Kazak Economy Minister Zhaksybek Kulekeyev said on February 7th that the ex-Soviet state hopes to lure $65-$70 billion in foreign investment to its oil and natural gas sectors over the next 10 years.
Kulekeyev said that: “Naturally, our huge natural resources and highly educated and well trained workforce attract investors.”
Kazakstan has received $10 billion in foreign investment since its independence in late 1991, with more than $1 billion in funding last year alone.
The Central Asian state is optimistic that its oil riches, predominantly located in the Caspian basin, will draw huge foreign investment to the country.
The majority of the government’s hopes are pinned on the massive, but so-far untapped, Kashagan field on the Caspian shelf, which could make Kazakstan a leading oil producer in the next 20 years.
The Offshore Kazakstan International Operating Co. (OKIOC) is test drilling on the field, but has yet to name an operator for the project or to determine whether Kashagan contains commercially recoverable reserves.
BP Amoco announced on February 2nd that it would sell its stake in the project to TotalFinaElf, possibly clearing the way for the French oil giant to assume the leadership of the consortium.
Kazakstan plans to boost oil output to between 745,000 and 800,000 b/d this year from 710,000 b/d in 2000. The increased production is largely due to the planned launch of a new pipeline from the Tengiz oil field to Russia’s Black Sea port of Novorossiisk.
The pipeline, constructed by the Caspian Pipeline Consortium, should be operational by the middle of the year.
© 2001 Mena Report (www.menareport.com)
