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New export duty rate to hit KazMunaiGas Exploration Production revenues

Oil&Gas Materials 3 April 2014 18:25 (UTC +04:00)
New customs export duty rate will seriously hit the revenues of the Kazkah KazMunaiGas Exploration Production JSC (subsidiary of National Company KazMunayGas, a state-owned oil and gas company of Kazakhstan)

Astana, Kazakhstan, April 2
By Daniyar Mukhtarov - Trend:

New customs export duty rate will seriously hit the revenues of the Kazkah KazMunaiGas Exploration Production JSC (subsidiary of National Company KazMunaiGas, a state-owned oil and gas company of Kazakhstan), the JSC general-director Abat Nurseitov said at a press-conference in Astana on April 2.

"Considerable funds are required to pay a new customs export duty, and as regarding with the devaluation of the tenge by 10 percent we increase salary, plus transportation costs. All of these significantly hit in our pocket," he said.

The general director said that investment in capital funds annually makes up 90 billion tenge ($ 1 = 182 tenge), out of which some 10-15 billion tenge are allocated for modernization.

The company has a "margin of safety" in the price of oil up to $ 85 plank per barrel , in order not to reduce its production costs, according to Nurseitov.

"If the price of oil will fall even lower, we have a plan B and plan C," he added.
As reported earlier, customs export duty rate on crude oil in Kazakhstan will grow by $ 20 from $60 to $80 dollars per ton.

The national budget revenues due to this will increase by 505.5 billion tenge, according to the forecasts of the Ministry of Economy.

The revenues of the national budget will increase due to the tenge`s rate growth to the dollar on the total amount of 303.3 billion tenge. Furthermore, the budget revenues of the country will affect the change of oil price.

The average annual oil price in 2014 will be $105.1 per barrel, according to the forecasts of international organizations. Given the strengthening of the dollar, the average annual price in the forecast amendment for 2014 was set at $ 95. Earlier, the oil price has been established in the Kazakh budget at $ 90 per barrel.


Translated by S.I.
Edited by C.N.

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