Issue № 3 (102) | 2012

Posted in Newspaper

DAILY NEWS Conference # 3 (102) SPECIAL ISSUE DEVOTED TO KIOGE 2012 CONFERENCE

The country’s oil and gas sector has played a significant role in Kazakhstan having become a stable and growing economy. It was with this remark by Bolat Akchulakov, Vice Minister of Oil and Gas of Kazakhstan, that the 20th Anniversary KIOGE International Oil & Gas Conference was opened yesterday, on 4 October 2012.

According to Mr Akchulakov, over these past 20 years the conference has become an effective dialogue platform for the oil and gas business, and in the first half of the 1990s, when KIOGE was just starting out, it was also a “specific symbol of the transparency of Kazakhstan’s economy.”

As always, the event was attended by a vast and authoritative circle of politicians, diplomats, economists, and energy experts from various countries. Topics high on the agenda of the plenary sessions cover all the key issues of this sector of the economy: the status and prospects of the oil and gas industry, improving the efficiency of oil and gas exploration and production in Kazakhstan, diversification of hydrocarbon supplies, and innovative technologies in the industry.

“The country’s oil and gas industry continues to maintain a positive rate both in terms of oil and gas production growth and output of petroleum products. However, the challenges of today require not only quantitative growth but a growth in quality alongside this, especially considering the economic and environmental aspects, and foreign investment definitely plays a considerable role,” stated Mr Akchulakov.

Traditionally, KIOGE has become a place at which the main trends in the country’s oil and gas sector are announced. Among the innovations revealed on the first day of the conference, the following is particularly worthwhile to note: there is an urgent need for large-scale subsurface geological surveying operations, and in this area the Government can see one of the key factors in achieving growth in quantity and quality in the energy sector.

In his speech, Nurlan Sauranbayev, Vice Minister of Industry and New Technologies of Kazakhstan, expressed his gratitude to the conference organisers for the opportunity provided to find answers to topical industry issues.

“Over the 20 years that KIOGE has been active, the entire concept of approaches to the oil and gas industry has changed altogether,” said Mr Sauranbayev.

“Further development of such major oil and gas projects as Kashagan, Karachaganak, and TCO will be implemented with due consideration of new viewpoints, in particular on such issues as developing local content and the participation of Kazakhstani staff,” he stressed.

Daniyar Berlibayev, First Deputy Chairman of the Board for Corporate Development of KazMunayGas, greeted the conference participants on behalf of his manager, Lyazzat Kiinov, who for the first time in 20 years was unable to attend KIOGE in person. Mr Berlibayev himself extended warm thanks to the conference organisers, ITE Group plc and Iteca, for arranging the event.

“I can assure you that KazMunayGas will always be open to dialogue and will welcome new ideas and opportunities,” said Mr Berlibayev.

In response, Sir Andrew Wood, Senior Advisor to ITE Group plc, expressed his confidence that this attitude is shared by all participants of the conference.

The development of one of the main tasks of Kazakhstan’s foreign policy - the strategic partnership between Kazakhstan and the European Union in the energy sector - was the subject of a speech by Patricia Flor, EU Special Representative for Central Asia. Ms Flor also began her speech by congratulating KIOGE on its anniversary, calling the conference and exhibition “a unique opportunity to reflect the entire potential that Kazakhstan’s oil and gas industry possesses and the challenges it has to face today.” The EU has made energy issues a top priority of its policy in the region, and oil is predominant in Kazakhstan’s exports to EU countries.

“Energy cooperation between the EU and Kazakhstan is key to further growth and modernisation of the industry. The EU, in its energy strategy, bases itself on the belief that the diversification of export routes is fundamentally important for energy security. Alternative export and transit routes will expand your - Kazakhstan’s - market opportunities, and will enhance Kazakhstan’s ability to provide internationally competitive prices,” emphasised Ms Flor.

As a precondition for this, the support and cultivation of a favourable investment climate was mentioned. The EU’s own oil and gas production is declining, so it is obvious that, despite the current economic crisis and progression in the development of alternative sources of energy, Europe will continue to be dependent on oil and gas imports, while Kazakhstan is and will remain an important partner of the EU in achieving this task.

