Kashagan Profitable For Kazakhstan No Matter How Low Oil Prices Are

Kashagan Profitable For Kazakhstan No Matter How Low Oil Prices Are

The International Exhibition and Conference KIOGE Kazakhstan “Oil and Gas” has kicked off in Almaty today.

At the event, Vice Minister of Energy Magzum Mirzagaliyev said that development of the Kashagan oilfield will be profitable for the Government of Kazakhstan no matter how low oil prices are.

“Pre-commissioning works are currently underway at Kashagan. In late October we plan to produce at least 75,000 barrels per day and to increase this figure in the future. This project is profitable for us no matter how low oil prices are, because we will get royalties and taxes,” Vice Minister Mirzagaliyev said Wednesday on the margins of the KIOGE event in Almaty.

General director of BRB Invest Galim Khussainov who was also in attendance stressed that Kazakhstan often neglects small and medium oilfields.

“Kazakhstan places a bet on the development of large oilfields such as Tengiz and Karachaganak and often neglects small and medium oilfields. However, they create more workplaces and hire local specialists and oilfield service companies. After the 2015 crisis, small and medium companies of Kazakhstani oil industry found themselves in the hot seat,” he noted.

Mr. Khussainov added that over the past three years oil production in Kazakhstan dropped to 75-77 million tons per year.

It should be noted that this is the 24th time Almaty hosts the KIOGE event.

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