Our View: Despite prolonged delays at the giant Kashagan field, which are suppressing Kazakhstan’s huge
underground potential, and the gradually worsening regulatory environment, we maintain a largely positive
longer-term outlook for the country’s oil and gas sector. Between 2014 and 2024, we forecast Kazakhstan’s
oil and gas output to increase by 46% and 86% respectively, thus boosting exports and supporting the
country’s oil-dependent economy.
Key developments in Kazakhstan’s oil and gas industry:

  • In May 2015, UK-based Roxi Petroleum announced that drilling at the Deep Well 801 on the BNG
    contract area in Kazakhstan has reached a depth of 4,649 metres (m) and is drilling in the Lower
    Permian. An analysis of drilling fluids has revealed traces of gas condensate, which is an indicator of an
    oil-bearing formation. A core sample is being taken at a depth of between 4,646m and 4,664m to assess
    the extent, if any, of signs of oil-bearing rock at this interval.