Kazakhstan

Kazakhstan’s EITI Reports for 2010 and 2011, released on 29 December, indicate a steady increase in revenues from oil, gas and mining.

Peru and Mauritania were this week found to be in compliance with the EITI standard.

The EITI is pleased to welcome Glencore International plc as the latest EITI Supporting Company. Glencor

On 13-16 June 2011, more than 30 representatives from Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia and Tajikistan gathered in Cholpon-Ata, Kyrgyzstan, for the second EITI Issyk-Kul International C

In recognition of their progress in implementing the EITI, the EITI Board has concluded that Kazakhstan, the

Kazakhstan

Kazakhstan
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Overview of Extractive Industries

Kazakhstan has the largest recoverable crude oil reserves in the Caspian region. The hydrocarbon industry is estimated to account for roughly 50% of the Government's revenues (BP Statistical Review of World Energy 2011). Proven natural gas reserves are estimated at 106 trillion cubic feet (Tcf). Kazakhstan is the world's largest uranium producer and has extensive mineral resources (chromium, lead, zinc, manganese, copper, coal, iron, and gold).

Status of EITI Implementation

On 15 February 2012, the EITI Board renewed Kazakhstan’s Candidate status for 18 months (until 15 August 2013), by the end of which Kazakhstan has to undertake a validation that demonstrates compliance with the EITI rules.

Kazakhstan published its fifth EITI report covering 2009 data in June 2011. The report disclosed payments and revenues from oil, gas and mining amounting to US$ 12.9 billion. Corporate income tax represent 41 % of revenues disclosed while royalties represent 19 %. Preparations for the 2010 EITI Report are underway.

Background

President Nazarbayev announced Kazakhstan’s endorsement of the EITI in 2005 and Kazakhstan was admitted as an EITI Candidate country on 27 September 2009.

The Validation report was submitted to the Board in August 2010. On 14 December 2010, the EITI Board designated Kazakhstan, as an EITI Candidate country that is “Close to Compliant”. Kazakhstan was granted six months (until 12 June 2011) to complete the remedial actions needed to achieve compliance. The Secretariat conducted a review of the remedial actions. Based on the findings of the review, the Board decided that not all EITI requirements had been met and that Kazakhstan must undergo a second validation by 15 August 2013.

Kazakhstan has published five EITI Reports. In June 2010, Kazakhstan issued its third and fourth reports covering financial years 2007 and 2008. The first and second EITI reports covering 2005 and 2006 data were published in 2008 and 2009 respectively. The number of companies disclosing data has increased from 38 companies in the first EITI report to 123 companies in the latest EITI report.

At the EITI Global Conference in Doha in February 2009, Kazakhstan received the EITI Chair’s awards for their efforts increase EITI awareness across their vast country.

Governance of EITI Implementation

A National Stakeholders’ Council including members of Government, Parliament, companies and civil society coordinates EITI implementation.

EITI Champion

Mr. Kairat N. Kelimbetov, Deputy Prime Minister of Kazakhstan

Companies operating*

Oil & gas companies: BG Group*, BP*, Chevron Corp*, ConocoPhilips*, Eni*, ExxonMobil*, Repsol*, Shell*, Statoil*, TOTAL*, CITIC Group (China), CNPC (China), Gazprom, Inpex (Japan), LukOil, OMV (Austria), Petramina (Indonesia), Rosneft, Sinopec, Maersk Oil, Victoria Oil and Gas.

Mining companies: Arcelor Mittal*, Areva*, ENRC, Glencore, Kazakhmys, RUSAL, Uranium One
* EITI Supporting Company

* Note: Company list based on EITI research and is not conclusive

For further information, please contact Dyveke Rogan at the EITI International Secretariat.

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