KazMunaiGas (KMG), the national oil company of Kazakhstan today announced its intention to establish a major presence at Caspian Energy Hub (CEH), the fourth in a series of energy cities conceived by leading GCC Islamic investment bank Gulf Finance House. In a move that underlines the heavy momentum building on the CEH initiative, KMG will also be calling on all foreign energy companies to follow their lead as Kazakhstan bids to double domestic oil production and triple gas production by 2015.
KMG is one of the largest oil producing companies in Kazakhstan and is currently developing 46 oil fields in the west of the country. KMG fields account for approximately 1.7 million barrels per day of between 9 and 17 billion barrels in provable reserves throughout Kazakhstan. With a strategy of continued growth driven by further exploration and selected acquisitions, KMG have chosen the technical, educational, research and human resource components that Caspian Energy Hub will offer to assist in the pursuit of their commercial goals.
In close collaboration with PFC Energy and in partnership with the Government of Kazakhstan, GFH announced CEH as the fourth in its burgeoning series of energy cities in April of 2008. The initiative is an integrated business cluster designed entirely to serve the needs of the future domestic energy sector and the international industry players who will play a significant role in harvesting the vast Kazakh hydrocarbon resources.
KazMunaiGas Chairman, Kairat Kelimbetov commented on the announcement today saying, “Efficiently harvesting the tremendous domestic hydrocarbon resources in Kazakhstan to the benefit of the regional economy and future generations in Kazakhstan calls for a careful balance of wisdom, experience and vision. In CEH we’ve found a concept offering each of these virtues, integrating all the components we believe are central to the development of a 21st century energy platform. KMG has ambitious plans in the years ahead and we have every confidence our goals will be realized alongside a host of global energy players as part of this visionary energy community.”
Kazakhstani Governor of Mangistau, Kairat Kusherbayev added, “Both Gulf Finance House and PFC Energy offer a rare caliber of energy sector thinking. The experience they share in catering to the current and anticipated demands of the energy sector are clearly evident in the CEH initiative. They demonstrate extraordinary foresight but more importantly they know how to translate an idea into a sustainable platform delivering commercial success and well-being to future generations. These virtues make them a natural partner to Government’s looking to build a prosperous future for their communities.”
Gulf Finance House Deputy-CEO, Mehran Jamsheer added, “We know that energy resources can bring extraordinary benefits to emerging economies. In all our energy cities we seek a platform that offers commercial opportunity to business through the agglomeration of key services and the long term delivery of enhanced socio-economic well being. Furthermore, KMG’s announcement today confirms the desire amongst major energy players for cutting edge energy platforms.”
