[stu]

Kazakhstan to export oil through US-backed Caspian pipeline

Kazakhstan President Nursultan Nazarbayev said that his oil-rich former Soviet republic in Central Asia would pump large amounts of its crude through a four-billion-dollar US-backed pipeline to be inaugurated Wednesday.

"For us this route will be one of the main ways to supply world markets," Nazarbayev said at ceremony where he signed a raft of bilateral agreements with Azeri President Ilham Aliyev.

The Baku-Tbilisi-Ceyhan (BTC) pipeline, a US-backed energy initiative, will transform the Caucasus and Turkey into an energy bridge between the Caspian and the rest of the world.

Kazakhstan: Littoral states to resolve Caspian Sea legal regime

Kazakhstan President Nursultan Nazarbayev said Tuesday that the legal regime of the Caspian Sea should be solely resolved by the five littoral states without any outside interference.

The five littoral states have already cooperated in defining a written agreement acceptable to all the littoral states and the negotiations will be continued, he added in a joint press conference with his Azeri counterpart Ilham Aliyev.

KAZAKHSTAN PLANS VAST EXPANSION OF PAYMENTS TO ELDERLY, STUDENTS AND STATE-SECTOR EMPLOYEES

Taking advantage of the windfall generated by Kazakhstan’s developing energy sector, President Nursultan Nazarbayev’s administration is expanding expenditures on the elderly, students and state-sector employees. Some analysts say the rise in state spending is designed to "buy" the loyalty of key sectors of Kazakhstani society as the country prepares for a presidential election in 2006. A sampling of opinion among students indicates that the announcement has indeed raised Nazarbayev’s approval rating.

[nth]

Kazakhstan is doing very well and has strong control over its people. They have prevented ethnic strife to split the country into two. The prosperity seems to be spreading to the masses. Keeping people working and happy. Humanitarian violations are abound, but living standards are improving.

Compare this oil rich country to Azerbaijian. Azeris are not doing as well. Their economy despite large amounts of oil revenue is not shaping up and increasing living standards. Ethnic conflicts and terrorism are about to split this country apart. Internal politics rages on preventing government reforms and enforcement to boost the country's economy and living standards.

Do you agree?

[stu]

Kazakhstan President Stresses Ties With Russia, China, US

Kazakhstan's president stressed the importance of ties with Russia on Tuesday, but he also called China and the U.S. "strategic partners."

President Nursultan Nazarbayev told Kazakh diplomats it was necessary to "make developing cooperation with Russia priority," building on close ties between the massive former Soviet republics in oil and gas, space flight and transport.

ANDIJAN EVENTS CAUSE KAZAKHSTANI OFFICIALS TO RE-EXAMINE DOMESTIC POLICIES

The recent violence in Uzbekistan is prompting Kazakhstani leaders to re-examine their domestic policies. As a result, some political analysts believe Kazakhstani President Nursultan Nazarbayev’s administration may expand economic development efforts while backing away from measures designed to tighten government control over the country’s civic sector.

[stu]

Kazakhstan concerned over events in Uzbekistan and Kyrgyzstan

The events in Uzbekistan and Kyrgyzstan caused concern in Kazakhstan, Kazakh foreign minister Kasymzhomart Tokayev told an international business conference of the Asian Community in Almaty on Wednesday.

"Kazakhstan is prepared to provide any assistance that Uzbekistan and Kyrgyzstan may need because we are loyal to the idea of regional cooperation," Tokayev said, recalling that "in 1998 three states - Kazakhstan, Uzbekistan and Kyrgyzstan - signed the agreement on internal friendship and cooperation".

[stu]

KAZAKHSTAN PREPARED TO USE FORCE AGAINST "REVOLUTIONARIES

The authorities in Kazakhstan, reacting carefully and deliberately, are preparing security agencies to use force in the event of revolutionary activity similar to events in Ukraine and Kyrgyzstan. It is predictable that the regime of President Nursultan Nazarbayev should choose to flex its muscles in order to reduce the risk of internal disorder. Yet the level of openness concerning measures currently underway to enhance the readiness and firepower of Interior Ministry forces conveys mixed signals to Kazakhstan's Western security donors

[stu]

REBUFFED BY WASHINGTON, CHINA GOES PROSPECTING IN KAZAKHSTAN

With access to energy investment opportunities in the United States blocked for political reasons, China is turning its attention to Kazakhstan.

Kazakhstan’s energy players have long courted Chinese investment. Now -- following the failed attempt by the Chinese government-controlled oil giant, China National Offshore Oil Co. (CNOOC) Ltd, to acquire the American-based Unocal – Beijing is looking for a more politically friendly environment in which it can secure a steady supply of energy for the country’s fast-growing economy.

