Azerbaijan, Baku, 21 Feb. / Trend, E. Kosolapova /
The presence of foreign companies in the development of oil and gas projects is necessary for Kazakhstan, as the country doesn't possess all the required technology for conducting these works by itself, expert from the Kazakhstan Institute of Political Solutions Sergey Smirnov told Trend.
"Kazakhstan may independently develop small and medium-sized projects onshore, but is not capable of developing offshore projects without assistance, as there is no relevant expertise or equipment or technology. Therefore, Kazakhstan has to invite foreign companies who will bring their own technologies," Smirnov said.
According to him, the tightening of laws regarding the subsoil use in the country, as well as withdrawal of such companies as Statoil and ConocoPhilips from projects in Kazakhstan may scare off some new investors.
"New companies will observe and analyze the reasons behind the withdrawals of other companies. Questions such as "did this happen because of problems within the company, or did this have something to do with the investment climate?" Conclusion will not conform with Kazakh rhetoric," Smirnov said.
At the same time, in his view, the withdrawal of companies from projects in Kazakhstan is rather exceptional.
"In particular, ConocoPhilips had major domestic issues. The Kashagan project (which the company plans to sell its shares in) is under delay. It remains unknown when it really starts operating and bringing output. However, making investments (and rather large ones) is necessary at this moment," Smirnov said.
The withdrawal of investors with great assets in Kazakhstan and long-term contracts from the projects in unlikely, Smirnov added.
According to him, despite the tightening of legislation, the new investors, particularly from China and Russia, will enter the oil and gas market of the country.
Tightening of the legislation regarding the mineral resources, according to experts, is inevitable and necessary.
"The state tends to return whatever it has been previously distributing, making attempts to correct the mistakes, admitted in 1990's. However, there is a need to observe the extent to which this can be done, which is followed by the point of no return, when foreign investors start to scatter," the expert said.