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| 29 June 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Politics and Macroeconomics |
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In
2003 Investments Into Railway Transport Sector In Kazakhstan Totalled
USD 335 Million – Ministry Of Transport And Communication |
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The
Investment volume into the railway transport sector in Kazakhstan in
2003 totaled USD 335 Million, the Kazakhstani Minister of Transport and
Communications Kazhmurat Nagmanov said on Thursday during the
international conference, “Tran Eurasia -2004” held in the
Kazakhstani capital Astana. “Over
the last years, major investment projects have been implemented in
Kazakhstan such as construction of the first (since independence)
railway section Aksu-Degelen in East Kazakhstan - 184 km length,
rehabilitation of 130 km lines at the Zhanasemei – Degelen section,
and the “Dostyk” railway station development, the Minister reminded. He
stressed that for Kazakhstan, the main point of international transit is
the border crossing Dostyk –Alashankou. According to K. Nagmanov, last
year the transportation volume through the above mentioned border
crossing comprised 7.5 million tons while this year - 9 million tons.
“The plan is to spend some USD 52 Million for the “Dostyk” station
development during the next two years” – K. Nagmanov stated. (Kazakhstan
Today)
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Prime
Minister: Implementation Plan On New Housing Construction Program Is ”
Extremely Poor” |
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During
a governmental meeting held in Astana, Prime Minister Daniyal Akhmetov
called the implementation plan on the new housing construction program
extremely poor. The action plan for the realization of a state housing
construction program that was approved on May 31 at the National Council
was intended to create standards on the construction of housing costing
– USD 350 per square meter. The Premier did not sign the document and
stressed: ”you have prepared an extremely poor plan. You could not do
it during 1.5 months, now do it during three days. Devote your energies
and produce one acceptable document“. His
criticism pertained to all members of the government but mainly to the
Minister of Industry and Commerce Adilbek Zhaksybekov, who developed
action plan. The Prime Minister remarked that the above-mentioned
document does not contain any specifics. For example, its doesn’t
explain how to ensure full-scale construction using metal, concrete,
glass and other necessary materials, or who will be responsible for
mortgage lending rate reductions. Notably, the authors were responsible
for developing operating procedures for the Kazakhstani Mortgage
Company. It
is expected to launch full-scale construction by this summer. By 2007,
no less than 12 million square meters of housing is to be built in the
republic. The Minister assured that during three days he will manage to
prepare a new action plan. (Khabar)
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Kazakhstan
Increases Electric Power Production 5% In January –May |
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In
January-May 2004, Kazakhstan produced 29,321.5 million kW/h, which is 5%
more compared to the same period of 2003, the National Statistics Agency
disclosed on Monday. During January-April, Kazakhstan imported 1,008.4 million kW /h (118% by January-April 2003) in the amount of USD 18.7 Million. (Interfax-Kazakhstan) |
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Equities |
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The KASE-Shares index
decreased by 0.97% to 191.50 by the end of period on June 22 2004.
KASE-Shares
index and weekly volume of trades
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Note:
KASE-Shares index is based on ask prices for equities in A Listing In
the period between June 16 and June 22 2004, the volume of equity trades
at the KASE decreased to USD 4,372,693 from USD 11,486,694 in the
previous period. The shares traded during the period were common shares
of Almaty Kus (ALKS), Bank CenterCredit (CCBN), Bank
Caspian (CSBN), Charaltyn (HRLT), Kazakhmys (KZMS), Neftebank
(NFBN), Temirbank (TEBN), ValutTransit Bank (VTBN), ValutTransit
Zoloto (VTZL) and Zerde (ZERD) and preferred shares of Almaty
Kus (ALKSp), Alyuminiy Kazakhstana (ALKZp), KazChrome
(KZCRp), ValutTransit Bank (VTBNp). (Irbis)
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Company News |
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Oil & Gas |
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The
city of Aktau conducted public hearings on the Environmental Impact
Assessment of a project of geological exploration within the framework
of new offshore «LUKOIL Overseas » projects, Tub-Karagan and Atash,
the company press service disclosed. Representatives
of the Mangystau oblast administration, specialists from
“KazMunayTeniz” and the main contracting organization on
environmental research “Mekensak” delivered speeches on the subject.
