Business News in Brief

Kazakhstan has approved a $23 billion project to expand production facilities of the Tengiz oil field, Kurmangazy Iskaziyev, deputy chairman of Kazakhstan’s national oil and gas company KazMunayGas, said at the 21st Kazakhstan International Conference KIOGE-2013 on Oct.1. The project will bring oil field production to 38 million tons a year, the official said. “A project for Tengiz expansion has been approved,” Iskaziyev said. “Oil production will be increased from 26 million to 38 million tons a year. The project includes construction of a plant and drilling several wells.” Implementation of the project is scheduled for 2013-2018. “Although we were several months late with the approval of a technical scheme, we are still planning for the same period,” he said. “We plan that the whole expansion project will be completed by mid-2018.” “The cost of the project is estimated at $23 billion,” Iskaziyev added. The Tengiz oil field was discovered in 1979 and is one of the deepest and largest oil fields in the world. Its reserves are estimated at 750 million to 1.1 billion tons (6-9 billion barrels) of recoverable oil.

Deputy Prime Minister and Minister of Industry and New Technologies of Kazakhstan Asset Issekeshev took part in an international business forum titled “Aktobe Invest – 2013” in Aktobe. Delegations from Poland, China and the cross-border regions of Russia – Orenburg and Kaluga regions took part in the forum this year. Addressing forum participants, Issekeshev said Kazakhstan took the necessary measures to improve the investment climate in the country. This was one of the key directions of the new industrial policy of the country. Extra emphasis is being placed on attracting foreign direct investments to the country’s provinvial areas and industrial cooperation with neighboring countries. According to Issekeshev, deputy governors for investments and recently established service centres for investors must provide one-stop-shop services for investors in the regions. As Kaznex Invest Agency reported, 7 facilities worth over $300 million were launched in the Aktobe region. Another 3 investment projects totaling $2 billion are presently under implementation. A number of foreign companies are considering investments in regional economies. In particular, Japanese Sumitomo Corporation is interested in cooperation in the energy sphere and British Sun Group Global expressed interest in participation in the construction of a mining and processing complex. The akimat of Aktobe region signed 9 memorandums of cooperation at the forum.

On Oct. 2, Deputy Prime Minister – Minister of Industry and New Technologies of Kazakhstan Asset Issekeshev visited Industrialization Map construction sites in Aktobe region. One of them is the new ferroalloy plant “KazChrome”, which will be put into operation by the end of 2013. The capacity of the plant is 440,000 tons of ferrochrome a year. The cost of the project is 111 billion tenge ($719.4 million). It will allow for the creation of 500 permanent jobs. The project uses the latest world class innovative technologies. It will increase labour productivity by 3-4 times. Another project in Aktobe is a rail and structural plant with a capacity 430,000 tons a year. It includes 200,000 railroad rails and 230,000 tons of sorted products (channel bars, rails, angle bars and special sections). Upon the launch of the plant, the needs of “Kazakhstan Temir Zholy” JSC in railroad rails will be met as well as the needs of railway companies operating in Uzbekistan, Turkmenistan, Azerbaijan and other countries. Sorted products are also planned to be sold in Kazakhstan and neighbouring countries. The cost of the project is 55 billion tenge ($356.5 million). The launch of the project will allow the creation of about 400 permanent jobs. Besides, infrastructure is being built under the Business Road Map 2020. It is planned to build a 40 megawatt gas turbine power station which meets the needs of Industrialization Map projects. It is also planned to build an auc-furnace plant with a capacity of 560,000 tons of liquid steel a year in the region.

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