Foreigners can pump $20 billion out of Kazakh oil fields

Foreign professionals will be able to earn $15-20 billion in 7-9 years working on development of major oil fields of Kazakhstan, KazTAG reports citing press-service of Kazakhstan Union of Oil, Gas and Mining Companies. “According to estimates of some of the foreign recruiting agencies, implementation of the second stage of Kashagan and expansion of TCO and Karachaganak projects will require import of 100 thousand of foreign experts,” the Union’s press-release states. According to press-service, each foreigner will work for 1 year with an average wage of $15 thousand a month. “Such experts will be able to bring around $15-20 billion out of the country in 7-9 years,” the message states. All oil and gas countries have a similar practice when the government of Kazakhstan negotiates with them during issuing license for production and exploration and insists that as many works as possible are performed by local contractors. Foreign companies are attracted mainly as highly specialized contractors. These practices should be closely observed in Kazakhstan. “In our opinion, the state has to regulate the issue and work to increase local content among foreign companies' general contractors. Foreign contractors are the ones getting all the profits and bringing the money out of Kazakhstan, without investments into education, modernization of equipment and organization of production,” the press-service cites the chairman of Kazakhstan Service Companies Union Almas Kudaibergen as saying. According to the Union, Kazakhstan service companies can hardly squeeze into the technological process of major projects now as they are not involved at the initial stages.