Keep up to date with the latest news from Kazakhstan and the team at Kazopp.
Posted 20/10/2014
In this third edition of our Kazakhstan Tax Series, we’re taking a closer look at tax penalties exporters can face for non compliance with tax rules and regulations in Kazakhstan and more importantly, how to avoid them!
Posted 15/10/2014
The operators of Kazakhstan’s largest oil fields, Kashagan, Karachaganak and Tengiz announced last month that they were to establish a joint venture engaged in the drilling and engineering fields.
Kazakhstan’s First Deputy Energy Minister, Uzakbai Karabalin, was keen to emphasise that “With [this] active phase of expansion.. high-tech types of service and equipment will be needed, and we will need to use every opportunity to establish competent local companies.” He went on to say that “[The] optimal option is to set up joint ventures with world leaders with the assistance of advanced technologies.”
It is well known that Kazakh companies often lack the experience, knowledge for complex oil, gas sector services, creating a huge opportunity for foreign companies to forge a way into the market to bridge the gaps in expertise. And this is no ordinary overseas market. One of the five Central Asian countries, Kazakhstan is rich with hydrocarbon reserves. The country’s production comes mainly from five onshore fields – Tengiz, Karachaganak, Aktobe, Mangistau, and Uzen – and two offshore fields – Kashagan and Kurmangazy, which are both located in the Caspian Sea.
The recoverable oil reserves of the Kashagan field are estimated at 11 billion barrels, whilst total geological raw material reserves stand at 35 billion barrels. In addition, natural gas reserves are estimated at over 1 trillion cubic metres. The Tengiz oil field is one of the deepest and largest oil fields in the world. Reserves of the deposit are estimated at 750 million to 1.1 billion tons (6-9 billion barrels) of recoverable oil. Karachaganak is another of the world’s largest oil fields. Its reserves amount to 1.2 billion tons, while those of natural gas are 1.35 trillion cubic metres.
Total oil production in Kazakhstan amounted to 81.7 million tons last year which is 3.2 percent more than in 2012. The forecasts show after 2020 around two million barrels of oil will be produced in Kazakhstan per day. The country plans to produce 83 million tons of oil, 41 billion cubic meters of gas, as well as to process 14.7 million tons of oil in 2014.
There are lots of companies in Kazakhstan who are looking to collaborate with overseas companies with the right skills and expertise. If you your SME is part of the high tech services industry or manufactures specialist equipment, particularly with applications in the oil/gas sector, now is the time to consider the type of growth your business could achieve by exporting to Kazakhstan. With many years experience of trading in country, we can help you make the connections you need to get started and smooth the way to working successfully in Kazakhstan.
Interested? To find out more about the opportunities available, call us on 01935 315055 or get in touch via the website.
Posted 23/09/2014
A recent article in the ICAEW’s Economia magazine highlighted that one of the main blockers to businesses choosing to export to a foreign country was concern about difficulties understanding local culture. Overseas UK embassies often fall short when it comes to business expertise, even if such resource is available, so there can be little help on hand for companies struggling to adjust to local business practice and customs.
But if businesses don’t find a way to bridge this gap, could they be missing out on some of the most lucrative export markets? Kazakhstan is a country the size of the whole of Western Europe, with a wealth of natural resources and in particular a flourishing oil and gas industry. The country plans to produce 83 million tons of oil, 41 billion cubic meters of gas, as well as to process 14.7 million tons of oil in 2014. These industries are huge and the potential to break into the market is not to be underestimated, particularly as Kazakh companies may not always have the necessary experience and knowledge for complex oil and gas sector services. And yet most British probably have little idea of local Kazakh culture, let alone business practice and procedure. Worse still, some may be influenced by fictional comedic characters of yesteryear which portray an inaccurate and misleading image.
So how can UK SMEs overcome such issues and seize this opportunity, without having to commit time and money to detailed research and building business relationships from scratch?
The simplest way is to link up with a company which already has the necessary experience and knowledge. With any luck, they will also have the contacts and business relationships to get your product or service to market in the quickest time possible. Moreover, it can save potential exporters perhaps months or years of research and groundwork in getting to grips with local regulatory and tax requirement and all that may be necessary to get started. With the right advice, companies can avoid the prospect of making mistakes early in their export journey into a new country, like Kazakhstan.
Like the idea of bringing your products or services straight to a vast new market? If so, get in touch – we have nearly twenty years of experience of running and helping business in Kazakhstan with a vast array of contacts and advice to help your SME hit the ground running! Can you afford not to make contact with Kazopp?
Posted 18/08/2014
Posted 19/05/2014
Update from Kazopp MD, Graham Potts in Kazakhstan
Flights on time, so we landed in Atyrau on schedule at 19.20 local time, to an outside temperature of 30°C! Proceeded through immigration – top tips, always get two stamps at immigration on the migration card handed out on the plane and you’ll need your baggage ticket (usually stuck to boarding card) for hold luggage, as this is checked before you leave the baggage area.
The Renaissance Hotel, Atyrau where the UKTI event will be held 19th-21st May 2014
Looking forward to the Shell/UKTI Kazakhstan Supply Chain Engagement Forum tomorrow – it seems one of the UKTI team didn’t get their visa through in time, so I’ve been asked and have agreed to help facilitate the one-to-one meetings scheduled tomorrow afternoon as part of the event. All good for promoting the Kazopp profile and our suppliers!
Check back tomorrow to find out more!
Posted 14/05/2014
Kazopp are playing a key role alongside UKTI in a forthcoming trip to Kazakhstan aimed at encouraging UK based businesses to consider exporting to the country. Managing Director, Graham Potts is returning to Atyrau and Aktau next week to promote our SME suppliers to key contacts in the oil and gas industry in Kazakhstan. Graham’s role as SME and procurement expert along with his extensive knowledge and experience of doing business in Kazakhstan mean that he is well placed to assist companies to capitalise on the huge opportunities for growth in this market.
Graham said “This is an exciting opportunity for us to promote the decisive nature of UK SMEs to our contacts in the oil/gas and construction sectors in Kazakhstan”.
Graham Potts, Managing Director at Kazopp
As the ninth largest country in the world, blessed with a wealth of natural resources and a strong, stable economy and political system, Kazakhstan presents incredible prospects and opportunities to would-be exporters. A state programme of accelerated industrialization has meant a raft of customs and tax incentives and other benefits are available, if you know how to take advantage of them.
Kazopp can help you do just that.
If you’re interested in this export opportunity, let us help you get started – contact us now on 01935 315055 or info@kazopp.com