KAZAKHSTAN: FISH, SEALS DYING IN CASPIAN

UNCLAS SECTION 01 OF 02 ALMATY 002303

SIPDIS

TASHKENT FOR EPUTNAM

SIPDIS

E.O. 12958: N/A
TAGS: ECON SENV ENRG EPET KZ
SUBJECT: KAZAKHSTAN: FISH, SEALS DYING IN CASPIAN



1. Summary: In the past several months, thousands of dead
sturgeon and seals have washed up on the Kazakhstani shore
of the Caspian Sea. Initial indications are that the deaths
were likely linked to energy development activities. The
associated ecological and economic damage has prompted a
flurry of Kazakhstani interest in protecting Caspian marine
wildlife stocks by, among other things, securing abandoned
oil wells in and around the sea. The investigation to
determine the exact cause of death of these animals is
ongoing. End summary.

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Dead Seals and Sturgeon Wash Up on Caspian Shore
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2. While flying over the Severnoye Buzachy peninsula on
April 29, regional government officials in western
Kazakhstan spotted a large number of dead sturgeon and seals
near the Kalamkas oil field. All told, about 800 sturgeon
and 72 seal carcasses had washed ashore. While the dead
animals were found in the vicinity of the Kalamkas oil
field, none were seen on the territory of the oil field
itself.


3. The carcasses were destroyed on the spot, preventing a
full analysis of how the animals had died. Experts
initially suggested that the cause of death might be
disease, natural causes (the fish could have frozen under
the ice),poachers' nets, exploratory drilling, or hydrogen
sulphide. However, increasing numbers of sturgeon and seals
began to wash up on the shore. By mid-May, the number of
dead sturgeon and seals had reached 4000 and 600,
respectively.

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Abandoned Oil Wells a Threat
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4. Also in mid-May, ecologists discovered an oil spill 10 km
long and 2 km wide around an abandoned oil well at the
Pribrezhnoye oil field. They noted that this spill could
have poisoned the surrounding water and resulted in the
deaths of those animals that had washed up on shore.
AtyrayMunaiGasGeologia was sent to clean up the accident,
and on May 23 reported that it had sealed the well with a
temporary plug.


5. While this particular incident has been temporarily
resolved, the risk to Caspian marine wildlife remains high.
According to the Chief of the Atyrau Territorial Board for
Environmental Protection, Marat Abdrahman, there are 1500
sealed oil wells in the Kazakhstani part of the Caspian Sea.
These wells, which include 140-150 underwater wells, were
sealed after prospectors determined that the sites lacked
sufficient economic potential. The method used to seal
them, however, was not designed for long-term underwater
use, and they now pose an ecological threat.

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GOK Response
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6. With economic damages associated with the loss of marine
wildlife reaching upwards of 200 million tenge ($1.7
million) the GOK enacted new measures to discover and
counteract the causes behind the ecological damage.
Biological samples were sent to a laboratory for analysis.
Additionally, a special commission headed by the regional
Akim (governor) was set up and a team of experts was sent to
the disaster site. Kazakhstan invited Russian scientists to
participate in the team. The government also decided to
initiate criminal proceedings under Article 289 of the
Criminal Code of the RK "Violation of Rules of Wild Life
Protection."


7. The GOK already has taken certain measures to prevent
such accidents. Since 2004, the GOK has allocated funds to
properly attend to abandoned wells. However, it is apparent
that these measures are not sufficient to address the
problem. Shalbay Kulmakhanov, the Minister for Emergency
Situations, has noted that there is lack of skilled
personnel in the republic to carry out the necessary work.
As a result, last year Kazakhstan managed to find and plug
only two abandoned oil wells. The Minister proposes to set
up an Emergency Response Team to eliminate accidents in the
Caspian Sea. His plan would require 5.4 billion tenge ($46
million).


8. Additional proposals have come from other Kazakhstani
officials. At an international conference on "Ecological

ALMATY 00002303 002 OF 002


and Economic Problems Regarding Caspian Shelf Development,"
Gulmira Ismaiylova, an official in Kazakhstan's Ministry of
Education and Science, called for the creation of a rapid
response system for oil spills in the Caspian Sea. She
proposed that the system be placed under the authority of
the Ministry of Emergency Situations.


9. The Minister of Environment, Nurlan Iskakov, has stated
that he believes it is necessary to toughen requirements for
users of natural resources. At the May 17 UNESCO regional
conference on renewable energy, he said that in the future,
users of natural resources would only get licenses if they
were able to increase their operational efficiency by
avoiding gas flaring. Currently, companies are only using
about 15% of the associated gas, with the rest being flared
or reinjected. The Minister also spoke in favor of
prohibiting the disposal of waste on the sea floor.


10. Oleg Egorov, a senior research assistant in the
Institute of Economy, a division of the Ministry of
Education and Science, opined that it is necessary to sign a
convention on the Caspian Sea. However, he believed that
differences among littoral states on how to share the sea
floor and surface area would make an agreement unlikely.

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Sturgeon Threatened
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11. At a time when the United Nations is working to save the
sturgeon population in the Caspian sea (having recently
extended the export ban on caviar from Central Asian
states),the sturgeon population is dwindling. Considering
the fact that Central Asian states export 95% of black
caviar to the world market, if such ecological damage in the
Caspian continues, the impact will be severe. The catch of
sturgeon in the Caspian is already at historic lows.
According to the RBK news agency, intensive oil development
and poaching has decreased the annual catch of sturgeon in
the Ural-Caspian basin by 95% in the past thirty years.

ORDWAY