WEEKLY REVIEW: Kazakh Cabinet focuses on further oil industry development

On Monday, April 7, Minister of Oil and Gas Uzakbay Karabalin announced the new data on Kazakhstan's oil reserves. Ex-Minister of Oil and Gas Sauat Mynbayev in 2012 reported that Kazakhstan's oil reserves will last for another 50-60 years. "Geological survey estimated that Kazakhstan oil reserves will increase two - three times. Oil reserves will be enough for another two or three generations", said U. Karabalin at the Government hour at the Majilis. "On average, we will produce 100 million tons of oil annually. This is the amount that will contribute to the necessary revenues and stable development of the economy", added Karabalin. An aromatic hydrocarbons production complex at the Atyrau refinery will begin operations in the second half of 2014, Karabalin voiced. "100% of the main process equipment was delivered to the aromatic hydrocarbons production complex at the Atyrau refinery in 2013. Construction and installation work is underway. The project is expected to be launched in the second half of 2014," he said. He also said that a consortium consisting of "Sinopec Engineering" (PRC), "Marubeni" (Japan) and "KazStroiServis" began works under the contract on the construction of the deep oil processing plant at the Atyrau refinery. In addition, according to the ministry, there was signed a contract with "Rominserv" Company for the first stage of modernization of the Pavlodar petrochemical plant. As for the Shymkent refinery, there was approved a strategy for accelerated implementation of the project and the transition to the investment stage. Construction works started. "The process of modernization of three Kazakh oil refineries will be completed in 2016. As a result, in 2017-2022, the country will be fully provided with gasoline, diesel and jet fuel in accordance with Euro-4 and Euro-5 standards," Karabalin added. On Tuesday First Vice Prime Minister of Kazakhstan Bakytzhan Sagintayev said that Kazakhstan will keep its national currency. "I don't know where do the rumors of a single national currency in the Eurasian Economic Union come from, but that has never been discussed. There will always be tenge in Kazakhstan," Mr. Sagintayev said at a press briefing of the Central Communications Service. He also added that Kazakhstan, Russia and Belarus withdrew non-economic cooperation issues from the draft treaty on the Eurasian Economic Union. The Eurasian Economic Union is not a political alliance. The treaty embraces exceptionally the issues of economic collaboration. "No one will forbid Kazakhstan to conclude agreements with the third countries within the Eurasian Economic Union," Bakytzhan Sagintayev stressed. "It is noteworthy, under the treaty nothing bans us to make deals with the third countries and international organizations. Our principle is a multi-vector foreign policy," he said. National wide drill to test the readiness of the security forces on maintaining public order and security is being carried out in Kazakhstan. Kairat Kozhamzharov, assistant of the President - Secretary of the Security Council of the Republic of Kazakhstan supervises the drill on April 10. Police officers and soldiers of the Interior Ministry troops as well as fire service and other emergency services personnel have been involved in the training. The drill is aimed to develop state bodies' interaction, inspect technical equipment of police and rescue services and check their actions in crisis situations. Inspectors of the Security Council are verifying the readiness of the forces and equipment. On Friday President of Kazakhstan Nursultan Nazarbayev chaired the meeting of the Council of the National Investors. A the end of the sitting the President gave certain instructions to the Government. In particular, the President has charged the National Bank and the Government to develop a strategy of investing the assets of the United National Pension Fund by June 1. Besides, the President stressed the need of elaborating the extra incentive package for the development of the available tenge market. "It is the dedollarization of the country's financial sector," Nursultan Nazarbayev said. "Business development is the core of the country's Development Strategy 2030 and the concept for joining the top 30 developed countries of the world. The point at issue is the development of small and medium-sized business," the President stated. The head of State conferred responsibility for the development of small and medium-sized business on 1st Deputy Prime Minister Bakytzhan Sagintayev. According to the President, Kazakhstan took unprecedented business support measures, such as micro-lending in rural localities and business support under the Business Roadmap 2020, subsidizing of interest rates upon the projects and publicly-funded staff training within the Employment 2020 program. In his turn, Sagintayev assured that the Government will make every endeavor to fulfill the President's instructions.