China controls around 30% of oil production in Kazakhstan, the national company of Kazakhstan states

Almaty. April 21. Silkroadnews – China controls around 30% of oil production in Kazakhstan, Ardak Kasymbek, Managing Director for Economics and Finance of JSC “National Company “KazMunaiGas”” (KMG) states, KazTAG reports.

“Now China is a very active player in Kazakhstan. There are different estimations saying at present they control from 25% to 30% of production (of oil – Silkroadnews) in Kazakhstan,” said A. Kasymbek at Fitch Ratings conference in Almaty on Thursday.

“Among the most recent deals I have mentioned: they (...) have bought LUKOIL share in “KazakhOil-Aktobe” (LLP – Silkroadnews) and will accrue their presence in Kazakhstan if succeed in this at the political level. They still do not take part in our large (projects – Silkroadnews) meaning “Tengizchevroil” and Karachaganak fields, yet their participation in Kashagan conveys a great deal to us,” he added.

According to KMG managing director, in 2015 Kazakhstan extracted 79.5 million tons of oil and condensate, 80% of them, i.e. 63 million tons, were directed for export.

“Of these around 8% - 5 million tons – was the Chinese imports, i.e. exports to China. In principle, despite China’s slowing economic growth, there is a growth in China’s overall global consumption. We believe the same trend could be applicable regarding Kazakhstan: there will be China’s consumption growth (...), it will gradually substitute Europe’s consumption growth,” A. Kasymbek added.

“Moreover, these are the issues to take into account: e.g. last year CNPC entered the Kashagan project with a share of 8%, that is the whole volume of CNPC share will go to China,” he also noted