26 April 2019

China may offer higher price to secure Kazakh oil, report says

China may offer a higher price for oil from Kazakhstan’s Kashagan project as it competes for the crude with other countries surrounding the Central Asian state, Bloomberg News reported Wednesday. “Our Chinese colleagues have announced that they will give a price” that is competitive with oil traveling to Russia, Kairgeldy Kabyldin, head of Kazakh pipeline operator AO KazTransOil, was quoted as saying. The US$48 billion Kashagan deposit started output last month after years of delays. The project partners, including Exxon Mobil Corp., Royal Dutch Shell Plc and Eni SpA have the option to export via several routes once production ramps up, with Russia, Azerbaijan and China vying to transport the crude, the report said. China National Petroleum Corp. bought an 8.33 percent stake in Kashagan from state-owned KazMunaiGaz National Co. last month. 

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