Foreign Investors’ Council Focuses on Further Development and Increase of Investment Attractiveness of Oil and Gas Industry

NUR-SULTAN – Increasing the investment attractiveness of the oil and gas sector was discussed at the working meeting of the Foreign Investors’ Council (FIC), which was held in video format on Aug. 26. 

Photo credit: Akorda Press.

President Kassym-Jomart Tokayev said that the oil and gas sector has always played a major role in the country’s development. The industry remains the driving force of the economy, especially taking into account new technological breakthroughs. The task is to use the existing potential as efficiently and effectively as possible.

The implementation of projects to expand the Tengiz, Kashagan and Karachaganak fields are priority tasks for the council and the government. It is necessary to implement the third stage of work at Kashagan field to increase oil production to 1.1 million barrels per day.

The government was set the task of introducing a package of fiscal preferences to ensure the adoption of legislative norms by the end of this year. The norms will be related to the development of new investment mechanisms, in particular, an improved model contract. This will provide legal protection and stability of investments with the provision of investment preferences.

Tokayev said that a flexible and prompt response to the requests and problems of investors is of strategic importance. 

The government also works to develop an agreement on further geological exploration of subsoil. This document allows investors to guarantee the transition from geological exploration of subsoil to the exploration and production phases.

The creation of gas processing facilities at the oil and gas fields is an important task. “The start of the construction of a gas processing plant at Kashagan is a major event. The government and the Samruk Kazyna National Welfare Fund have developed a stimulating price formula for the purchase of gas from subsoil users for new gas production projects. I invite you to take part in the implementation of projects to increase the production of marketable gas,” said Tokayev.

Deep processing of hydrocarbons is also a priority. The use of gas for gas chemical projects will reduce the raw material orientation of the industry.

Tokayev also spoke about the proposals and recommendations of the meeting participants. The government will work to ensure the adoption of legislative norms by the end of this year and submit a full report on the work that was done. 

Kazakh Deputy Prime Minister Roman Sklyar, and the heads of oil and gas companies including Eni S.p.A, Royal Dutch Shell, INPEX Corporation, Chevron, Exxon Mobil, CNPC, Total E&P attended the meeting. 

The 33rd session of the FIC was held June 10. The FIC was established in 1998. It aims to stimulate greater cooperation and interaction between Kazakhstan and foreign investors by serving as a platform for dialogue and providing favorable investment conditions. This event was dedicated to economic diversification and exploring green solutions for the economy. 

Get The Astana Times stories sent directly to you! Sign up via the website or subscribe to our Twitter, Facebook, Instagram, Telegram, YouTube and Tiktok!