Kazakhstan curbs oil output but eyes future growth
Wednesday, July 28, 2021
Significance
The oil sector's contribution to GDP fell last year, but this was due only to the market impacts of the COVID-19 pandemic. Kazakhstan continues to depend heavily on oil exports for tax revenue and consequently for recurrent government spending and large public investments.
Impacts
- Rising production at the Tengiz, Karachaganak and Kashagan fields will increase their share of total output from 63% in 2020 to 72% in 2025.
- The continued concentration of foreign investment in the oil and gas sector will thwart attempts at economic diversification.
- Slowing production at old deposits in western and southern Kazakhstan is fraught with risks of social instability and unrest.
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