In her speech, Ms Flor paid special attention to the Trans-Caspian Pipeline project. This project is very important for both EU and Central Asian countries, the prosperity of which it can strengthen. EU countries, for their part, will maintain the highest environmental standards in the construction of such a pipeline.

How to develop Kazakhstan’s oil and gas industry in the context of global financial uncertainty? This is the question that David Moran, Ambassador of the United Kingdom to Kazakhstan, made the central theme of his presentation.

When the giant Kashagan field becomes operational in the first half of 2013, it will be a huge step in Kazakhstan’s emergence as one of the world’s largest oil producers. Nevertheless, Kazakhstan can become even more attractive to foreign investment. To this end, it is necessary to follow such principles as honesty, transparency and predictability.

Daniel Stein, Senior Advisor to the US State Department for Eurasian Energy, said that since its launch as an independent state, Kazakhstan has demonstrated the success that can be achieved through international cooperation. The country enjoys a very good reputation among international investors, and it is imperative that Kazakhstan maintains its long-term commitment to the integrity and stability of contracts and that it continues to resolve investment disputes through direct negotiation.

“In the current global economic conditions, it is more important than ever to have reliable access to energy. The Caspian region, including Kazakhstan, can provide these resources. We are looking with hope to the future to work with our partners in the region to bring these supplies to the market,” said Mr Stein.

Peter van Leeuwen, Ambassador of the Netherlands to Kazakhstan, also expressed his great appreciation of the importance of the KIOGE conference for the development of Kazakhstan’s oil and gas industry, which, in turn, is “the major driving force of the country’s economic development, the results of which are known to everyone.” Kazakhstan is increasingly becoming a major player in the development of energy policy in this part of the world, the ambassador believes.

“KIOGE has always been the centre of international activity for the oil and gas industry. Its huge number of participants once again demonstrates the significant interest shown by the international community towards the subject. Just as Astana and Almaty complement each other, the same is true of KIOGE and the KAZENERGY Forum,” said Mr van Leeuwen.

Of the speeches from Kazakhstani participants, one that attracted particular attention was made by Baltabek Kuandykov, President of the Society of Petroleum Geologists of Kazakhstan, prepared jointly with the famous geologist Bazar Yeskozha. Seeing as today, according to Mr Kuandykov, Kazakhstan produces more than 80 million tons of oil, in the next decade this figure can increase to 130-140 million tons. Kazakhstan’s potential allows the country not only to confidently meet its own domestic needs for many years to come, but also to be among the main exporters of oil and petroleum products.

More on the KIOGE 2012 exhibition and conference will soon be available at www.kioge.com.

VIP-OPINIONS

Bolat AKCHULAKOV
Vice Minister of Oil and Gas
Republic of Kazakhstan

20 YEARS OF SUCCESS

“Dear ladies and gentlemen, colleagues and friends, it is my pleasure to welcome all participants of this anniversary conference and exhibition on behalf of the Ministry of Oil and Gas of Kazakhstan. It is a great honour for me to take part in the opening of this event. KIOGE is the same age as independent Kazakhstan. Over the past 20 years, the conference and exhibition have provided a stable dialogue platform bringing together representatives of all companies of the oil and gas sector. The slogan of this 20th conference is KIOGE – 20 Years of Success, and this really is true. I am sure that the guests present here today include those who have participated in all the previous conferences and exhibitions. I would like to express my hope that a further 20 years to come will pass under a similar slogan. I would like to wish all of you good luck, successful work and good health. See you next year.”


Daniyar BERLIBAYEV
First Vice Chairman of the Board
for Corporate Development
KazMunayGas National Company, JSC

WE TAKE CARE OF PEOPLE’S COMFORT AND LIFE

“KazMunayGas National Company takes care of people’s comfort and life, we are consumer-oriented. The construction of the Beineu-Bozoi-Shymkent gas pipeline will allow gas supply to be provided to more than 500 populated localities, some of which have never had gas supply before. In the near future, our plans include provision of gas supply to the country’s northern regions. For us, as a national company, the domestic market has been and will remain the number one priority.

For 20 years already, we have been getting together in Almaty on these beautiful autumn days. I would like to express my thanks to the organisers of the event, Iteca and ITE Group plc, for the opportunity to enjoy these annual meetings with colleagues, where we exchange opinions and generate new ideas. KazMunayGas is happy to support this event.”


