II Eurasian Energy Forum KAZENERGY

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II Eurasian Energy Forum KAZENERGY

On the 6th and 7th of September 2007 the II Eurasian Energy Forum «KAZENERGY» held its work in Astana. The goal was to discuss topical issues of the development of the oil and gas and energy industry: a review of analytical data, development of proposals and recommendations, coordination of common approaches to the creation of effective regulatory mechanisms and practical tools of the key sector of the economy of Kazakhstan. 

The forum was opened by the Prime Minister of the Republic of Kazakhstan K.K Massimov and Chairman of the Association «KAZENERGY» T.A Kulibayev. 

“The Republic of Kazakhstan as a full member of the global economy is one of the centers of sustainable and stable development including the energy sector”, said Karim Masimov the Prime Minister of the Republic of Kazakhstan in his opening speech to the Forum. 

Speaking about the development of the oil and gas industry the Prime Minister mentioned the problems associated with the development of the Kashagan field. Karim Masimov said that "The Government of Kazakhstan is ready to engage in an open dialogue to address the project issues early, while I want to say publicly that we will strictly curb the illegal actions of those who try to violate the rules of the Kazakhstan legislation and ignore the national interests of our country."

The situation with the Kashagan project is considered by the Government as a special case, the legitimate interests of potential and actual investors in Kazakhstan will not suffer.
“Kazakhstan is a reliable and stable partner for abiding by contractual obligations and acting for their stability. The Kazakh Government will correct its position only with respect to those who are unable to fulfill their obligations”, said the prime minister. 

 
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The first working day of the event began with a discussion of strategic issues for the oil and gas and energy industry. During the plenary session there were presented reports of Vladimir Shkolnik, the deputy head of Presidential Administration of RK, Sauat Mynbayev, Minister of Energy and Mineral Resources, Marat Tajin, Minister of Foreign Affairs, Krymbek Kusherbayev, Mayor of Mangistau oblast, Ted Etchitson, Deputy Managing Director of Chevron International Exploration and Production, Edward Chow, Senior director of the department of Energy Center of Strategic Studies, U.S. and Louis Affleck, President of BG International Ltd.in Kazakhstan.

Forum continued with the work of sections "The main trends of the oil and gas industry", "Social and environmental aspects of the oil and gas and energy projects in RK", "Current status and prospects of energy development of Kazakhstan." There were presented reports by the top managers of the Ministry of Transport and Communications of RK, Ministry of Agriculture of RK, Ministry of Labor and Social Protection of RK, Ministry of Education and Science of RK, Akim of Kyzylorda oblast, the Sustainable Development Fund "Kazyna", World Bank and European Commission, the heads of major foreign and domestic companies, foreign financial, analytical and scientific institutions. 

During the forum the President of the Association «KazEnergy» Timur Kulibayev was awarded a certificate of honorary member of the Caspian Integration Business Club. This organization, comprising over 100 companies of thirty States, has been created to promote regional ties among nations, strengthen communication between government agencies and private business as well as the development of the integration processes in the energy and the environment.

As a result of the Eurasian Energy Forum II there has been signed a Memorandum on the establishment of the Caspian Information Initiative.

The Memorandum suggests a mutually beneficial exchange of information between participants in the Initiative, creating a dialogue platform for discussing the challenges facing the region; supporting contacts and increasing spheres of interaction between media, public organizations and commercial companies of the Caspian region.

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 RESOLUTION

Eurasian Energy Forum II KAZENERGY

 Participants of the II Eurasian Energy Forum KAZENERGY ascertain the increasing role and responsibility of the oil and gas and energy sector, which development is a priority in building a competitive economy of Kazakhstan.

The Energy Forum welcomes in the person of the highest authorities the Prime Minister of the Republic of Kazakhstan, heads of the Committees of Parliament and deputies, representatives of the Government and local authorities, heads of ministries and departments, as well as corporate executives of the energy sector, financial institutions, academics and representatives of public organizations, foreign and local media, reports and recommendations on a strategy of further development of the oil and gas and energy sector, the effectiveness of public-private partnerships, managing the state assets in the industry, economic competitiveness, sustainable development and transparency, issues of energy supplies and saving, environmental security, vocational training, and other topics.

Participants of the II Eurasian Energy Forum KAZENERGY in the persons of public authorities of the Republic of Kazakhstan, enterprises and organizations of the oil and gas and energy industry, research and educational institutions, public and other organizations have adopted the following decisions:

1. The Interdepartmental Commission on the issues of the development of the oil and gas and energy sector, as well as the Coordinating Board to continue to work on relevant activities.

2. Support the development of concepts, laws and programs aimed at the development of new alternative directions in energy, providing a set of incentives for support.

3. In order to supply the growing needs of the economy in power, together with measures for reconstruction and modernization of the existing power facilities and construction of new ones to facilitate the introduction of high-tech, energy-efficient technologies that meet environmental requirements and actively contribute to the creation in the power industry of a favorable investment climate.

4. In order to implement the Initiative of Transparency in the extractive industries to step up efforts to join the Initiative, to provide information support and maintenance of the process to create a positive image of the Kazakhstan's business, recommend KazEnergy Association to act as a donor of the implementation of the Initiative, as well as to carry out systematic work on the promotion and coordination of domestic products and services to large international companies.

 5. Develop proposals to amend the legislation to encourage the development of the manufacturing industry, in particular, the rapid modernization of the existing and construction of modern oil refineries and petrochemical plants.

6. Examine the issues of efficiency and capacity of the oil production including measures of a differentiated approach to tax incentives for oil recovery from the uneconomic deposits or resumption of oil production from marginal wells. To explore various optimization models and increase of oil recovery on the basis of the international experience, as well as the international approaches to the licensing of subsoil use.

7. Noting the importance of the impact of energy on the environment and the conservation the potential of the non-renewable energy resources for future generations to engage in the fuel-energy balance the renewable energy sources, improve pollution monitoring for power utilities, to accelerate the transition to cleaner technologies and production of modern standards of fuel.

8. Considering the significant staffing needs for the energy projects in Kazakhstan, to work out proposals, in the light of the international experience, of the existing in the Republic educational facilities and priority needs of the industry in professionals, to stimulate the development of programs of research and development activities, to expand the domestic market of engineering services.

9. Realizing the importance and timeliness of the initiative of the Energy integration in the countries of Shanghai Cooperation Organization to submit proposals on ways to achieve a qualitatively new state of the energy interaction of the SCO countries.

10. Develop proposals for improving the environment and occupational safety.

11. Study the subject of prospects for the development of the gas fields including aspects of processing, transportation, recycling and environmental issues.

12. Work on the development of the energy potential of Kazakhstan in accordance with the reserves and a place on the world energy map and explore the benefits and challenges of operating in Central Asia

13. Explore the issues related to the optimal development of the transport potential of Kazakhstan from the perspectives of development of gas fields.

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