RP, Kazakhstan in talks over oil development

The Philippines and Kazakhstan are in talks for the development of the oil industries in both countries, Energy Secretary Vincent S. Perez said yesterday.

Kazakhstan president Nursultan Nazarbayev is in the country for a three-day state visit.

Perez said the visit will open up a new door for the country to source its energy requirements, further boosting the Philippines’ energy security program.

"Given its large oil and gas reserves, Kazakhstan plays a very crucial role in the energy markets. Establishing a strong relationship with Kazakhstan enhances our energy security initiative and at the same time offers us alternative sources of energy as we slowly diversify and lessen our dependence on the Middle East," Perez said.

Perez said one of the highlights of the expanded bilateral talks between President Arroyo and President Nazarbayev focused on possible cooperation in the energy sector, wherein the Philippines can import oil from Kazakhstan.

Kazakhstan has one of the largest hydrocarbon reserves in the world. It produces about one million barrels of oil daily, with plans to increase its production to 3.5 million barrels per day by 2015. Oil exports from Kazakhstan has been consistently growing, becoming a more significant player in the world oil market. Its oil is being delivered to the world markets through the Black Sea and the Persian Gulf.

Perez said there is also the possibility of Kazakhstan tapping the cooperation of Philippine oil companies for the development of its own oil and gas markets.

Perez said he had informed the Kazakhstan President of the technical services being offered by state-owned PNOC-Energy Development Corp. (EDC), which the latter can avail for their new oil finds in the Caspian Sea. Kazakhstan has lined up expansion projects in three oil fields –Tengiz, Karachaganak and Kashagan.