Kalistani Major History

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Kalistani Republic
KALNAPECO Production tops 3.5 million barrels a day
Trade Minister announces pause in new exploration
July 20, 3982
Sulari, Suldanor District


Dr. Emma Garcia testifies before the Select Committee on Energy Production

The Director of the Kalistani National Petroleum Company, Dr. Emma Garcia, announced in hearings before the National Assembly select committee on Energy production that KALNAPECO production had, for the first time, reached 3.5 million barrels a day, 90% which was considered light sweet crude.  During her testimony, Director Garcia advised a change in Kalistan's point of sale policy.

"At this level of production," Director Garcia stated, "Kalistan has storage capacity at Sulari for about 3 months.  The speed at which current demand is met, both domestically and in overseas markets is not enough to keep up with production.  It is the advice of the Board of Directors that Kalistan immediately liberalize point of sale policies to allow for a more efficient distribution in line with a strategic goal of achieving 6 month storage capacity."

Liberalization would mean that select preferred trading partners would be able to purchase and ship Kalistani oil themselves, rather than relying on Kalistani shipping to carry the oil.  This move would also shift costs onto purchasers, and would allow KALNAPECO to reduce price per gallon to reflect a lower burden on its fleet.

The Industry and Trade Minister, Frieda Carrangus, who oversees KALNAPECO operations, had no comment on POS liberalization, but did announce that at 3.5 million barrels a day, production targets had been met, and new exploration in the Suldanor formation would be suspended while existing wells remain in operation.  Mainland exploration, while significantly cheaper in terms of exploitation, but produce much more costly oil, was suspended several years ago in favor of the deep sea operations.  Minister Carrangus noted that exploration may begin again if production dips below 3 million barrels a day, but she said that Kalistan's energy production was going to continue in a sustainable way which would let KALNAPECO operate indefinitely.