Emerging Country As Kazakhstan Commerce Essay

A instance survey research method is the most appropriate attack to obtain deeper apprehension of “ how ‘ and “ why ” companies puting in such, what impact they had on its economic system, how they evaluate future attraction of this state. Case study attack contributes our better apprehension of a complex job or object, and can add strength or widen experience to what is already known from old surveies. Case surveies emphasize elaborate contextual analysis of a limited figure of events or conditions, and their relationships. Case study research method is really popular among research workers, who have used this attack for many old ages in assorted subjects. Expert Robert K. Yin defines the instance survey method as an empirical research that examines a modern-day phenomenon within its real-life conditions, when the boundaries between phenomenon and context are non apparent, and in which several beginnings of information are used. ( Yin, 1984, p. 23 ) .[ 1 ]

In this survey it was used a multiple instance methodological analysis, carry oning two interviews with two international companies which are puting in oil industry of Kazakhstan. This chapter presents the interview consequences in chapters: advantages following OLI theoretical account by Dunning,

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5.1 INTERVIEW PROCESS

As it was mentioned before survey is based on a qualitative research method and conducted with interviews. Two foreign oil companies agreed to take part in research. The first 1 is Chevron with caput office in US, and the 2nd one is British Gas Group with caput office in UK. The interview attack was guided by the undermentioned set of open-ended inquiries.

Please supply information about the market portion of your company in

-global market

-Kazakhstan market.

In footings of capital and employees figure, what is the company size in planetary sphere and peculiarly in Kazakhstan?

What are the chief factors that influenced determination of your company to put in Kazakhstan oil market?

What type of entry mode your company selected for come ining oil market of Kazakhstan, and why?

What approaches have the company used for part with local companies in Kazakhstan? ( strategic confederations, joint ventures )

What actions were taken by the company, in footings of market information in the Republic of Kazakhstan,

– before come ining oil market of Kazakhstan?

– after come ining Kazakhstan oil market?

What inducement have Kazakhstan authorities provided to your company during the investing procedure in Kazakhstan?

Please supply information about direction advantages of your company.

In footings of new engineerings, what innovations the company can convey in oil market of Kazakhstan?

How your company see Kazakhstan ‘s -labor costs

-land costs

-production costs?

Please supply information about political, economic and societal state of affairs of Kazakhstan oil market from the company ‘s point of position.

How your company see substructure in Kazakhstan? Is it attractive for foreign investors?

How do you believe what impact does FDI hold on Kazakhstan economic system? And what is your company ‘s impact on oil market of Kazakhstan?

What do you believe about future attraction of Kazakhstan oil market for FDI?

This list of inquiries was sent to every company in progress in order they could hold overall image of the contents and intent of the interview and some clip for readying. These inquiries were adapted to aims of the research, besides to the context of industry and used as a basic model for each session, which helped to construct the consequences. Session started with general account of the intent of the survey, after that there was general treatment about the company ‘s grounds of puting in Kazakhstan. Participants expressed their apprehension refering the determiners and motive of puting and how such sort of web can assist their internalisation determinations. Every interview lasted about two hours continuously. The linguistic communication used in the interviews was English and Russian. The chief features of the interview participants are listed in the tabular array below.

Table 5.1 Characteristics of Interviewee companies

Company

Chevron ( Case analyze one )

BG Group ( Case analyze two )

State

United States

United Kingdom

Industry

Oil and gas

Oil and Gas

Year of Foundation

1985

1984

Entered Kazakhstan

1993

1997

Entry manner

Joint venture

Joint venture

Employee

67000

6195

Harmonizing to the Table 5.1 it is obvious that companies were chosen by specific standards. Both companies are taking participants on planetary energy market and had really similar experience in oil sector on international degree. The head office of Chevron is in United provinces, while for BG Group place state is United Kingdom. Both Chevron and BG Group were founded in mid-80th of last 20th century. Chevron entered oil market of Kazakhstan in 1993, and BG Group in 1996. The initial entry manner of the followed companies was joint venture. Both chosen companies are immense with important figure of employee.

The following tabular array represented below demonstrates really of import information refering cardinal indexs such as oil militias and resources, oil production, runing net income of Chevron and BG.

Table 5.2 Key indexs of interviewee companies

Militias and resources ( million of barrels )

Production

( thousand b/d )

Chevron

7,350

1,649

British Gas

13,726

619

5.2 THE RESULTS OF INTERVIEWS

5.2.1 CASE STUDY ONE

Chevron Corporation is one of the universe ‘s largest suppliers of energy, and involved fundamentally in every sector of the oil industry, from geographic expedition and production to transit, refinement and retail selling, every bit good as petrochemical fabrication and gross revenues. The chief ground of Chevron puting in Kazakhstan is that the Caspian part is one of the cardinal growing countries in crude oil industry. The Caspian part has a really high degree of geographic expedition, every bit good as development activity. Nowadays Kazakhstan plays an of import function non merely in Chevron ‘s planetary portfolio, but in portfolios of assortment international corporations.

Chevron to come in to oil market of Kazakhstan took such entry manners as joint venture with local companies, because of deficiency in information of this peculiar state and its concern operations. On April 6, 1993 Chevron established the largest joint venture between a Western company and a state of the former Soviet Union. The consequence of this is ( TCO ) , which was created to develop the largest find in the past 30 old ages – the Tengiz oil field in western Kazakhstan. Chevron has a 50 per centum portion in Tengizchevroil ( TCO ) company, along with such companies as ExxonMobil ( 25 per centum ) , Kazmunaigaz ( 20 per centum ) and LukArco ( 5 per centum ) . Since that clip, Chevron has made extra investings in other sectors of Kazakhstan economic system, including petrochemical merchandises fabrication and retail gasolene selling. Furthermore, Chevron Corporation has a 20 per centum portion in the Karachaganak. In 2009, Chevron ‘s mean net oil production was 211,000 barrels per twenty-four hours, including 191,000 barrels of petroleum oil, 91 million three-dimensional pess of natural gas. While, from operations around the universe in 2009 Chevron produced 2.7 million net oil-equivalent barrels per twenty-four hours.

