Azernews.Az

By Aynur Jafarova

A decrease in the world oil prices expected by late 2014 will not have a significant impact on the Kazakh economy, the country’s National Economy Ministry told Trend Agency on November 17.

"It should be stressed that despite the decline in oil prices in October, the average annual oil price amounted to $106.6 dollars per barrel in the first nine months of this year,” the ministry said. “In case of further decrease in oil price up to $80 per barrel by late 2014, the average annual price will remain at $100 per barrel. The budgeted average annual price of $95 per barrel according to the updated forecast of the socio-economicdevelopment for 2014-2018 should be taken into account.”

However, given the deterioration of the external conditions, the Kazakh government worked out an action plan for the country’s economic growth by late 2014, aimed at ensuring the stable economic growth.

Works on clarifying the socio-economic development forecast for 2015-2019are underway as well. The Kazakh government will also consider the current situation on the world commodity markets and the adjusted forecasts of international organizations concerning the world prices on the main export goods.

The government took Kazakhstan’s economic development with the oil price of $80 per barrel in 2015 as the basis. Currently, the Kazakh Parliament is considering the revision of the parameters of the draft state budget for 2015 - 2017.

The ministry went on adding that as for the national currency, the oil price of $80-85 per barrel will not impact it dramatically.

"According to the Kazakh National Bank, the foreign exchange adjustment in February 2014 gives tenge a certain margin of safety," the ministry said.

The National Bank conducted tenge devaluation in February 2014. As a result, the dollar compared to the tenge increased by 19 percent.

Vienna will host the annual meeting of the OPEC member-states on November 27. The countries will decide whether they will choose a decline in the production amid the worsening forecasts for the oil consumption in the world, a substantial increase in production in the US, as well as significant reduction in oil prices.

According to the analysts, if such a decision is made, the oil prices will increase.

Kazakhstan, one of the five Central Asian countries, is rich with hydrocarbon reserves. The country's production comes mainly from five onshore fields - Tengiz, Karachaganak, Aktobe, Mangistau, and Uzen - and two offshore fields - Kashagan and Kurmangazy, both located in the Caspian Sea.

The Statistics Committee of the Ministry of National Economy said earlier that crude oil production in the country amounted to 53,585 million metric tons for 8 months of this year, and this is 0.7 percent less compared to the same period of 2013.

The production of crude oil amounted to 45,012 million metric tons, condensate to 8,573 million metric tons and natural gas to 28.3 billion cubic meters in the reported period.