The hearings resulted in a resolution and signing of the minutes. A
hearing is the procedure that includes state environmental expertise and
corresponds to the requirements of national and international
environmental legislation. The
principal purpose of the hearings is to provide the public with access
to environmental information and to involve the local population into
the process of decision making on issues pertaining to environmental
protection. (RusEnergy) *** The
Karachaganak Petroleum Operating BV Company shipped the first run of oil
from the offshore terminal of the Caspian Pipeline Consortium below
Novorossisk. By
the third quarter, the company plans to transport almost 550,000 tons of
oil monthly via the CPC system and later to achieve 6 – 7 million tons
per year. With the launch of a pipeline pumping Karachaganak oil, KPO
will become the second largest supplier for the CPC in Kazakhstan after
«TengizChevroil». (RusEnergy) *** The
National Kazakhstani Oil and Gas Company ”KazMunayGas“ and
”Kaznafta“ company plan to build two oil reloading terminals in Iran
with a volume totaling 150,000 tons, the Kazakhstani Premier’s press
service disclosed on Thursday. "These terminals will enable us to
export annually 1.5 million metric tons of Kazakhstani oil to Persian
gulf countries ", the press release reads. Other details of the
project, as well as the project value were not included in the press
release. Currently
Kazakhstan, according to a "swap" scheme supplies oil with
tankers to Iranian ports in the Caspian at around 2.0 million tons of
oil per year, obtaining approximately the same volume of Iranian oil in
return through Persian Gulf ports. In
2004 Kazakhstan is slated to produce around 54.1 million tons of oil and
gas condensate, mainly exported through Russia via the Atyrau-Samara and
CPC oil pipelines. KazMunayGas has recently agreed with the Chinese CNPC
to jointly construct an oil pipeline to China. (RusEnergy) *** At
the 3rd
Block of the Uzen deposit where currently a rehabilitation
project is being implemented, in 2004 it is slated to produce some
640,000 tons of oil. The results of 2003 were some 606,870 tons of oil
produced at the 3rd
Block. This information was provided by the “OzenMunayGas”
the industrial branch of “Exploration Production the “KazMunayGas”
company. This
year, the Company plans to attain a daily average debit of oil up to
5.0, tons, whereas in 2003 it produced 4.9 tons of oil. According to
company information, in 2004 almost 25,600,000 cubic meters of gas is
expected to be produced at the 3rd
Block. In 2003, the company produced 24,263,000 cubic meters of
the associated gas. According
to the industrial branch, if in 2003 the existing funds of the
production wells totaled 340, in 2004 at the 3rd Block, the number
of production wells will be increased by 11 and will comprise 351 wells.
There will be a total of 6 idle wells during 2004. In 2003, there were
total 12 idle wells. According “OzenMunayGas” and VB, a project on
the rehabilitation of the 3rd Block of the Uzen deposit has been
prolonged until June 30, 2005. (Kazakhstan
Today) *** The
Kyrgyz section of the “Bukhara-Almaty” gas pipeline will be assigned
to the JV “KyrKazGas”, Kyrgyz State Committee on State Property and
Investments Attraction reported. Currently,
the State Committee, jointly with JSC “KyrgyzGas” is completing the
assignment of the assets of gas and transport system “Bukhara
gas-bearing district-Tashkent – Bishkek-Almaty”, in Kyrgyz territory
to the beneficial ownership of the Kyrgyz-Kazakh JV “KyrKazGas” As
previously reported, an understanding on the creation of a Kyrgyz-Kazakh
JV on the joint exploitation of the main gas pipeline
“Bukhara–Bishkek–Almaty” was reached in December 2003 in Astana
by the intergovernmental Committee. The JV “KyrKazGas” foundation is
included into the plan on Kyrgyz and Kazakh economic integration and is
linked with the unsanctioned extraction of gas owned by Kazakhstan from
the pipeline. Kyrgyz
debt for the unsanctioned gas extraction for April 2004 reached USD 7
Million and it appears impossible to settle the matter at this point. In
order to avoid negative developments surrounding the situation
precipitated at the Kyrgyz section of gas pipeline, Kazakhstan has
developed a project for construction of a 124 km long bypass gas
pipeline, which passes over Kyrgyz territories. (Kazakhstan
Today) *** The
Russian-based plant LLC “Katkoneft” has recently performed hydraulic
fracturing (HF) at 115 wells belonging to the production branch
“UzenMunayGas,” the “Katkoneft” deputy general director of
social development, procurement and transport department Renat Abuljev
said. Abuljev
added that according to the contract, in 2004 PB “OMG” plans to
perform hydraulic fracturing at 200 wells at a cost of USD 100,000 per
hydraulic fracturing. If “Katkoneft” wins the tender in 2005, it
plans to perform HFs at from 300 to 400 wells. Abuljev
noted that there are enough wells to provide work for up to five years.
