3.125
%
Neutral
50
mm boe
67
%
Recent updates from the US Department of State and the FCO suggest that the investment climate in Kazakhstan is improving. While this will need to filter down to the oil & gas segments, it is nonetheless a welcome development. Consequently, as part of this update, we upgrade our outlook to NEUTRAL.
June 3, 2024
Caspian
mm bbl
bcf
Central Asia, northwest of China; a small portion west of the Ural (Zhayyq) River in easternmost Europe.
Multiple (PSC/Concession)
Most contracts with foreign investors in Kazakhstan are currently governed by Concession (royalty/tax) terms. Vehicles for Concession operations include Kazakh joint stock companies (JSC), limited liability companies and general or limited partnerships. The latest model Concession terms took effect in January 2009. Typically the State will have a minimum of 50% interest in offshore contracts; the state interest varies for onshore projects, and ranges from zero to 100%.
Since its independence in 1991, Kazakhstan has made significant progress toward creating a market economy and has achieved considerable results in its efforts to attract foreign investment. While Kazakhstan’s hydrocarbon and mineral reserves remain the backbone of the economy, the government continues to make incremental progress toward its goal of diversifying the country’s economy by improving the investment climate. Kazakhstan’s efforts to remove bureaucratic barriers have been moderately successful. The government maintains an active dialogue with foreign investors, through the President’s Foreign Investors Council and the Prime Minister’s Council for Improvement of the Investment Climate.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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