Direct Sales Approach to Selling Crude Oil in Kazakhstan Essay

Direct Sales Approach to Selling Crude Oil in Kazakhstan - Essay Example From this paper it is clear that  the main refineries in Kazakhstan are Pavlodar, Tyrau and Shymkent. Pavlodar and Shymkent process West Siberian Crude oil. These refineries are located around the oil fields to reduce transport costs. However, not all the oil from the fields is refined in the country. This is because the local refineries do not have sufficient capacity to process all the oil. Kazakhstan transports some of this oil to Russia through pipelines for processing.This essay discusses that the main buyer of Kazakhstan oil is Italy. That is according to a report by Kazakhstan’s Customs Control Committee. Apart from Italy, other consumers of Kazakh oil include China, the Netherlands, France and Austria. China has started investing in Kazakh oil with intentions of increasing its consumption of Kazakh oil. Though Russia refines Kazakh oil, it is not a major consumer of the oil. There are many challenges that companies selling crude oil face. That is due to the rules and regulations set by the authorities to govern the industry. Marketing of crude oil by private companies outside the country is limited. That is because the government allows only one company to do so. The company allowed to trade crude oil outside the country is KazMunayGas Trading AG. This is a subsidiary of the National Company KazMunayGas. The other companies remain only with the country’s refineries as their main customers for crude oil.