Business is great in Kazakhstan!
Last week, Kazopp MD Graham Potts was back in Kazakhstan on business. With both Top Gear and McDonalds recently making the news regarding their forays into the central Asian country, it seems like everyone is hot footing it there and really putting Kazakhstan on the map! Could your business be successful in exports to Kazakhstan? You could be pleasantly surprised…
Exports are often the key to growth for businesses which have exhausted the domestic market and the means to secure a company’s future. When thinking about potential export markets, there are a number of criteria to consider, but in the end, it really comes down to where your products, services or technologies will sell. In other words, it’s about where your business could be in demand.
Kazakhstan may not be the obvious choice for a business, but with a wealth of natural resources and a huge oil and gas industry, business owners overlook it at their peril.
Oil production is dominated by two massive on-shore fields in north west Kazakhstan – together Tengiz and Karachaganak produce around half of the country’s output. There is a further major oilfield, the Kashagan field, which is an off-shore field located in the Caspian Sea. It has huge recoverable reserves (estimated at between 8 and 13 billion barrels) which rank it the fifth largest field in the world. Complex production issues caused by difficult operating conditions have hindered the development of this field over the past couple of years. Basically, the field is located over 13,000 feet below the seabed where pressure levels are high. Then there is the presence of a high level of hydrogen sulphide to contend with – a highly toxic and corrosive gas, which it is believed may be behind pipeline leaks which have dogged production. New drilling and production technologies have been and continue to be sought, in addition to replacement pipelines made from higher grade and corrosion resistant materials. If the issues there can be resolved successfully, this field stands to make a significant contribution to Kazakhstan’s oil production levels.
The future of Kazakhstan as a leading oil producer rests on the expansion and development of these three fields, all of which are in various stages of discussion, planning and progress.
If you think your business could help resolve any of the challenges of oil production in Kazakhstan, why not get in touch? It could be the first step on the road to export success and significant growth for your business!