Kazakhstan Sees 14.2% Increase in Oil Transportation Volume in Q1 2024
Kazakhstan’s Mainline and Sea Oil Transportation Volume Increases by 14.2% in First Quarter of 2024
According to a report by KazMunayGas (KMG), Kazakhstan’s national oil and gas company, the mainline and sea oil transportation volume in Kazakhstan saw a significant increase of 14.2% to 21,541 tons in the first quarter of 2024 compared to the same period last year.
The report also highlighted that the volume of oil transported through Kazakhstan’s main pipelines grew by 7.9% to 18,081 tons, driven by higher export volumes to Europe and an increase in oil transit and shipments from the port of Aktau.
Furthermore, seaborne oil transportation volume witnessed a remarkable jump of 65.2% to 3,460 tons. This increase was mainly attributed to Azerbaijani oil being transported via the Baku-Tbilisi-Ceyhan pipeline in the Mediterranean Sea, as well as higher transportation volumes in the Caspian Sea along the routes from Aktau port to Makhachkala port and Baku port.
In terms of production, oil and gas condensate production in Kazakhstan rose by 1.7% to 6,064 tons, while associated and natural gas production (before re-injection) increased by 4.6% to 2.5 million cubic meters. However, the volume of hydrocarbon processing at Kazakh and Romanian refineries saw a decline of 6.3%, dropping to 4,626 tons from the previous 4,936 tons.
Notably, oil production at the Tengiz field increased by 2.1% to 1.5 million tons (132,000 barrels per day), with associated gas production rising by 3.4% to 839 million cubic meters. On the other hand, KMG’s share of oil production at the Kashagan field decreased by 1.7% to 780,000 tons (68,000 barrels per day) due to limited capacity for reinjecting and processing associated gas, with gas production standing at 501 million cubic meters.
At the Karachaganak field, oil and condensate production increased by 3.5% to 291,000 tons (25,000 barrels per day), while gas production surged by 13% to 638 million cubic meters, facilitated by the restored ability to receive raw gas from the Orenburg Gas Processing Plant.
Overall, oil and condensate production from operating assets saw a growth of 2.2% to nearly 3.5 million tons (279,000 barrels per day). This increase was largely driven by KMG acquiring a 60% stake in the Dunga field in the Mangystau Region last November. Gas production from these assets also increased by 2.4% to 543 million cubic meters, with the Rozhkovskoye gas condensate field in the West Kazakhstan Region contributing to the growth.
Regarding financial matters, the Kazakhstan Stock Exchange (KASE) reported that KMG’s Board of Directors proposed distributing the net profit of 960 billion tenge (US$2.1 billion) for 2023, with 300 billion tenge (US$675.9 million) allocated for dividend payments to shareholders and 660 billion tenge (US$1.4 billion) to remain at KMG’s disposal. The dividend per common share remains at 491.71 tenge.
