Tag Archives: Kazakhstan

Oil output falls in Kazakhstan

JULY 28 2016 (The Conway Bulletin) — Due to sustained low oil prices, Kazakhstan’s oil production could shrink further this year, according to Asset Magauov, deputy energy minister. Mr Magauov said that a majority of the companies operating in the country reported a decline in production in 2015. The official forecast for 2016 is 75.5m tonnes, a 5% reduction compared to last year. In March, then-energy minister Vladimir Shkolnik had projected a production target of 77m tonnes for 2016.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Gunman in Kazakhstan states his motives

JULY 27 2016 (The Conway Bulletin) — Ruslan Kulekbayev, who shot and killed six people and injured six others in Almaty in a shooting spree that triggered a major terrorism alert earlier this month, said that there were no religious motives involved in his rampage. The newspaper Vremya published extracts of Kulekbayev’s deposition, where the shooter dismissed any ties with religious organisations. Instead he said that he was protesting against what he said was unfair treatment from the authorities.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Kazakh tenge slides to five-month low

ALMATY, JULY 28 2016 (The Conway Bulletin) — Kazakhstan’s Central Bank said it will not intervene to prop up the tenge currency after it lost 3.5% of its value over the past week, hitting a five-month low of 354/$1 on Thursday.

This is the sharpest drop since February, the tail-end of a two year fall for the tenge during which it has lost half its value against the US dollar.

Even so, Adil Mukhamedzhanov, deputy director for monetary operations at the Central Bank, told Kazakh media that interventions would be light.

“Several factors impacted the exchange rate, chiefly low oil prices and worsening exchange rates of our trading partners,” he was quoted as saying.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Stock market: Nostrum Oil and Gas

AUG 1 2016 (The Conway Bulletin) — Amsterdam-based Nostrum Oil & Gas has posted lower revenues and production in H1 2016, but its share price continued to hold at around 300p because of bullish forward forecasts.

The company’s CEO Kai-Uwe Kessel said that in an era of low oil prices, cost-cutting is paramount. He also said that the company was focusing on building a small pipeline that would reduce its transport costs in 2017.

By focusing on cutting costs, however, the company seems to have been unable to regain either its production or its revenue stream from last year. Both were down by 12% and 41% respectively in H1 2016.

In the company’s statement, Mr Kessel remained confident that Nostrum’s production target will be met by the end of the year.

“We look forward to increasing production throughout the second half of the year to achieve our target 2016 production of 40,000 boepd,” he said.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Kazakh foreign ministry fires drunk diplomat

JULY 25 2016 (The Conway Bulletin) — Kazakhstan’s foreign ministry commented on the firing of an embassy worker in London, who was caught drunk driving last year. The ministry clarified that the unnamed person was not a diplomat, but a technician, who was removed from his post and sent back to Kazakhstan.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Angolan soldiers get injured in Kazakhstan

JULY 27 2016 (The Conway Bulletin) — Ten Angolan soldiers were injured in an explosion during an exercise in Kazakhstan, media reported. The injured soldiers were part of the Angolan team that was scheduled to participate in the International Army Games competition in Kazakhstan next week. It is unclear what caused the explosion.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Volatility to weaken the Kazakh tenge

AUG 1 2016 (The Conway Bulletin) — It has taken Kazakhstan a long time, but it could finally have reached its goal of having a free-floating currency.

The nightmare of last August when the tenge depreciated sharply against the US dollar after the Central Bank removed its currency peg, seems over.

That was the uncertainty of having a Central Bank chief, Kairat Kelimbetov, who didn’t show resolve and authority, and the uncertainty of living through a period of falling oil prices.

Gradually, since November 2015, when Daniyar Akishev was made the Central Bank chief, Kazakhstan has switched to a more hands-off policy, allowing the tenge to slide as the market demanded.

This new policy created another kind of uncertainty. The tenge will float freely, swept by oil prices and the performance of other currencies in the region.

This could mean that, with oil prices sliding back towards $40/barrel and the US Federal Reserve planning to raise interest rates, Kazakhstan could soon be facing an even weaker tenge.

The tenge depreciated by 5% this month, to 354/$1 and the outlook for the next few months is not promising. Analysts have said that this could be the beginning of a gradual slide that only much higher oil prices could reverse.

In an oil price scenario that has come to be known as ‘lower for longer’, a three-figure oil price, as it was in 2014, will remain unlikely for a while.

In addition, the Russian rouble seems to be limping behind the US dollar, which is causing a negative ripple effect on currencies across Central Asia and the South Caucasus. Kazakhstan’s membership of the Eurasian Economic Union bloc is, in this case, a determining factor for the tenge.

Domestically, too, with apparent terror attacks in western Kazakhstan and unprecedented violence on the streets of Almaty, the situation is not looking good. Insecurity has never been a foundation for currency stability.

And then, of course, there is the economic headache of negative growth, and falling oil production which will continue to undermine the tenge.

The tenge is unlikely to thrive in this contingency.

The ‘$1 stores’ that mushroomed across Kazakhstan towards the end of last year, selling items at the fixed price of 300 tenge, might now be forced to adjust their price, possibly on a daily basis, to reflect a worsening exchange rate.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Gunman kills 5 people in Kazakh city, sparks terror attack warnings

ALMATY, JULY 18 2016 (The Conway Bulletin) — A lone gunman killed five people in Almaty, sparking a rare terror alert in Kazakhstan’s financial centre.

Initially Kazakh officials drew a link between the gunman, Ruslan Kulikbaev, who shot dead four policemen and a passerby and Salafism, a devout Arabic form of Islam blamed for terror attacks, suggesting that he had become radicalised while in prison for an earlier crime.

This triggered a red terrorism alert in Almaty. Shops closed; people stayed inside.

But before the day was out, officials changed their story and reported that Kulikbaev was a lone gunman with criminal rather than religious intentions who had killed a prostitute the day before his Almaty rampage. He was later captured alive.

For analysts critical of the government, officials’ quick use of the terrorism label, underlined their knee-jerk reaction to play the security card to bolster President Nursultan Nazarbayev’s popularity.

Others, though, were more sanguine.

This year Kazakhstan has warned about a growth in attacks linked to the IS radical group which has targeted Central Asia as a prime recruiting ground and Aidos Sarym, an Almaty-based analyst, said Monday’s terror alert would damage the country’s reputation for stability.

“It’s definitely terrorism and it may damage Kazakhstan’s stability and security image prior to EXPO 2017 (in Astana),” he said

ENDS

(News report from Issue No. 290, published on July 22 2016)

Oilfield in Kazakhstan issues bond

JULY 21 2016 (The Conway Bulletin) — Tengizchevroil (TCO), the Chevron- led consortium exploiting the Tengiz oilfield in western Kazakhstan, issued a $1b 10-year Eurobond with a 4% coupon, lower than previously forecast, RIA Novosti said. Earlier in July, TCO approved a $37b expansion plan, which will boost production at Tengiz by 45% by 2020.

ENDS

(News report from Issue No. 290, published on July 22 2016)

Car sales drop in Kazakhstan

JULY 20 2016 (The Conway Bulletin) — Kazakhstan’s car production shrank by 62.2% to 2,980 units in H1 2016, compared to the same period last year, according to the Statistics Committee. This fall in car sales is an important indicator of the health of the economy and people’s expectations as to where it is heading.

ENDS

(News report from Issue No. 290, published on July 22 2016)