Kazakhstan seeks cooperation with foreign companies to develop oil and gas projects
By Aynur Jafarova
Kazakhstan doesn't possess all the required technologies for development of the oil and gas projects itself, thus the presence of foreign companies in these projects is necessary for the country, the expert of the Kazakh Institute of Political Solutions, Sergey Smirnov, believes.
"Kazakhstan may independently develop small and medium-sized projects onshore, but is not capable of developing offshore projects alone, as there are no relevant specialists, equipment or technology," Smirnov told Trend , noting that Kazakhstan has to invite foreign companies so that they bring their own technologies.
He went on saying that the tightening of laws regarding the subsoil use in Kazakhstan, as well as withdrawal of such companies as Statoil and ConocoPhilips from projects in Kazakhstan may scare off some new investors.
French Total became the first company that left Kazakhstan's oil and gas sector. In early 2012, it officially notified Kazakhstan's Ministry of Oil and Gas about the refusal to develop the Zhenis site. Later, the Italian concern refused from the Shagala site and then ConocoPhillips announced the intention to sell its share in the Kashagan project.
Statoil was the latest company which decided not to pursue negotiations on Kazakhstan's Abai project. It stopped the seven-year talks with the Kazakh side in February 2013.
Smirnov said new companies will observe and analyze the reasons behind the withdrawals of other companies; whether it is related with problems within the company or with the investment climate.
At the same time, according to the expert, the withdrawal of companies from projects in Kazakhstan is rather exceptional.
"Particularly, ConocoPhilips had major domestic problems. The Kashagan project (shares in which the company plans to sell) is under delay. It remains unknown when it really starts operating and bringing output. However, making investments (and rather large ones) is necessary at this moment," Smirnov said.
Smirnov believes investors with larger assets and long-term contracts will not withdraw from the projects in Kazakhstan.
Despite the tightening of the legislation, he said, the new investors, particularly from China and Russia, will enter the oil and gas market of the country.
Earlier, Kazakh politician Daniyar Ashimbayev stated that the withdrawal of Statoil from the Caspian shelf is not a tragedy for Kazakhstan; it is just a part of the working process.
Ashimbayev said it would be better to work with Statoil, which has a great practice and high technologies in the oil and gas sector and this company has great authority in the world oil markets.
But he added, "However, Kazakhstan holds negotiations with Central Asian and Eastern Europe companies who aim to participate at the investment projects in the Caspian shelf of Kazakhstan."
According to him, the important issue is not the reasons why companies withdraw from projects in Kazakhstan, but who will replace them and new investors' conditions for participation in the project. The politician stressed that there is an opportunity for the Kazakh oil and gas sector to widen its geographic scope of investors.