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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Herb Duncan who wrote (11121)	6/8/1998 5:53:00 PM
From: SofaSpud	Read Replies (5) \| Respond to of 15196

CORP. / Hurricane Kazakhstan Contracts CONCESSION CONTRACTS ON THE MANAGEMENT OF OIL AND GAS SECTOR ENTERPRISES TRANSFERRED TO ''KAZAKHOIL'' WILL BE RE-SIGNED ASTANA, June 8 /CNW/ - In his interview to ''INTERFAX-Kazakhstan'', Prime Minister Nurlan Balgimbayev confirmed that the decision made earlier on holding on the privatization process in the oil and gas sector was still effective. ''We are looking into how foreign investors carry out their obligations under the contracts,'' he said. Concession contracts on the management of oil and gas sector enterprises, assets of which were transferred to the national oil and gas company ''Kazakhoil'' by the resolution of the government, will be re-signed with the aforementioned company. Those are the contracts on Pavlodar refinery and other enterprises. Pavlodar refinery was transferred for 5 years concession to the American company ''CCLoil'' in March 1997. The State Property Privatization Department under the Ministry of Finance represented the Kazakhstan party in that contract. In May, 87% of Pavlodar refinery shares were transferred in the ownership of Kazakhoil by the resolution of the government. As per a top official in Kazakhoil, CCLoil would not be dismissed from management of the refinery, but the concession contract would be revised. It is supposed to study which concession contract conditions have been fulfilled by the American company, the volume of investments, and what the results of the financial activities. The source also indicated that CCLoil has ''many debts''. Sources say only two out of twelve sections of obligations under the contract have been fulfilled. The projected capacity of the refinery is 6 million tons of oil per year. Last year less than 2.5 million tons of oil were refined. As per the State Property Privatization Department under the Ministry of Finance, the contractual obligations of the investors are still being studied. As per the Monitoring Division of the State Property Privatization Department under the Ministry of Finance, the study of the contractual obligations of Hurricane Kumkol Munai, developing Kumkol oilfield in South Kazakhstan, has already been completed. As per the Monitoring Division, Hurricane Kumkol Munai fulfilled its contractual obligations. In 1997, Hurricane Kumkol Munai made direct investments on the amount of $59.9 million, which is $23.8 million more than planned. All back wages and payments to the non-budget funds have been paid. As per the Monitoring Division, the company produced more oil than planned. In 1997, the company produced 1,795,158 thousand tons versus 1,708 thousand tons planned. Fourteen new wells have been put into operation at Kumkol. Hurricane Kumkol Munai delivers all the oil produced at Kumkol to the Shymkent refinery. At present, the company invests in the transshipment terminal at ''Druzhba'' railroad station at the Kazakh-Chinese border in order to increase crude oil deliveries to China. Hurricane fulfilled all the obligations under the contract with the government of Kazakhstan. As it was indicated by the State Property Privatization Department under the Ministry of Finance, the study of the contractual obligations of other companies will continue until the end of this year. -30- For further information: Frederick A. Youck, Vice-President Administration & Corporate Secretary, Hurricane Hydrocarbons Ltd., (403) 221-8438