On average, oil production has increased by eight times. Abuljev also
said that pursuant to the contract, the oil rate should increase by five
times. In
2003, “Katkoneft” performed hydraulic fracturing at 79 wells of
which 78 obtained an effectiveness of 99%. Total oil production from
these wells by June 1, 2004 amounted to 242, 176 tons, while the average
daily oil growth rate from one well is 14.6 tons.
(Kazakhstan Today) *** A
branch of the “UzenMunayGas” JSC, “Production Branch (PB)
Geological Research and Production “KazMunayGas,” plans to start
geological exploration at the prospective Tepke site this year, the
Innovation Technologies Department director Kaldybai Markabaev
announced. According
to Markabaev, the prospective oil reserves at the site comprise nearly
8-10 million tons. “KazMunayGas” holds the license for the site’s
development, and because the “UzenMunayGas” production branch is the
affiliate plant, the company has created a geological research program
for the development of the deposit. In
the next two months, the company expects to approve a working program
budget, according to which one exploratory well will be drilled in 2004.
An estimated KZT 500 Million is expected to be invested in well
drilling. Based on a 3D seismic survey in 2004, PB plans to launch a full-scale prospect of the earth layers of the trias geological period at the Uzen and Karamandybas deposits. This year they plan to drill four exploratory wells. (Kazakhstan Today)
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Banking and Finance |
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The
Majilis deputy Serikbai Alibaev sent a deputative claim addressed to the
Agency for the Regulation and Supervision of Financial Markets and
Financial Organizations, where he demanded that the Chairman Bolat
Zhamishev explain a situation that occurred with OJSC “Nauryz Bank
Kazakhstan”. Notably,
the deputy asked if it was true that one of the largest stockholders of
OJSC “Nauryz Bank Kazakhstan” is the “Nauryz Holding Kazakhstan”
company and if any sum amounting to USD 10 Million was received through
this holding as an installment into the “Nauryz
Bank” charter capital during 2002. The Deputy also requested him to
find out how often inspections were conducted during the last 6 months
on the OJSC “Nauryz Bank Kazakhstan”, and who conducted such
inspections. He also asked whether it was true that the public
prosecutor office had performed three inspections out of five. Moreover,
S. Alibaev asked for him to specify if a situation existed where the
National Bank intended to withdraw the license from “Nauryz Bank”.
The Deputy also expressed interest whether indeed tax inspections
performed at “Nauryz Bank” revealed tax dodging amounting to KZT 935
Million and how in this case is it possible to protect the interests of
private depositors. (Kazakhstan
Today) *** On
June 17, a delegation from the Islamic Development Bank (IDB) chaired by
president Akhmad Mohamed Ali visited the JSC ”Kazakhstani Development
Bank” (KDB) where it carried out negotiations with KDB president
Kambar Shalgimbaev.
