Kazakh state budget can lose up to US$2.314 billion in oil revenues, experts say
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. According to the Kazakh Association of Oil Service Companies, the country’s state budget is forecasted to lose almost one trillion Tenge (US$2.314 billion) of oil income.
The new OPEC+ agreement takes effect on May 1, within the framework of which Kazakhstan 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 percent, which will negatively affect the oil service industry, which in turn will lead to the job cuts. Thus, Tengizchevroil, one of the largest oil producers in Kazakhstan, intends to gradually decrease the work pace and cut the number of workers at the field.