FSU OGM: Kazakhstan’s big oil find

Local authorities in Kazakhstan’s oil-rich western Mangistau region have reported the discovery of what could be the region’s biggest oil find since the country’s independence in 1991.

A power gush of oil was reported at an exploration well drilled by a local company called Meridian Petroleum, the Mangistau provincial government said in a statement on February 26. The field has been named after celebrated Soviet-era oilman Khalel Uzbekgaliyev. Its oil appears to be low in sulphur, which should make it easier to process and transport, giving it higher value. Further investigation is needed to determine its reserves, the government said.

Mangistau Province accounts for 25% of oil and condensate production in Kazakhstan. The region flows around 360,000 barrels per day (bpd) of oil and 3bn cubic metres per year of gas. However, many of its fields were first developed in the Soviet era and are now mature, with output in decline.

The new field’s owner Meridian has links with Kazakh politician Sauat Mynbayev. The reported billionaire served as the country’s oil minister between 2010 and 2013 and is the current CEO of national railway company Kazakhstan Temir Zholy.

Over in Russia, state gas exporter Gazprom enjoyed a 7.8% bump in production in the first two months of the year on the back of very cold weather in Russia and across Europe.

The company produced 89.9bn cubic metres of gas in January and February, according to preliminary data published on March 1. Its sales to the domestic market climbed 19.5% year on year to 68 bcm, while exports to the Far Abroad, meaning Europe plus Turkey minus the countries of the former Soviet Union, soared 32.3% to 34.3 bcm.

“Due to severe cold snaps and snowfalls, natural gas demand in Russia and Europe went up in February,” Gazprom said in a post on social media. “Against this backdrop, we continued to provide reliable gas supplies to our consumers.”

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