By Alexander Miller, energy markets consultant. Eurasia Business News, June 15, 2024 – Article n°1029.
In the first five months of 2024, Kazakhstan supplied almost 500,000 tons of oil to Germany. By the end of 2024, deliveries of more than 1 million tons are expected, reports the press service of the Kazakh national oil and gas company (NC) KazMunayGas.
On June 14 in Astana, Askhat Khassenov, Chairman of the Board of Directors of the oil company, met with Marko Marsili, General Director of the Karachaganak Petroleum Operating BV (KPO) consortium. They discussed, among other things, the export of Karachaganak oil “ in light of increased demand for Kazakh hydrocarbons in Western Europe “.
In 2023, oil from the Karachaganak field in a volume of almost one million tons was delivered to Germany for the first time via the transportation systems of KazTransOil and Transneft, the company said.
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A significant portion of Kazakhstan’s oil exports (1.5 million barrels per day, or 1.5% of global supply) pass through Russian pipelines. At the end of 2022, Germany agreed with Kazakhstan to purchase oil to replace Russian oil. For 2024, the volume of oil transiting through the Druzhba pipeline to Germany agreed by Astana and Moscow amounts to 1.2 million tonnes.
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Since the beginning of 2023, German authorities have stopped the import of Russian oil via Druzhba. Since then, raw materials have been supplied by pipeline through the territory of the Russian Federation by the operator Karachaganak Petroleum Operating BV This is the operator of the PSA project (Production Sharing Agreement) for the development of the Karachaganak field (also developed with the participation of foreign companies).
In June 2023, the companies KazMunayGas and Rosneft Deutschland (since September 2022, by decision of the German authorities, the company has been placed under the supervision of the German Federal Network Agency) signed an agreement on the supply of 100,000 tons of oil per month via Druzhba. This year, the terms of the agreement were extended until June inclusive. At the same time, the Ministry of Energy of Kazakhstan estimated the potential for oil exports to Germany via this pipeline at 5 million tons per year.
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In early March 2024, Kazakh Energy Minister Almasadam Satkaliyev reported that Astana had started consultations with Germany to increase oil supplies to German refineries via Druzhba to 2 million tons in 2024.
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