KAZAKHASTAN - Profile - Lyazzat Kiinov.

Made KazMunaiGaz (KMG) President in February 2002 as KazakhOil and TNG were merged, Kiinov has since become a powerful decision maker in the petroleum sector. But his powers depend more on the co-operation of KMG's First Vice President Kulibayev than on Kiinov's own position. Veterans in this sector say Kiinov treads carefully, and would have to keep doing so, lest Kulibayev would take his place.

Kiinov, aged 52, was formerly governor of the oil-rich Mangistau region in western Kazakhstan. He also headed MangistauMunaiGaz, the oil producer in that region. Asked during an April 2002 conference in Almaty why KMG had been created, Kiinov said President Nazarbayev had deemed it necessary in view of the forthcoming development of the 120 offshore blocks in the northern Caspian Sea - which are to be auctioned later in the year and in which KMG should have a stake of 51%. Kiinov also said that, while KMG will organise the auction as well as oversee all the PSAs in Kazakhstan on behalf of the state, the company will also complete with foreign firms in developing its own blocks onshore and offshore. He added that Kazakhstan no longer wanted to be solely dependent on foreign oil companies, saying: "We have learned a lot from our Western colleagues and now we can participate as equals".

On June 11, 2003, Kiinov announced in Astana that Kazakhstan would soon hold a tender for the Darkhan and Zhambai offshore oil fields in Kazakhstan's Caspian Sea sector. Kazakhstan is currently negotiating with the Indian company ONGC Videsh concerning its participation in a tender for the development of the Darkhan field. KMG will soon conduct limited exploration work in the Zhambai field.

Klinov indicated that Kazakhstan was ready to begin this project with a "huge sum" accumulated from pension funds for the development of the oil and gas projects, with Kazakh news agency Bluebull saying additional development costs would be covered by profits realised from the implementation of the project.