Kazakhstan does not need to aggressively increase oil production, exports - president
ASTANA. Sept 10 (Interfax) - Kazakhstan does not need to aggressively increase oil production and exporting, since that would lead to a rapid depletion of available resources, Kazakh President Nursultan Nazarbayev says.
The priority is a conservative scenario calling for the stable production and export of petroleum resources until 2050, the president said in an address to the Eurasian Emerging Markets Forum in Astana on Tuesday.
"Various oil-production scenarios need to be considered most of all. With the conservative scenario there are all [conditions] for maintaining the steady production [and] export of oil resources until 2050, and that means ensuring the stable receipt of income by the National Development Fund. In the aggressive scenario, which is also possible, we can rapidly deplete our possibilities for exporting oil resources," Nazarbayev said.
There was 66,461,500 tonnes of oil extracted in Kazakhstan last year, down 1.9% from 2011, and 12,749,200 tonnes of gas condensate, up 3.7%.
"Raw material reserves have to support economic growth, but must stop being the main source of state income. This is a key task for the government," the president said.
For the Kazakh economy there is no long-term alternative to strengthening market mechanisms, Nazarbayev said.
"Most of all, it is important to ensure the most favorable environment for the strengthening of the entrepreneurial class. The 2008 crisis compelled the state to take a more active role in the economy. We had to get into the assets of our banks, which were experiencing very great difficulties," Nazarbayev said. "However, in the long-term plan there is no alternative to strengthening market mechanisms, and we are getting out of those assets. The proportion of state ownership in industrial [and] infrastructural enterprises is decreasing and will be decreasing," he said.