Baktykozha Izmukhambetov

Baktykozha Izmukhambetov ( _kk. Ізмұхамбетов, Бақтықожа Салахиденұлы is the Minister of Energy and Mineral Resources in the Government of Kazakhstan. [http://www.itar-tass.com/eng/level2.html?NewsID=10859419&PageNum=0 Kazakhstan intends to boost oil production to 150 mln tons by 2015] ITAR-TASS]

Caspian Sea petroleum

In an article published on 5 October 2006 in "Kazakhstanskaya Pravda", Minister Izmukhametov said the Government of Kazakhstan plans to increase the petroleum output to 150 million tons by 2015. "The prospects of the growing production of hydrocarbons are laid on the development of the Kazakh sector of the Caspian Sea." According to "ITAR-TASS", forecasts predict "62.4 million tons of oil," a 1.6% increase from 2005, [http://www.interfax.com/3/199209/news.aspx Kazakhstan could up oil, condensate production 1.6% in 2006] Interfax] and "27.5 billion cubic meters of gas will be produced in Kazakhstan in 2006."

Izmukhametov said the Nazarbayev administration was pursuing a "multi-vector policy, which gives access to the most attractive outlets and ensures the utmost effective use of the pipeline networks. Considering the planned oil production growth in western Kazakhstan, a gradual enlargement of the Atyrau-Samara oil pipeline throughout capacity to 25 million tons a year is being discussed. Kazakhstan is cooperating with other shareholders of the Caspian pipeline consortium project in order to bring the oil pipeline's throughput capacity to the design level of 67 million tons of oil a year. The republic should get maximum profit from those resources, which it possesses. Using the mineral wealth, we should give a boost to our economy, and not to remain the republic living only on raw materials."

Kazakhstan-Turkmenistan-Iran pipeline

Izmukhametov noted that Kazakhstan could export oil through Iran, saying, "The long-term perspective of Kazakh oil exports doesn't exclude the possibility of realizing the Iranian direction. In particular, preliminary studies on the Kazakhstan-Turkmenistan-Iran oil pipeline project are being carried out." However, Kazakhstan "also shows interest in the Burgas-Alexandropolis oil pipeline project." He said that if this pipeline became operational then oil from the Caspian Sea and Russia could reach Southeast Asia, India and the United States. [http://www.itar-tass.com/eng/level2.html?NewsID=10857746&PageNum=0 Kazakhstan considering possibility of oil exports through Iran] ITAR-TASS]

Visit to India

Izmukhambetov visited New Delhi, India on 13 and 14 October 2006. He announced on 13 October that the Kazakh government had offered Indian joint venture company Oil and Natural Gas Corporation a 25% stake in the Satpaev block in the Caspian Sea. ONGC After he met with Indian Petroleum Minister Murli Deora, he told reporters that ONGC's stake "may be increased later to not more than 50% when the block starts producing oil." R.S. Butola, ONGC's Managing Director, estimated the Satpaev block has 1.6 billion barrels of oil, and said his company wants 50% of the block. [http://www.rigzone.com/news/article.asp?a_id=37095 Kazakhstan Offers 25% Stake to ONGC-Mittal JV in Oil Block] RIGZONE]

China

CITIC agreed to purchase Karazhanbasmunai from Canadian-based, Indonesian owned Nations Energy for $1.9 billion on 26 October 2006. Izmukhambetov traveled with Deputy Prime Minister Karim Masimov, Transport and Communications Minister Serik Akhmetov, and Finance Minister Natalya Korzhova to Beijing, China from 16-17 November 2006 in an effort to boost bilateral relations. Izmukhambetov expressed his opposition to the deal to the Parliament on 16 November before he left for China. Parliamentary members have also stated opposition, worrying over China's control over Kazakhstan's resources. [http://asia.news.yahoo.com/061116/3/2t0ec.html Kazakhstan wants to call off CITIC oil deal -report] Yahoo! Asia News] [http://www.hri.org/news/balkans/rferl/2006/06-11-21.rferl.html#23 China, Kazakhstan strengthen ties] Kazinform]

Nuclear program of Kazakhstan

Izmukhambetov and Sergei Kiriyenko, chief of the Russian Federal Atomic Energy Agency, signed a three-part agreement on 7 December 2006 in which Russia pledged to assist Kazakhstan in its nuclear program in return for shipments of uranium from Kazakhstan to Russia, where the uranium will be enriched. The two officials signed the agreement during a ceremony in Tabak-Bulak in southern Kazakhstan. Mochas Zhakishev, President of Kazatomprom, Kazakhstan's national atomic company, and Vladimir Smirnov, Director of Russian company Tekhsnabexport, also signed a deal in which Tekhsnabexport will provide information regarding construction, transportation and logistics to help Kazakhstan develop its nuclear program. Ivan Phenomenon, chairman of the board of the Eurasian Development Bank, signed the third part of the agreement, which grants EDB funding for the joint projects. Russia already agreed earlier in 2006 to help Kazakhstan build two nuclear power plants. [http://www.earthtimes.org/articles/show/12360.html Kazakhstan, Russia strike nuke deal] Earth Times] [http://au.news.yahoo.com/061207/19/11p8o.html Russian-Kazakh uranium company aims to dominate market] AFP]

Kiriyenko said Russia's aim is not to "reinforce, with our Kazakh partners, our position in the market. We aim to dominate the market" through the newly created Zarechnoye joint venture, which began extracting uranium on 7 December 2006. [http://www.rferl.org/featuresarticle/2006/12/7a6ac3d6-425b-45c4-be91-3449940069b9.html Kazakhstan, Russia Inaugurate Joint Uranium Venture] RadioFreeEurope/RadioLiberty]

Only three days earlier, on 4 December, Kazakh Government and European Union officials signed a memorandum of understanding in Brussels that discusses cooperation in energy and transportation construction. President Nazarbayev and European Commission President José Manuel Durão Barroso praised the deal, saying it laid the foundation for nuclear energy cooperation. Some analysts attributed the memorandum to a desire on behalf of the EU to diversify their sources of energy, most of which comes from Russia. [http://www.iii.co.uk/news/?type=afxnews&articleid=5881794&subject=economic&action=article EU and Kazakhstan sign agreement on closer energy ties] Interactive Investor]

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