ASTANA – Kazakhstan’s oil and gas industry should primarily benefit all Kazakh citizens by ensuring that as much revenue as possible stays within the country, contributing to national business growth, job creation, and the overall improvement of living standards, Prime Minister Olzhas Bektenov said at an Aug. 14 meeting focused on the oil and gas sector, reported the Prime Minister’s press service.
Olzhas Bektenov. Photo credit: primeminister.kz.
“It is necessary to pay due attention to local personnel. In many reports we see that over 90% of workers are Kazakhs but this cannot be said about the management level. Today, the country has enough managers with experience in the best global oil and gas companies. We need to offer them promising positions in projects,” Bektenov noted.
President Kassym-Jomart Tokayev has tasked the government with enhancing the oil and gas sector’s investment attractiveness. In 2023, Kazakhstan produced 90 million tons of oil, with confirmed reserves estimated at 2.9 billion tons. The industry generates a significant portion of tax revenues and jobs.
Bektenov stressed the importance of launching large projects in Kazakhstan, including a petrochemical plant in the Atyrau Region with a capacity of 500,000 tons of polypropylene per year and constructing three gas processing plants. He also discussed the potential development of butadiene and polyethylene plants.
Tax and investment legislation is being improved to support these initiatives. Amendments have been made to the Entrepreneurial Code and the Code on Subsoil and Subsoil Use to reduce the burden on enterprises. A new model contract for complex projects has been introduced, offering regulatory and fiscal benefits for subsoil users.
The government plans further reforms to liberalize the oil and oil products market. A package of legislative amendments to the Tax and Budget Codes and the Code on Subsoil and Subsoil Use is in development. This will provide additional incentives for subsoil users and oil product producers.
The government expects businesses to significantly increase the share of local content and support domestic manufacturers. Three major consortiums – Tengizchevroil, Karachaganak Petroleum Operating, and North Caspian Operating Company – are particularly vital, as they account for 70% of all purchases in the industry.
Additionally, the government focuses on supporting geological exploration, creating conditions to attract investment. Companies have been urged to intensify research on deep-lying horizons. Bektenov also stressed the importance of balancing economic development with environmental sustainability, calling for greater investment in innovative technologies and solutions to address environmental concerns.
