output on ThreeMain Refineries in 2012Compared to 2011, the production of petroleum products,demanded in the domestic market, like gasoline, diesel fuel,kerosene, increased in 2012. There were problems with theloading oil to the Refinery, because it is designed for Russianoil. But, in general, the refinery plan has been fulfilled.Petroleum Products Balance for 2012Throughout the year, export of all kinds of light petroleumproducts was banned, including gasoline, jet fuel and dieselfuel. Exported were only fuel oil and other kinds of darkpetroleum products.As can be seen from the balance sheet, except for fuel oil,we are import dependent, especially on jet fuel and highoctane gasoline.On September 19, 2012, the Procedure on the Counter OilDeliveries was signed with the Russian Federation relating thepetroleum products imported from the Russian Federation tothe Republic of Kazakhstan. Currently, domestic proceduresare in progress on the ratification of the Procedure; but inaccordance with the terms of this Procedure, Kazakhstan shallsupply 1.2-1.5 million tons of oil to Russia for the petroleumproducts imported in 2012. Of course, with payment, butthe price of the oil is lower than the export price for foreigncountries.The fulfilment of the obligations under this agreement willhave an impact on the Kazakhstan budget revenues incomingin the form of the rent tax, the tax on mining and exportcustoms duties.In this regard, it was decided to increase the tolling toreduce imports from the Russian Federation. It is estimatedthat such supplies are more profitable. In 2012, the PRChandled 68 thousand tons of oil and imported 25.7K tons ofhigh-octane gasoline to RK. In 2013, we plan to process up to500-600 thousand tons in China.However, we cannot replace the entire volume of Russianimports with such operations. In particular, there is a limitto the capacity of the railway crossing Dostyk-Alashankou.At present, the issue is being worked out on the capacityincreasing by the construction of oil products pipeline on theKazakhstan – China border.In January and February, we replenish the stocks; insummers and during refineries predictive and preventativemaintenance we consume them.The situation is similar to diesel fuel and jet fuel, taking intoconsideration the imports tolled from China, as well as fromRussia, which will also be regulated as soon as the Protocol onthe counter supplies to Russia is ratified.Dynamics of Consumer Prices of RON-92, RON-80 andDiesel Fuel in the RF and RKIn 2012, as you know, the Rules were standing for thedetermination of marginal consumer prices that claimed bythe NMRA in agreement with the MOG. Thus we managed tosmooth a dependence on the spike in the world oil prices,especially in seasonal consumption peaks.But, in practice, these tools must be reasonably used;otherwise the deficit is inevitable, since all imports arecommercial supplies that no one will deliver at a loss. It isnecessary to take into account the economies of thesesupplies, when setting the marginal prices for the domesticmarket.Unfortunately, in some periods the price gap was so largethat a reverse export of diesel fuel to the Russian Federationwas observed, which led to its short-term shortages inKazakhstan.Kazenergy 97
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