KAZAKHSTAN’S PRESIDENT PROMISES OIL BOOM

On a recent trip to Canada, Kazakhstani President Nursultan Nazarbayev declared the country’s oil sector was ready to boom. Many multinational oil conglomerates, however, may not share Nazarbayev’s optimism. Foreign oil executives have grumbled of late about unfair Kazakhstani practices, including attempts to alter established contracts. Nevertheless, Kazakhstan’s abundant resources may render the country impossible for foreign investors to ignore. A government initiative to raise energy-sector taxes could heighten corporate concerns about the Kazakhstani investment climate. Speaking at a joint session of parliament June 30, new Kazakhstani Prime Minister Daniyal Akhmetov told legislators that a government working group would prepare amendments to the country’s tax code by September 1. Akhmetov also characterized some existing oil-and-gas contracts as outmoded, but added that the government would not seek to rework deals made with foreign companies. Akhmetov’s comments came just three days after Nazarbayev, while on a five-day visit to Canada, delivered a major address on Kazakhstan’s energy-sector development efforts. The president told a group of energy executives in Calgary that Kazakhstan plans to expand its oil production to 180 million tons by 2015, up from current levels of 50 million tons.