Azernews.Az

By Aynur Jafarova

Kazakhstan will reach the maximum level on oil export in 2025, Kazakh Oil and Gas Minister Uzakbay Karabalin said on September 17 at the governmental meeting.

Presenting the draft concept on effective management of natural resources and use of proceeds from the commodity sector the minister said the maximum level of Kazakh oil exports, that is more than 90 million tons, is expected in 2025. At the same time minimizing oil imports, as well as providing fully domestic consumption will be achieved by the state in 2020.

The draft concept on effective management of natural resources and use of proceeds from the commodity sector, approved by the Kazakh government, was developed by the Ministry of Oil and Gas.

According to Karabalin, as a major export routes for the transportation of oil to foreign markets are projected pipelines, including CPC, Atyrau-Samara and Kazakhstan-China.

The oil and gas minister went on to say that the period of easily extractable oil is under completion in Kazakhstan.

"The period of easily extractable oil near completion in Kazakhstan," he said. "Today, the processes of search and development of deposits are associated with the complexity of several conditions and a high level of varied expenses."

Karabalin included the rise in the world oil prices to the objective factors affecting the industry.

Describing the current state of the oil and gas industry in the country, he noted a number of advantages as well.

Kazakhstan is among the top ten countries in the world in reserves that allows producing oil for at least another 50 years. There are also significant prospects of finding new reserves, the oil and gas minister said.

Another advantage of the industry is the possibility of fully providing all three Kazakh oil refineries by its own resources and, therefore, domestic oil products market.

Meanwhile Karabalin listed a number of issues which weaken the position of the Kazakh sector. They include the high cost and specificity of Kazakh oil, high transport component, urgent need to intensify work on the replenishment of raw materials, as well as the high attractiveness of oil exports.

Kazakhstan's proven oil reserves stood at 30 billion barrels in early 2013, according to BP.

OPEC predicts Kazakhstan's oil production to hit 1.69 million barrels per day (bpd) in 2014 while according to EIA, this figure will stand at 1.65 million bpd in 2014.

Production of crude oil increased in Kazakhstan in January-August 2013 compared to the same period of 2012. Over this period, oil production, including gas condensate, amounted to 54 million tons, or 3.1 percent higher than over the same period of last year.