Chinese Influence on Kazak Oil to Grow
Chinese Influence on Kazak Oil to Grow
Increasing Chinese influence in the Kazak energy sector is inevitable following President Nursultan Nazarbaev’s recent Beijing visit to conclude yet another oil deal, say NBCentralAsia analysts.
The president went to Beijing in late December to sign an agreement on constructing a pipeline through Kazakstan to link the Caspian Sea shelf with western China. The plan is to construct a new pipeline connecting Kenkiyak and Kumkol in western Kazakstan to the existing Atasu-Alashankou pipeline.
Analysts suggest that constructing this supplementary line will help fill the Atasu-Alashankou pipeline, which is currently not being used at full capacity.
However, China is already a considerable player in the Kazak oil and gas industry.
The China National Petroleum Corporation, CNPC, bought PetroKazakstan in 2005, giving it oil and gas deposits in the Turgai basin and the third largest oil reserves after ChevronTexaco and TengizChevroil.
And an agreement signed on December 31 gives the China International Trust and Investment Corporation, CITIC, the right to open up the Karajanbass oil and gas deposit, which has proven oil reserves estimated at around 40 million tonnes.
NBCentralAsia analysts suggest that if this new project is realised, the Chinese presence in the country’s energy industry will increase even further.
“The construction of the new strip of the oil pipeline will give an opportunity to transport oil [to China] from the deposits of the Aktubinsk region that are controlled by CNPC,” said one energy expert.
Analyst Yaroslav Razumov agrees that Chinese influence will continue to grow, despite some government and parliamentary apprehension. In November, parliamentary deputies expressed concern at the growing presence of Chinese investors in the lucrative oil sector, and said CITIC must not be allowed to acquire total control of Karajanbass.
“Chinese companies will still remain behind the American ones on the total oil recovery, but they have significantly outpaced all companies on getting assets and implementing energy infrastructure projects in recent years,” said Razumov.
(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region)
The president went to Beijing in late December to sign an agreement on constructing a pipeline through Kazakstan to link the Caspian Sea shelf with western China. The plan is to construct a new pipeline connecting Kenkiyak and Kumkol in western Kazakstan to the existing Atasu-Alashankou pipeline.
Analysts suggest that constructing this supplementary line will help fill the Atasu-Alashankou pipeline, which is currently not being used at full capacity.
However, China is already a considerable player in the Kazak oil and gas industry.
The China National Petroleum Corporation, CNPC, bought PetroKazakstan in 2005, giving it oil and gas deposits in the Turgai basin and the third largest oil reserves after ChevronTexaco and TengizChevroil.
And an agreement signed on December 31 gives the China International Trust and Investment Corporation, CITIC, the right to open up the Karajanbass oil and gas deposit, which has proven oil reserves estimated at around 40 million tonnes.
NBCentralAsia analysts suggest that if this new project is realised, the Chinese presence in the country’s energy industry will increase even further.
“The construction of the new strip of the oil pipeline will give an opportunity to transport oil [to China] from the deposits of the Aktubinsk region that are controlled by CNPC,” said one energy expert.
Analyst Yaroslav Razumov agrees that Chinese influence will continue to grow, despite some government and parliamentary apprehension. In November, parliamentary deputies expressed concern at the growing presence of Chinese investors in the lucrative oil sector, and said CITIC must not be allowed to acquire total control of Karajanbass.
“Chinese companies will still remain behind the American ones on the total oil recovery, but they have significantly outpaced all companies on getting assets and implementing energy infrastructure projects in recent years,” said Razumov.
(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region)
