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Kashagan to have no effect on Kazakh economy - expert

July 15 2013, 09:58

All profits from hydrocarbon sales in Kazakhstan go to Samruk Kazyna, not to the country budget. It means the long-awaited startup of Kashagan will bring no effect on Kazakh economy, said economist Kanat Berentayev in an interview to Vremya.

In his opinion, start of production at Kashagan field will have no effect on Kazakhstan's social climate.

"Samruk-Kazyna skims all the cream. At the same time, producing companies get their VAT back. The more expensive oil is, the higher is VAT. People will see no economic impact here. In any case, Kashagan will not help cancel the pension reform. It's a pure business project aimed at many targets, also to scale up the political heft of Kazakhstan," he says.

The expert remarked that developed countries demonstrate keen interest to Kazakhstan at times when they are short of energy resources or metals.

Continuous delay of the startup is a good explanation.

"I don't think partners in Kashagan need another 'big' well for now. The offshore field is also being used as a baton by oil companies. Assume that tomorrow Arabs put limit on crude production in their region. In that case, 'the black gold' will flow from the Caspian. Or imagine a political regime changes in one of the oil countries and oil supplies go irregular. To the help then will come tank cars from Kazakhstan," the economist stated.

Mr Berentayev noted that Kashagan's objective for now is to regulate world prices. Giving not a single barrel of oil today, it is already generating profit for its holders. In a single word, Kashagan is a political and economic best card in the hands of investors.


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