Energy News  
Sarkozy lands in Kazakhstan looking to land big deals

by Staff Writers
Astana (AFP) Oct 6, 2009
French President Nicolas Sarkozy arrived in Kazakhstan Tuesday for a swing through the energy-rich state expected to yield billions of euros in space, energy and defence contracts for French firms.

The visit, the first by a French president to Astana, is being touted as the culmination of a two-year diplomatic push aimed at securing French companies a larger role in Central Asia's largest economy.

In the largest deal the Spie Capag consortium, owned by construction giant Vinci, is expected to net a 1.2-billion-euro (1.75-billion-dollar) contract to build a pipeline for Kazakhstan's massive Kashagan oil field.

The pipeline will be part of a transport system to bring Kazakh oil to Europe, which analysts say would most likely take the form of tanker shipments across the Caspian Sea to Azerbaijan, without transiting Russia.

Oil giant Total and GDF Suez are also expected to formalize a venture worth one billion euros (1.5 billion dollars) to develop the Khvalinskoye gas field in the Caspian Sea.

Kazakhstan, ruled since its independence by strongman President Nursultan Nazarbayev, has long been courted by the West for its natural resource reserves and strategic position vis-a-vis neighbours China and Russia.

Although Sarkozy is expected to praise the ex-Soviet state as an island of stability in a volatile region, the trip comes at an awkward time as international criticism mounts over Kazakhstan's spotty human rights record.

Kazakhstan is set in January to become the first former Soviet state to chair the Organization for Security and Cooperation in Europe, and Human Rights Watch called on Sarkozy to press them to implement promised reforms.

Most notably, the New York-based watchdog asked him to raise the case of activist Yevgeniy Zhovtis, sentenced to four years in prison in September for a traffic accident that resulted in a man's death.

The United States and OSCE have both criticized the conduct of the trial, raising questions about its fairness and the impartiality of the judge.

earlier related report
Kazakhs allow French arms transit
France and energy-rich Kazakhstan have signed an agreement allowing military hardware bound for French troops in Afghanistan to pass through Kazakh territory.

The agreement, overseen by French President Nicolas Sarkozy during a brief trip to Astana, Kazakhstan's capital, was part of a raft of energy and business deals worth $6 billion and signed between France and Kazakhstan Tuesday.

Strategically situated between China and Russia -- long the dominant regional force -- Kazakhstan is Central Asia's largest economy and riddled with oil and gas fields.

It has been courted by several countries in the West for access to its oil and gas fields.

Kazakh President Nursultan Nazarbayev said the agreement to transit French military supplies through his country would also carry military personnel to aid French forces serving with NATO forces in Afghanistan.

"We need Kazakhstan to resolve the crisis in Afghanistan and in Iran, and to establish new relations with our friends in Russia," Sarkozy was quoted as saying by local media after meeting with his Kazakh counterpart.

Officials from both sides had been negotiating the military transit deal for nearly two years. The agreement covers both air and rail transit of French arms and military personnel via Kazakhstan. Train traffic can then go through neighboring Kyrgyzstan and Tajikistan where France already holds a military foothold.

A similar deal was clinched recently by the United States. Under that deal supplies would be pushed through Russia, Kazakhstan and Uzbekistan to fighting forces in Afghanistan.

The United States had also agreed with Kyrgyzstan to continue using its Manas air base as part of ongoing operations to crack down on Taliban rebels.

Military support agreements like these afford NATO with an important alternative to Pakistan, where supply convoys bound for Afghanistan by road have been repeatedly targeted by rebel insurgents.

Of the deals, however, that France and Kazakhstan signed, the biggest came between Total and GDF Suez and the Kazakh energy firm Kazmunaigaz to develop the Khvalynskoye Caspian Sea gas field.

The French firms are taking a 25 percent stake while Kazmunaigaz retains 25 percent. The other 50 percent is owned by Russian energy giant Lukoil.

"Total chief executive Christophe de Margerie said on the sidelines of the signing ceremony that the field could produce 8-9 billion cubic meters of gas annually once it becomes operational from 2016," the Taiwan News reported.

The business deals come despite criticisms from rights groups and international activists over Kazakhstan's lagging human rights record.

Kazakhstan is set to become the first former Soviet Republic to chair the Organization for Security and Cooperation in Europe, an international organization focusing on trans-Atlantic security.

Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Powering The World in the 21st Century at Energy-Daily.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


Truce lifts hopes Nigeria's oil war ending
Lagos, Nigeria (UPI) Oct 2, 2009
Hopes were raised Friday that the end of a five-year conflict that has ravaged one of Africa's largest oil industries may be in sight after a senior rebel chieftain made a last-minute acceptance of a government amnesty. At least two other key leaders of the Movement for the Emancipation of the Niger Delta, a coalition of tribal factions demanding a greater share of Nigeria's oil wealth ... read more







The content herein, unless otherwise known to be public domain, are Copyright 1995-2009 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement