US-Kazakh venture to build oil refinery in western Kazakhstan

Kazakhstan's Kuat oil holding company and America's Hemko plan to start construction of an oil refinery in Aktau (Mangistau Region, western Kazakhstan) in the autumn, a vice president of Kuat, Shyngys Kulzhanov, told.
The Kazakh-American joint venture was set up in January 1999 in order to build the oil refinery in Aktau. Currently, specialists at Kuat and Hemko have completed drawing up the construction project, which was started last summer.
Kulzhanov said the cost of the project was estimated at around $ 15 - $ 20 mm dollars, which the American party will give in the form of direct investments. He underlined that there had been no mention of government guarantees.
The Kuat vice president added that the stated sum was not yet final.
The amount of financing will be determined after an agreement has been signed with the American company Ventech on the supply of the necessary equipment. Hemko is currently conducting negotiations with the firm on this.
He said the period for recouping the investments would depend on oil prices in world markets. Kulzhanov said the local companies would be building contractors for the Aktau oil refinery. Kuat has its eye on a number of construction firms.
The first stage of the oil refinery is planned to go into operation 16 months after construction starts. The plant will have a capacity of 6,000 bpd.