In preparation for the KIOGE-2016, Minister of Energy Kanat Bozumbayev gave an interview to ITECA, in which he in particular noted that "... due to a significant drop in oil prices, oil companies are also forced to cut funding for their activities in the framework of the Work Program implementation. Since 2013, there has been the following dynamics of the reducing number of drilled wells: 1865 in 2013, 1715 in 2014, 939 in 2015.
That is, the number of wells drilled has actually decreased by almost 2 times.
If in 2013, the cost of exploration was 185 bln. tenge, the cost of exploration decreased to 109 bln. tenge in 2015, i.e. there was around 41% decline of expenses for exploration".
The Ministry is actively working on the "Subsoil Use Code of the Republic of Kazakhstan" project to support investments in exploration (simplification of procedures for granting exploration rights for poorly studied areas, granting the right to conduct geological study with subsequent exploration rights granting, reduction of the tax burden of subsoil users by combining Tax and Customs Codes).
In connection with this, the problem of the investment attractiveness of the oil industry of the country is declared as a key theme of the upcoming plenary session of the International Conference on "Oil and Gas", held under the official support of the Ministry of Energy of the Republic of Kazakhstan, "KazMunayGas" NC" JSC, KazService.
Magzum Mirzagaliev, the Vice-Minister of Energy of the Republic of Kazakhstan, was invited to open the meeting on "Investment Attractiveness of the Oil and Gas Sector of Kazakhstan. Medium Term Market Review".
Rashid Zhaksylykov, the Chairman of the Presidium of the KazService Union of Oilfield Service Companies of Kazakhstan, will talk about a new initiative designed to increase transparency of the market – formation of the oilfield service companies registry. The discussion on the registry will be open to the public with involvement of international experts. As the experience of other oil states shows, open formation of such a registry will make the market more civilized and transparent, and will make the rules of the game on it clear to all participants.
Working meetings of the conference will be devoted to the urgent issues of the industry. A seminar on "Human Resources for the Oil and Gas Industry" will be held by Oleg Parakhin, the CEO of Elite staffing company, the structural unit of «The Central Asian Foundation for System Studies".
A round table on "Modern Technologies in the Field of Geological Exploration" will be held by Mukhit Saurambaev, a Senior Vice President for Exploration of "KazMunayGas" NC" JSC. Participants will discuss application of modern technologies in the field of exploration, evaluation of deposits effectiveness, optimizing costs in exploration and production. The key operators of the country will be able to discuss the current issues at the round table dedicated to the oil and gas transportation issues.
Also, the delegates will have a presentation on "Investment Agreement in the New Market Conditions": the Best Practices of Investment Agreements, the Pros and Cons of the Customs Union, the Formation of a Common Market* of Gas, Oil and Oil Products of the EAEC (*On 31 May 2016 at the level of the EAEC state members heads, the Supreme Eurasian Economic Council adopted the Concept of the EAEC common gas common market formation).
Rzabek Artygaliyev, "Tengizchevroil" LLP* will make a speech at the round table dedicated to the mutually beneficial cooperation in the framework of development of Kazakhstani content. (* TCO - one of the industry leaders in implementation of the program on increasing local content.)
Great expectations are associated with the KIOGE exhibition segment. To date, participation in the exhibition has been confirmed by more than 150 participants, 60 of wich will present their products for the first time. A separate national stand will be presented by South Korea. In 2015, only one company from South Korea - FLOTRON Corporation Limited took part at the exhibition. However, after the signing of a memorandum on cooperation between the Union of Machine Constructors of Kazakhstan and KOAMI Association of Engineering of Korea, it was decided to expand the participation in the exhibition. In 2016 at KIOGE, a separate stand will be presented with the products of the leading companies engaged in the production of oil producing and oilfield equipment - COENS Company, KJF CO, LTD, KSTPlant, Elyon Industry, Woojoo M & E, Samik Corporation.
The KIOGE exhibition presents the latest developments in the field of extraction, processing and transportation of oil and gas, software for oil refinery, achievements in the environmental field, new solutions in the petrochemical industry, geophysical services and project research, projects on provision of service at oil and gas fields.
We kindly remind that the 24-th Kazakhstan International Exhibition and Conference on "Oil and Gas" (the KIOGE, 2016) will be held on October 5-7 this year at the "Atakent" exhibition center, with the active support of Karachaganak Petroleum Operating BV, "Tengizchevroil" LLP, North Caspian Operating Company, "HMS Group" JSC ,VELAN, Ltd., "Techinvest" CC Ltd.
In order to provide the most complete and current information about KIOGE to all the interested parties, ITECA developed a Global Oil & Gas Kazakhstan mobile app, which can be download from the APP Store and Play Market.