The reconstruction project is tentatively scheduled for completion by 2015, as part of the governments agenda to develop the countrys oil refining sector.

President [Nursultan Nazarbayev] last year addressed the possibility of developing lubricants production in Kazakhstan, Daniyar Tiesov, KazMunayGas managing director stated during a governmental meeting last week. He added that the Shymkent refinery has technical and geographic advantages for this purpose.

The crude we extract in the Kyzylorda province has the best quality for production of [API] Group III base oils. The realization of the project could see an investment worth $500 million, and we consider that the project itself will have commercial and economic rewards, Tiesov said.

KazMunayGas did not respond to Lube Report inquiries on the planned capacity of the base oil and lubricants production at the Shymkent refinery.

Kazakhstan is the largest oil producer and crude exporter in Central Asia and holds around 3 percent of the worlds recoverable oil reserves, according to the CIAs 2010 World Factbook. The country opened its first blending plant last year. The plant, which is based in Shymkent and operated by the company Hill, has 70,000 metric tons per year capacity and cost more than $20 million. The blending plant imports base oils.

There are three fuel refineries in the country, all operated by KazMunayGas.