KAZAKHSTAN'S TRANS-CASPIAN OIL EXPORT PLANS AND ITS COMPETITORS

Interviewed in the current issue of the Caspian Investor monthly, Kazakhstan's Energy and Mineral Resources Minister Vladimir Shkolnik confirms that negotiations are advancing toward an agreement on the transportation of oil from Kazakhstan to Azerbaijan and through the Baku-Tbilisi-Ceyhan (Turkey) pipeline.

China beats India for Kazakhstan oil firm

China won a huge industrial prize Monday when one of its state-owned firms beat an Indian competitor for a highly coveted central Asian oil company.

A unit of China National Petroleum Corp. outbid India's third-largest oil company and a partner by offering $4.18 billion for PetroKazakhstan Inc., a Canadian company.

[rockdoc123]

Stu posted this elsewhere as well:

ASTANA, Kazakhstan, Aug. 22 (UPI) -- China won a huge industrial prize Monday when one of its state-owned firms beat an Indian competitor for a highly coveted central Asian oil company.

A unit of China National Petroleum Corp. outbid India's third-largest oil company and a partner by offering $4.18 billion for PetroKazakhstan Inc., a Canadian company.

The victory for Beijing is consolation for being rebuffed in the United States over its attempt to buy Unocal Corp., an oil company for which another of China's state-owned, Hong Kong-based oil companies had offered top dollar.

China's growing appetite for crude oil has sent its various government-run oil companies on a global acquisition spree to secure supplies of the commodity.

Owning PetroKazakhstan gives China access to probable reserves of about 550 million barrels of oil equivalent.

The deal also furthers Kazakhstan's foreign policy goal of expanding its ties beyond Russia. If India had won the bidding, it would have had to ship the oil through Russia. CNPC, however, will be able to transport the crude oil via pipeline directly into China.

What is interesting here is this purchase makes a heck of a lot more sense for CNOOC than Unocal did. It has potential for 150,000 bopd but is currently production constrained by new government regs. Since the Chinese have zero concern regarding foreign corrupt practices act I suspect the new regs can be reversed pretty easily with a bit of yuan applied in the right places. PetroKazach's (formerly Hurricane) problems have been ongoing and all to do with dealing with the Kazach government who seem to want more and more of the revenue. I suspect the Chinese are better positioned to deal with the government...mainly because they can bring other strategic issues into play and are less hampered by any need for business transparency than a western company would be. China signed off on a deal to build a pipeline from Kazachstan through western China last year. With the pipeline in place they guarantee themselves 150 kbpd from one source rather than Unocals production which was from a number of fields in a number of jurisdictions. Smart move to my mind.

[stu]

Kazakhstan riches inspire takeover

A VISION of ten million tonnes of oil flowing down 3,000km (1,864 miles) of steel pipe lies behind the agreement yesterday by CNPC to pay $4 billion (£2.2 billion) for an obscure Canadian oil company.
Chinese construction workers began work in March in the remote western border region of the People’s Republic, laying sections of a pipeline that will bring Kazakhstan’s vast oilfields within reach of refineries supplying China’s racing industrial engine.

[stu]

No preconditions for a revolution in Kazakhstan, president says

Kazakh President Nursultan Nazarbayev does not see any preconditions for a revolution in his republic, instead prioritizing economic reforms.

The president said in a live broadcast Wednesday with a national TV station that the Kazakh economy is twice as efficient as those of Ukraine, Azerbaijan, Moldova and Georgia and has higher average wages.

KAZAKHSTAN'S TRANS-CASPIAN OIL EXPORT PLANS AND ITS COMPETITORS

Interviewed in the current issue of the Caspian Investor monthly, Kazakhstan's Energy and Mineral Resources Minister Vladimir Shkolnik confirms that negotiations are advancing toward an agreement on the transportation of oil from Kazakhstan to Azerbaijan and through the Baku-Tbilisi-Ceyhan (Turkey) pipeline.

[stu]

SCO membership in Kazakhstan's interest

Membership in the Shanghai Cooperation Organization is in Kazakhstan's greater interest, the Kazakh president said.

"We are part of Asia, and relations with Asian nations meet strategic interests of our country," Nursultan Nazarbayev said on a live broadcast carried on national TV channels. "That is why we are members of the SCO and will support it at all costs."

Kazakhstan too Rich for a Revolution — President

Kazakh President Nursultan Nazarbayev, facing an election in December, said on Wednesday people in his ex-Soviet state were too rich to stage a revolution like those that swept Ukraine and Georgia, Reuters news agency reports.

During a three-and-a-half hour phone-in broadcast live on television, Nazarbayev also said Kazakhstan, a fast growing oil producer in Central Asia, did not have a “normal” opposition and urged Kazakhs not to read pro-opposition newspapers. Asked by one viewer in the biggest city Almaty if a revolution could hit Kazakhstan, Nazarbayev said: “I am reminded of a brilliant quote by Victor Hugo: Poverty gives birth to revolutions and revolutions give birth to poverty.”

