EVERYBODY LOVES KAZAKHSTAN

Despite the EU’s “can’t we all just get along” line, Kazakhstan seems intent on what would essentially be a nationalization of their resources. It remains to be seen if (or how long until?) Russian or Chinese oil interests seduce the Kazakhs into a new partnership. See also WHY OIL COSTS MORE –CASE STUDY: KAZAKHSTAN

EU urges Kazakhstan to be open to energy partners
September 20, 2007 (Reuters via Yahoo News Malaysia)

WHO
EU Energy Commissioner Andris Piebalgs, Kazak Energy Minister Sauat Mynbayev

The region. (click to enlarge)

WHAT
Eni, the Italian oil giant, heads an international oil consortium with a long-standing exploration deal in the Caspian Sea’s Kashagan field. Kazakhstan, impatient with progress, is threatening to takeover field development and eject the consortium. Pielbags is the most recent in a stream of western diplomats visiting Kazkhstan to make nice.

WHEN
Kazakhstan once again stopped consortium operations in August 2007.

WHERE
Kazakhstan is in central Asia, with an incredibly strategic location. Russia to the north, pipelines running straight to Europe on the west, Iran to the southwest, India and Pakistan to the southeast and China to the east. Their oil is like fresh raw meat in a den of hungry tigers.

The oil field. (click to enlarge)

WHY
- Eni heads an international consortium that also includes Royal Dutch Shell Plc, Exxon Mobil Corp, Total, ConocoPhillips , Japan's Inpex Holdings Inc and KazMunai Gas.
- Kazakstan has provoked the production delays it is demanding billions of dollars in remuneration from the consortium for with complaints of ecological and economic hardships. This is not the first time Kazakhstan has done this to the consortium.
- Pielbags dangled membership for Kazakhstan in the World Trade Organization as an enticement to settle with the oil consortium.

QUOTES
Pielbags: "Successful energy partnerships are based on the principles of mutual respect, transparency, predictability and non-discrimination..."