The Kazakh authorities have increased their arbitration claims against international oil companies involved in the development of the Kashagan oil field. The claims now exceed $150 billion and seek compensation for lost revenue in addition to ongoing disputes over the production costs.
Prime Minister Olzhas Bektenov and Upstream Director of the Italian company ENI Luca Vignati reviewed ongoing joint work at the Karachaganak and Kashagan fields and explored opportunities for launching new projects in renewable energy sources at a meeting on March 27, reported the Prime Minister’s press service.
Kazakhstan’s GDP is expected to grow at a moderate pace in the next two years, driven by oil and consumer spending.
Inflation is likely to remain above target in the short term, but is projected to decline over time.
The World Bank recommends reforms to improve the effectiveness of monetary policy and reduce the budget deficit.
Kazakhstan aims to boost its oil exports through the trans-Caspian corridor and to Germany via the Druzhba pipeline, despite potential complications with Russian transit approvals.
The country experienced a 10% increase in oil exports in 2023, reaching over 70 million tons, but saw a 10% drop in revenue due to declining oil prices.
Concerns arise over the Caspian Pipeline Consortium as a Turkish terminal refuses oil deliveries to avoid US sanctions, highlighting the geopolitical complexities affecting Kazakhstan’s export strategies.
Coming amid attacks on refineries, ban is intended to avert shortages and spiking prices on the domestic market.