[stu]

KAZAKHSTAN’S LEADER CLEARS THE DECKS FOR ANOTHER PRESIDENTIAL RUN

Kazakhstan has pushed up its presidential election date to December 4, and the incumbent, Nursultan Nazarbayev, seems perfectly positioned to secure a third, seven-year term.

Nazarbayev, who has presided over Kazakhstan’s boom economy since the country gained independence in 1991, was formally nominated on September 9 by the Otan Party. [For background see the Eurasia Insight archive]. The presidential vote was originally scheduled for 2006, but parliament on September 7 decided to move up election-day. Nazarbayev’s main challenger in the election is expected to be Zharmakhan Tuyakbai, a leader of the For a Just Kazakhstan opposition movement.

[stu]

ASTANA ADOPTS MORE PRUDENT POLICY TOWARD ETHNIC KAZAKHS

On September 29 around 300 ethnic Kazakhs from 32 countries gathered in Astana for the Third World Congress of Kazakhs. For many participants this was their first time to see the booming new capital in the land of their ancestors. They were obviously impressed to see what great economic progress Kazakhstan has made since the First World Congress of Kazakhs in 1992, which was held in Turkistan city, a holy place that Kazakhstan's Muslims worship as the second Mecca.

[stu]

NATO not to use military facilities in Kazakhstan

NATO's Central Asia envoy Robert Simmons said here Wednesday that the alliance has no plans to use military facilities in Kazakhstan and other Caspian countries after the eviction of US troops from neighboring Uzbekistan.

　　As NATO has members in and around the Black Sea region -- Turkey, Romania and Bulgaria, it was natural for the alliance to establish and use military facilities there, Simmons said.

[stu]

NATO offers Kazakhstan support in defense planning

The NATO is ready to render Kazakhstan assistance in the questions of defense planning, development of military budget and improvement of officers’ staff, NATO Secretary General’s special representative for Caucasus and Central Asia countries Robert Simmons said at today’s meeting with deputies of the Committee for Foreign Affairs, Defense, Security of Kazakhstan Senate.During the sitting he pointed out, the mutually profitable and productive relations between Kazakhstan and NATO.

[stu]

Independent observers start monitoring of Kazakhstani pre-election campaign

The republican network of independent observers have started today monitoring of the pre-election campaign in Kazakhstan.
Till December 4 16 specialists will have been surveying the process

[stu]

Great Britain ready to back Kazakhstan’s accession to EU, WTO and OSCE presidency

Great Britain is ready to support Kazakhstan's accession to the European Union, the World Trade Organization and initiative to preside over OSCE in 2009, deputy leader of the All-Party Group for Kazakhstan of the British Parliament, deputy of the House of the Commons David Rafflee said at today’s meeting with Majilis Speaker Ural Mukhamedzhanov.

[stu]

Kazakhstan: The Democratic Path for Peace and Prosperity

The challenges of creating a modern democracy after more than two centuries of foreign domination have made the Kazakh experience a valuable one to be shared with other nations. Today, Kazakhstan has one of the world’s fastest developing economies with multibillion-dollar foreign investment and a vibrant growing democracy and is walking on the world stage as a full partner with much older countries

[stu]

KAZAKHSTAN STRENGTHENS TIES WITH NATO

Kazakhstan has taken further steps towards strengthening its partnership with the NATO Alliance, as part of its ongoing strategy aimed at improving its domestic and regional security while balancing its relations with the United States, Russia, and China. During a visit to Kazakhstan in early October, Ambassador Robert Simmons, Special Representative of the NATO Secretary-General for the Caucasus and Central Asia, denied any need or existing plans for NATO bases in Kazakhstan or elsewhere in the Caspian region. "Currently there are no sites or bases of NATO in Kazakhstan, and I do not see any need to change this situation," Simmons confirmed in an interview in Almaty on October 4

[stu]

RUSSIAN LUKOIL PLANS TO DIG DEEP FOR KAZAKH OIL

After two fruitless years exploring the Tyub Karagan deposits, Russia's Lukoil refuses to remain a bystander while major Western and Chinese companies battle for Kazakhstan's oilfields.

The most persuasive indication of the Russian drive to regain lost positions in Kazakhstan is the announcement of Lukoil's $2 billion bid to acquire all of the shares of the Canadian company Nelson Resources. The final decision will be taken as early as October 12.

[Keith_McClary]

Khazak oil row worrisome but US sees no threat

The Central Asian state's energy minister, Vladimir Shkolnik, criticised Canadian PetroKazakhstan on Wednesday for not informing the government of its proposed $4 billion sale to China's CNPC (0135.HK: Quote) and urged shareholders not to approve it next week.

His comments came as U.S. Secretary of State Condoleezza Rice was visiting the region. A senior State Department official accompanying her said it was not in Kazakhstan's interests to hamper foreign investment in the oil sector.

It's not like the Chinese were trying to buy CONOCO.