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Kazakh state budget can lose up to $2.314 billion in oil revenues

Kazakh state budget can lose up to $2.314 billion in oil revenues

Nur-Sultan, April 27 - Neftegaz.RU. Fluctuations in oil prices, as well as the slump in oil demand amid the COVID-19 pandemic may deprive Kazakhstan of significant revenues this year, Kazakh TV reported.

According to the Kazakh Association of Oil Service Companies, the country’s state budget is forecasted to lose almost one trillion Tenge ($2.314 billion) of oil income.

The new OPEC+ agreement takes effect on May 1, within the framework of which Kazakhstan, a key oil exporter in Central Asia, will reduce oil production by a total of 1.5 million tons. This will lead to a decrease in volume of oilfield services by 40 %, which will negatively affect the oil service industry, which in turn will lead to the job cuts.

Oil services companies in Kazakhstan will face a large reduction in jobs. Today, over 2 000 companies are represented in the country’s oilfield services, with about 200 000 employees.Thus, Kazakhstan’s biggest oil producer Tengizchevroil (TCO), intends to gradually decrease the work pace and cut the number of workers at the field.