Azernews.Az

By Aynur Jafarova

Kazakhstan intends to study the experience of Indonesian Pertamina oil and gas company in drilling deep wells in the offshore fields, Kazakh Oil and Gas Minister Uzakbai Karabalin said at a meeting with president and CEO of Pertamina Karen Agustiawan.

"I believe that your experience in drilling deep water wells both onshore and offshore will be a good help for your colleagues from KazMunaiGas," the Kazakh minister said.

He recalled that Kazakhstan has long been engaged in the oil production.

"This is the 114th year we have produced oil, but we have carried out drilling and geological exploration only offshore. Only in recent years we began to enter the Caspian Sea. Therefore, your experience is interesting for us," Karabalin added.

He also invited the Indonesian company to participate in tenders for development of oil and gas fields in the country.

"It is known that your company's policy doesn't allow geological exploration in other countries, but if there is such an opportunity, you can participate in tenders for development of new territories in Kazakhstan jointly with KazMunaiGas," he said.

Furthermore, Karabalin went on to say that Kazakhstan is interested in Pertamina's technology on use of liquefied natural gas (LNG) and compressed natural gas (CNG).

"Our country has a large territory, where the settlements are scattered far apart and the delivery of gas to them via gas pipeline is economically difficult," Karabalin said. "Therefore we seek new opportunities to use LNG not in the form of large tankers, but as fuel for combines and for heating small villages of 30-50 courtyards. Therefore it is interesting for us to what extend the technologies of your company are affordable so that we could implement them."

Head of the Indonesian company, in turn, expressed an interest in the proposals of the Kazakh side.

"Regarding our experience on use of LNG and in drilling, we intend to send our proposals to the Kazakh side. We hope that the cooperation will be bilateral. We open our door to KazMunaiGas and hope that it will participate in our projects," Agustiawan said.

She reminded that Pertamina has been engaged in the technologies on use of LNG for 30 years.

"Now we are trying to use LNG for large commercial trucks and buses on long routes and the CNG in taxis and public transport. We set the goal to diversify our energy sources and make them more ecological," she noted.

According to her, considering the recent requests of Kazakh side, it is necessary to make amendments to the memorandum of cooperation between KazMunaiGas and the Indonesian company Pertamina, signed in May 2012, with a focus on drilling and LNG.

Pertamina is an integrated state-owned oil and gas company with experience in the exploration, development and production of oil and natural gas.

Indonesia is interested in cooperation with Kazakhstan in transport, logistics, trade, investment, agriculture, oil and gas, and tourism.

The trade turnover between Kazakhstan and Indonesia almost tripled in the first half of 2013 compared to the same period of 2012 and hit $150.5 million.

The volume of mutual trade between Kazakhstan and Indonesia was $23.828 million in 2010. It reached $35.1 million in 2011 and $57.3 million in 2012.

Vice-Minister of Economy and Budget Planning of Kazakhstan Timur Zhaksylykov said earlier that trade turnover between Kazakhstan and Indonesia may reach $300 million by late 2013.

"There is a significant growth on trade turnover. We consider that it is due to the growth of exports of oil and gas products to Indonesian market. In 2012 the trade turnover constituted about $65 million. During the first six months of 2013 this indicator increased to $150 million. If the trend continues, we will achieve $300 million by late 2013," the vice minister said.