Oil and gas sector first of all should benefit all Kazakhstanis – PM Bektenov
Prime Minister Olzhas Bektenov of Kazakhstan chaired a meeting on oil and gas sector promotion, Kazinform News Agency has learnt from the press service of the Kazakh government.
The meeting focused on the pressing issues and prospects of oil production and processing as well as plans to implement new projects in geological exploration.
As Premier Bektenov pointed out that the Head of State of Kazakhstan set the tasks before the government to promote and increase the investment attractiveness of the oil and gas sector. Last year. The country produced 90 million tons of oil, with the proven reserves estimated at 2.9 billion tons. The sector is responsible for the bulk of tax revenues and jobs.
The Kazakh Prime Minister highlighted the importance of launching major projects, including the petrochemical plant in Atyrau region with a capacity of 500 thousand tons of polypropylene per year, start of the construction of three gas processing plants. Prospects for building plants for production of butadiene and polyethylene were discussed.
The country is carrying out work to better its tax and investment legislations, amend the Entrepreneurial Code and Code on Subsoil and Subsoil Use, reducing the burden on enterprises. The refined modelling contract in complex projects, providing for a package of regulatory and fiscal preferences for subsoil users has been introduced.
As part of further reforms aimed at liberalizing the market of oil and petroleum products, the government is developing a set of legislative amendments to the Tax and Budget Codes, Code on Subsoil and Subsoil Use, set to give an additional impetus to subsoil users and oil products manufacturers.
In turn, reciprocal measures are expected from businesses such as considerable increases in the share of local content and support of domestic commodity manufacturers, with the key role assigned to three major consortiums – Tengizchevroil, Karachaganak Petroleum Operating B.V. and North Caspian Operating Company N.V, which account for 70% of all the procurements in the industry.
The oil and gas sector first of all should benefit all Kazakhstanis. We’re working to ensure that a greater portion of revenues from the oil and gas activities to stay in Kazakhstan, thus fostering the development of domestic businesses, creation of jobs and increasing the standard of living of our citizens. It’s also essential to pay due attention to local personnel. Many statements say that over 90% of the works are Kazakhstanis, but it’s not true when it comes to the management level. Today, there is a sufficient number of managers with work experiences in top oil and gas companies in the country. They should be offered promising positions in projects, said Bektenov.
The government attaches great attention to promote geological exploration works with a creation of conditions to attract investments. In this context, companies are invited to actively conduct research works to explore deep layers. Prime Minister Bektenov also drew attention to the issues of ecology, stressing the importance of striking a balance between economic development and environmental sustainability. To this end, it’s necessary to actively invest in innovative developments and new technological solutions.
During the meeting, reports on the situation in the oil and gas sector were made by KazMunayGas Chairman Askhat Khassenov, Managing Director for Chevron's Eurasia Business Unit Derek Magness, KAZENERGY Association Chairman Magzum Mirzagaliyev, Director General of CNPC-AktobeMunaiGas JSC Li Shufeng and others.