Sir Andrew WOOD
Senior Advisor
ITE Group Plc

TRADITIONS OF FRIENDLY MEETINGS

“It is a great honour for me personally to take part in KIOGE this very year. The jubilee exhibition and conference represent a landmark event not for Kazakhstan alone but also for the entire world, which has been gaining momentum and getting to a higher professional level with every coming year. Over these twenty years since its inception, KIOGE has developed its own traditions. We can take pride in creating a unique platform to hold negotiations and friendly meetings. From the bottom of my heart, I would like to thank all participants in the event for their commitment and longstanding contribution to our common cause.”

THE KIOGE 2012 EXHIBITION MEETS ITS GUESTS OF HONOUR

Yesterday on 4 October, the official opening ceremony of the KIOGE 2012 exhibition took place, attended by guests of honour and the organisers of the event.

The stage for the opening ceremony was set by a folk instrument orchestra playing famous Kazakh national music pieces. The numerous guests of the event were addressed by welcome speeches from Bolat Akchulakov, Vice Minister of Oil and Gas of the Republic of Kazakhstan, Daniyar Berlibayev, First Vice Chairman of the Board for Corporate Development of KazMunayGas NC JSC, and Sir Andrew Wood, Senior Advisor of ITE Group Plc.

Bolat Akchulakov emphasised the relevance of KIOGE’s B2B forum. “The Ministry of Oil and Gas of Kazakhstan, together with KazMunayGas, is making great efforts to develop the main oil pipeline system. The oil industry is an important component of the fuel and energy industry of the Republic of Kazakhstan, covering the areas of oil production, processing and transportation. The top priority task we are facing today is to fill the market with domestically manufactured oil products. KIOGE is one of the leading events of the energy sector and a significant platform to discuss topical issues in the industry such as this”.

Since its launch, the KIOGE exhibition and conference has been held with the annual participation and official support of the Ministry of Oil and Gas of the Republic of Kazakhstan, KazMunayGas National Company JSC, the KAZENERGY Association, the Almaty City Administration and diplomatic missions of exhibiting countries. The regular organisers of KIOGE are the Kazakhstani exhibition company Iteca and ITE Group plc, an international group of exhibition companies with partners in Russia, Germany, Turkey, China, Poland, Azerbaijan and the UAE.

A CULINARY SURPRISE

An informal gathering and tasting session of exquisite dishes from Kazakhstan’s chefs was arranged for conference participants and exhibitors of KIOGE 2012 by the British-Kazakh Society.

A welcome address was again delivered by Lord Fraser, an honorary participant of the annual KIOGE exhibition and conference. In his speech, he pointed out the growth and strengthening of business ties between Kazakhstan and the United Kingdom.

Every year, the organisers of the reception look to prepare an interesting and memorable programme for the guests. This time, visitors were offered the opportunity to see a cooking competition take place in the ballroom of the Intercontinental Almaty hotel. Three contenders prepared savoury snacks and main courses from Kazakh cuisine for the guests, and the culinary masterpieces from the chefs were assessed by a qualified jury. The British-Kazakh Society awarded the winner a trip to London to take part in a professional chef’s programme, with accommodation in one of the British capital’s best hotels.

COCKTAIL RECEPTION FROM SCHLUMBERGER

Yesterday on 4 October, a cocktail reception accompanied by the enchanting sounds of Kazakh national musical instruments took place in the Premium Ballroom of the RIXOS Almaty Hotel to mark the opening of the KIOGE 2012 conference.

The reception was organised by Schlumberger together with the partners - the organisers of KIOGE. Musicians performing famous classical masterpieces set the stage for a wonderful evening. The evening’s unfailing host, Sanat Burakhanov, told the audience in captivating terms about the history of the Silk Road and the traditions and everyday life of the hospitable Kazakh people. A recital of the strength of Kazakhstan’s legendary men was illustrated by the Dosbatyrov brothers, who presented a weights juggling show. Throughout the evening, the guests enjoyed performances by the country’s leading artists, including Saltanat, a distinguished state folk dance company; Romina, an opera singer; Zhanel Seitgabdiyeva, the youngest holder of the Shabyt International Competition Grand Prix, professionally playing the kyl-kobyz, a Kazakh folk musical instrument; Dostar, a live music group; and the Megapolis ballet show.

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