Uzbekistan may import oil from Kazakhstan at 'acceptable cost'

Uzbekistan has agreed to import oil from Kazakhstan at affordable prices, the media reports with the reference to ‘Uzbekneftegaz’. Recently, Uzbekistan’s delegation visited Kazakhstan and held talks with specialists of ‘KazMunaiGas’ (KMG).

‘Due to the geopolitical situation in Europe and the growing demand for Kazakh oil in the European market, oil prices of KEBCO (Kazakhstаn export blend crude oil) fluctuate. Therefore, under the bilateral agreement reached between the heads of the Ministries of Energy of Uzbekistan and Kazakhstan, the possibility of importing oil from Kazakhstan at acceptable prices for refineries of Uzbekistan is being studied,’ – ‘Uzbekneftegaz’ notes.

At the talks, the Kazakh partners proposed the terms of delivery of raw materials extracted from the deposits belonging to ‘KazMunaiGas’. Also, the Kazakh side expressed interest in studying the processing of its raw materials at oil refineries in Uzbekistan under tolling conditions. Uzbek specialists provided detailed explanations of the procedure for processing under these conditions.

Representatives of ‘KazMunaiGas’ reported that the raw materials of the extractive organizations are now being channeled to the local refinery and the plant located in Romania, while the volumes of the oil joint ventures are included in the contracts.

It was stressed that Kazakhstan is home to many private oil and gas enterprises that are considered attractive in terms of commodity pricing and supply logistics. These include ‘Oil Potential’ and ‘Kultuk’, the Azerbaijani oil company.

The agreement was reached between the Ministries of Energy of the two countries to continue work on the import of Kazakh oil to the refineries of Uzbekistan.