Astana, Kazakhstan, Jan.20
By Daniyar Mukhtarov - Trend:
It is necessary for Kazakhstan to introduce tax benefits for the development of low-profitable fields, according to Director General of the KazEnergy Association, Asset Magauov.
"In fact the current fiscal system doesn't stimulate the optimisation of field development systems and the increase of oil recovery, as the envisaged tax benefits for the development of low-profitable fields are not applied in practice," Asset Magauov told Trend.
"The problem of double taxation of oil exports through rent tax and export customs duty haven't been resolved in a long time," according to the director general.
"Oil production in Kazakhstan in recent years is kept at the level of 80 million tons per year. It is expected that its growth will mainly be provided through the development of large oil and gas projects such as Kashagan, Tengiz and Karachaganak that will compensate the forecasted drop in production in other fields. Meanwhile, the maintenance of the production level after 2025 will be possible only through the development of new fields," Magauov said.
Additionally, Magauov believes that it is necessary to take into account that following the completion of the refineries modernisation, their demand for crude will increase and alongside with the possible reduction of oil supply from Russia, this will create a necessity to increase the Kazakh oil supply to the domestic market significantly.
"It is not possible to ensure the loading of a refinery without involving the oil supply from large projects and providing equally profitable prices for oil," the director general said.
Three refineries in Kazakhstan must be modernised by 2017.
Translated by L.Z.
Edited by S.M.