(EnergyAsia, June 29) — Malaysian oil and gas contractor Kazmirak Oil Sdn Bhd and Kazakhstan’s Nord-Oil have teamed up to build two 20,000 b/d oil refineries in Kazakhstan. The refineries, costing a total of US$300 million, will be located in Petropavlovsk and Kokshetau, according to the Malaysian Business Times (US$1 = RM3.80).
“This is the first joint-venture project between Malaysia and Kazakhstan, and it could pave the way for future oil-related business and other ventures between the two countries,” Kazmirak managing director Abdul Karim Abdul Kadir told the newspaper at the signing ceremony in Kuala Lumpur.
He said the company had received approval to build the refineries from the Kazakhstan government in 2001, but was only able to proceed recently after it was able to secure financing for the project.
Construction is due to start later this year and completed within 20 months.
Mr Abdul Karim said the project will be funded by Kazmirak’s associate company KRI Development Sdn Bhd, which will also allocate funding for the development of a new town near Kazakstan’s capital, Astana.