Page 17 - FSUOGM Week 40

FSUOGM PROJECTS & COMPANIES FSUOGM

Kazakhstan denies giving oil

export privileges to Vitol

KAZAKHSTAN FIRST Deputy Prosecutor General of Kazakh- 53mn tonnes of oil from the national company
stan Berik Asylov on September 29 rejected KazMunayGas, as well as from its subsidiaries
Vitol has been accusations that Kazakhstan had granted Swiss and joint ventures, or about seven percent of
Kazakhstan's biggest oil trader Vitol a privileged position on the the total export volume over a ten-year period,”
oil offtaker for over a Kazakh market, which allowed it to seize the Asylov said.
decade. lion’s share of the country's oil export market, as The share of Vitol oil sales from the oil pro-
untrue ducing enterprises controlled by KazMunayGas
Asylov argued that nearly 75% of oil exports in 2009-2019 amounted to only 2%, or 1.23mn
in 2020 have belonged to the operators of the tonnes, said deputy chairman of the board of
country’s three largest fields. Tengizchevroil KazMunayGas, Daniyar Berlibayev.
(Tengiz field) exported 29.7mn tonnes, NCOC Vitol has faced criticism of using concealed
(Kashagan field) exported 14.1mn tonnes and links with the Kazakh elite to win lucrative con-
KPO (Karachaganak field) exported 10.1mn tracts to export oil. However, the company has
tonnes. He noted that the operators of these said it complies with all international anti-cor-
three projects were exempt from the obligation ruption laws.
to supply oil to the domestic market for Kazakh- Vitol has been Kazakhstan’s biggest oil
stan's three large refineries. The remaining 25.4% offtaker for over a decade, transporting crude
of exports were covered by 58 firms, which “pri- mostly from Russian ports to refineries in
marily provide supplies to the domestic market Europe. The trader won a tender in 2016 to
for the needs of domestic refineries, and only provide $1bn to cover state-owned KMG share
then carry out export supplies,” according to the of costs at Kashagan in exchange for crude
energy ministry. shipments. The syndicated loan was raised in
“According to a report of the energy min- September 2017 by $600mn, and by a further
istry of Kazakhstan, during the period from $650-750mn the following year.
2009 to 2019, companies together exported a Prepayment deals like this are one way the
total of 752 mn tonnes of oil, of which compa- company has managed to establish its dominant
nies of the Vitol group purchased only about position.™

Week 40 07•October•2020 www. NEWSBASE .com P17