During the meeting the parties specified principal trends of
cooperation in 2004. It was decided to complete preparation for the
joint financing of two projects in the power industry and metallurgy
sectors by the end of 2004. Moreover,
the parties had covered 5 more investment projects stipulated to be
implemented in Kazakhstan, including in the field of industrial
production development, agriculture processing and building materials
production, in the amount of over USD 350 Million. Kazakhstani
members familiarized their colleagues with the short-range plans of the
KDB outlet to neighboring countries. The parties decided to found
working groups for specifying projects of joint financing in the Central
Asian region. The parties also agreed to hold annual joint meeting of
working groups of the two banks in Astana and Dzhedda on a rotational
basis. (KazInform) *** Several
dozens of depositors of the “Butya-Capital” investment fund blocked
the crossroads of Gani Ilyaev Street and Baitursynov Street, at the
Municipal Department of Internal Affairs (GUVD) in South Kazakhstan
Oblast said. The
depositors claimed that they could not register their deposit books with
investment coupons. The process of registration and execution of
documents is carried out very slowly. Some of the depositors arrived
from remote districts and spent money for the trip. Many of them have
been staying here for about a week and up to now have not been able to
submit their documents. The
picket line lasted around 10-20 minutes. People faded away when the
policemen explained them that their actions were illegal. (Kazakhstan
Today) *** Three
Kazakhstani Insurance Companies– “Premier insurance,” “KBS
Garant,” and “Bankturanalem insurance” are concluding natural
disaster risk reinsurance contracts. Kazakhstan
has now joined this international tendency, led by insurance companies
in the United States, to insure for hurricanes and tornadoes and in
Europe for floods. The last three years have shown that earthquakes and
mudslides are most likely to occur. Risk
Management insurance services have also increased. Premier Insurance
Company’s Risk Management campaign offers a financial services package
that minimizes business activity risks. Motor transport, employer
liability and company property insurance are also offered. The risks
management system covers the potential risks of any company. The
insurance companies have sought to publicize these new insurance
policies by announcing a competition among the journalists to write
about them. The prize fund has been established for this purpose,
totaling over KZT 1.5 Million. (KazInform) |
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Metals and Mining |
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JSC
"KazZinc " won the tender for the right to explore and extract
the Dollinoe and Obruchevskoe deposits located in Ridder city in the
East Kazakhstan Oblast (EKO), the company reported on its web-site.
According to a press release, "very soon Ridder Mining and
Processing Complex (RDPC) will begin exploration of these facilities
that will last for 6 years ". According
to company information, once the deposits’ reserves are approved and
the technical project adjusted, approximately as of 2011 the launching
of ore production is planned at these deposits. The produced ore will be
processed at Ridder Dressing Works. "The
Dolinnoe and Obruchov deposits are located in the immediate vicinity of
each other
and it is planned to develop both deposits using one mine. Such an
approach is suitable and will enable us to save considerable capital
costs ", - the press release reads. Pursuant
to company plans, maximum ore production volume at both deposits will
total 600.000 tons per year, which will enable them to produce 25,6
thousand tons of zinc and 1600 kg of gold in concentrates annually. (Interfax-Kazakhstan) *** The
Aksu Ferroalloy Plant (AFP) prepares to implement international
standards on Industrial Safety and Labor Protection OKSAS 18001. The
plant annually invests about KZT 2 Billion into measures for the
improvement of working conditions. The AFP has already obtained
international certificates on product quality and environmental
management. Technical retooling of the plant, the implementation of
modern energy saving technologies and a program for the reduction of
harmful emissions has been performed according to schedule. Representatives
of a hundred industrial plants in Aksu have been acknowledged with
metallurgists’ experience - the labor protection problem remains
urgent for many plants.
According to Oblast Labor Senior Inspector Kusain Isenov, during
five months as a result of violations against labor protection
legislation, 100 accidents had been registered at regions plants, some
20 people became invalids and six persons died. (KazInform) *** The
net profit of the copper producing Kazakhmys Corporation totaled KZT
14.479 Billion during the 1st quarter of 2004 against KZT 6.779 Billion
for the corresponding period of last year, the financial report of the
company, submitted to the Kazakhstani stock exchange (KASE), said. (the
current exchange rate is KZT 136.21/USD1). The
volume of sales in January-March of 2004 amounted to KZT 36.865 Billion
compared with KZT 28.229 Billion in January-March of 2003, the cost of
sales constituted KZT 13.263 and KZT 13.038 respectively. In the
meantime, Kazakhmys in January-March of 2004 produced 103,428 tons of
refined copper compared to 99,273 tons for the same period of last year. Kazakhmys’s ownership capital at the end of March of 2004 totaled KZT 163.288 Billion compared with KZT 131.439 Billion as of the beginning of April of last year. The Kazakhmys Corporation specializes in the production of refined and raw copper and unites the following facilities: Jezkazgan Copper-Smelting Plant (formerly Jezkazgantsvetmet JSC), the Balkhash Mining Complex, the Jezkent Mining and Enrichment Plant, the East-Kazakhstani Copper-Chemical Plant among others. (Interfax-Kazakhstan) |
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Energy and Power |
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Kyrgyzstan
has resumed electric power supplies to Russia, the OJSC “Electric
Power Stations” stated deputy general director Aidar Kaliev. Notably,
he emphasized that Kazakhstan has begun to implement a five-year
contract that was signed in 2003 between the Kyrgyz OJSC “Electric
Power Stations” and the Russian CJSC “Inter RAO EUS”. This
year, pursuant to the contract, the volume of supplies will total
approximately 1.5 billion-kW/h. Last year, electric power exports to
Russia totaled 800 million kW /h. Kyrgyzstan
also concluded long-term contracts with the large Kazakhstani enterprise
- “Kazfosfat” that would be provided with electric power in the
volume of 900 million kW /h. Last
year, Kyrgyzstan exported over 1.7 billion kW /h, this year energy men
intend to reach 2.2 billion kW/h. The main importers of Kyrgyz electric
power are Russia, Kazakhstan and Tajikistan. (Kazakhstan
Today) *** The
fourth block of the gas turbine power plant of 30 Megawatt capacity is
to be launched at the Karachaganak deposit during the first quarter of
2005. The head of the oblast department of fuel and energy, Akimat Gumar
Dyusembaev reported. The
oblast Akim is currently conducting negotiations with the management of
the Karachaganak Petroleum Operating BV so that the energy produced at
the fourth block would be completely allocated for covering demand for
electrical energy in the oblast in. It is supposed that this will
provide the oblast with the ability to exceed demand by 30 Megawatts. Currently,
the WKO utilizes 28 Megawatts of electrical energy produced at
Karachaganak gas-turbine power plant without payment. The
Karachaganak gas turbine power plant consists of four blocks, with three
blocks currently commissioned and functioning at 30 MWt capacity each.
The total capacity of the power plant will total 120 Megawatts.
According to Dyusembaev, the equipment for the construction of the
fourth block has already been supplied, and the last, fourth block is to
be assembled and launched during the beginning of the first quarter of
next year (Kazakhstan
Today)
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Transport and Telecommunications |
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The
net profit of the telecommunication firm KazTransCom (part of the
Kazakhstani national oil and gas company "KazMunayGas") in the
first quarter of 2004 totaled KZT 6,221 Million. The current exchange
rate is KZT 136.34/USD1 compared to KZT 15,091 Million for the same
period in 2003, company’s financial report presented at Kazakhstani
Stock Exchange indicates. The
Scope of services rendered by the company in January – March 2004
totaled KZT 579,442 Million compared to KZT 546,305 Million for January
- March 2003, whereas the prime cost of rendered services totaled KZT
421,482 Million and KZT 369,422 Million accordingly. KazTransCom
equity capital for late March 2004 totaled KZT 1,655 Billion as compared
to KZT 1,637 Billion for early April 2003, charter capital remained at
the same level – KZT 42.1 Million. The OJSC "KazTransCom" is an integrated company founded as a result of integration in 2001 of the OJSC "KaspiyMunaiBailanys ", OJSC "Aktubneftesvyaz " and OJSC "Bailanys ", specializing in rendering industrial communications services for the main Kazakhstani oil and gas pipelines. KazTransCom consumers are mainly Kazakhstani and international oil companies producing and exporting oil from Kazakhstan. (Interfax-Kazakhstan) |
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Money Markets |
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KZT/USD market rate dynamics during the week |
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Currency Rates as of 29 June 2004 |
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Note: Some of the information quoted in this issue has been provided for us by Golden Eagle Partners. For more information on those articles, please contact: zhanar@maverick.kz |
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For
more information and other publications please contact Yelena Kovalenko
at +7 (3272) 596 708
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