The figure of employees in planetary oil market of the company is about 67,000, in Kazakhstan is about 2000 people. Interesting fact is that, from 1993 up to now, company ‘s direct payments to entities of Kazakhstan, including employees, exceeded $ 16.7 billion, for illustration merely in 2006 entirely, those payments reached about $ 4.3 billion. Furthermore, in comparing with 1993, when Kazakh citizens make up less than 50 per centum of the Tengiz work force, now there is more than 80 per centum of Kazakh occupants work in Tengiz and represent more than 71 per centum of its supervisors, directors and specializers, it means that citizens of Kazakhstan are now a fast turning portion of the direction construction. For faster development of this procedure TCO on a regular basis sends employees with high potency on preparation assignments abroad, in such states as the US, UK, Thailand and other. Currently, about 20 Kazakh employees are working on Chevron assignments outside the state.

For part with local companies of Kazakhstan, Chevron ‘s activities are focused on edifice strong capacity to advance Kazakhstan ‘s economic development and to set up stable, long-run relationships. Nowadays Chevron strongly invests in community engagement enterprises and focal points on edifice institutional and human capacity in order to excite economic growing and enable communities to boom. Chevron spouses with national and local authoritiess, assorted nongovernmental organisations, communities and other groups in order to present these targeted enterprises in three specific countries: basic human demands, instruction and calling preparation, and support for local little and moderate-sized endeavors. The Small and Medium Enterprise plan ( SME ) was created by Chevron in coaction with the European Bank for Reconstruction and Development, the United Nations Development Program and the U.S. authorities. Already more than 1 million dollars was provided to SME “ alumnuss ” in signifier of small-business loans. In period from 1993 to 2009, Tengizchevroil spent more than $ 600 million for societal undertakings funding in the Atyrau part for the community and local employees.

Chevron is committed to better wellness and safety state of affairs of Kazakhstan. Company finances nomadic clinic in the diagnosing and intervention of TB in the Almaty and Atyrau Region. This activity contributed scrutiny of 8,000 people and more than 80 per centum of those found with TB have recovered. Furthermore, Chevron delivers medical specialties and medical equipment for regional AIDS centres, Children ‘s Department of Kazakh Research Institute for Oncology and Radiology and Kazakh Department of the Cardiology Research Institute.

Chevron pays a batch of attending to future coevals of Kazakhstan, company supplies schoolroom equipment, text editions, computing machines, provides pupil ‘s scholarships and organizes preparations for instructors.

Foreign investors ever bring to host state new engineering and inventions. Chevron applies the most up-to day of the month engineering, equipment, methods and patterns to its Kazakhstan ‘s oil and gas concern. These engineerings were implemented with a position to cut down costs, speed up development and addition militias. The go oning migration of downstream processing engineerings to upstream applications unsures that national workers are exposed to the latest developments in oil field operations. Tengizchevroil ‘s Sour Gas Injection/Second Generation Plant uses a alone combination of conventional and freshly developed sour-gas injection engineering to treat petroleum with a really high rancid gas-to-oil ratio. This undertaking may pave the manner to using the engineering more loosely within the Tengiz reservoir, with the possible to increase recoverable militias.

Chevron, of class, has direction advantages and direction squad that offers these advantages consists merely of high-profile professionals, with a great international experience. Company widely advancing ethical and moral behaviour of every employee, besides conducts developing for all forces of the company refering quality, wellness, safety, environment system ( QHSE ) .

In footings of market information in Kazakhstan Chevron as was working before and after come ining to the state ‘s market maintaining the same place. Chevron is a strong participant on planetary energy market and its chief mark is bring forthing oil and gas. The inducement that authorities of the host state ( Kazakhstan ) provided to Chevron are low revenue enhancement government, growing of the economic system of the state, political stableness, handiness to its oil sector, important sum of the resources, low land monetary value, low labour cost and immense potency for growing and development. Although the authorities of Kazakhstan provided such inducements, it has a great power, which appears as a strong control in fiscal ordinances, rigorous environmental criterions, rigorous supervising over fiscal coverage.

Kazakhstan is developing state with immense natural resources and possible in oil sector, but there is a deficiency of experient and qualified specializers in oil sector. Company recognizes the bargain rate of labour, but there is such important failing as these employees are non so effectual. And we found a solution to these job – preparations of employees and alumnuss, which besides include directing them abroad and tonss of scholarships for instruction as in Kazakhstan and abroad. Land costs of Kazakhstan are cheaper than in other states and it was of the most attracting advantages that influenced investing determination. But it is necessary to advert that nowadays the monetary value of the oil Fieldss is turning dramatically, largely owing to oil monetary value growing and high competition. The monetary value of oil field depends on geographic expedition and quality of oil Fieldss and its capacity.

The company saw Kazakhstan as politically stable state with the same president since deriving independency ; Kazakhstan can be positively characterized by stableness in revenue enhancement government that was playing large function every bit good. It is of import that Kazakhstan has good political dealingss with Europe, Russia, and China. Kazakhstan is developing state with fast turning economic system, important sums of FDI influx. Furthermore, Company sees Kazakhstan as democratic, transnational state. But there is some point concerning civilization and outlook of people, they afraid to swear to international companies and investors, these jobs makes it difficult sometimes to work

Company sees Kazakhstan as a democratic and stable state with stable president since independency. Kazakhstan is development state with turning economic system, particularly in oil sector. Kazakhstan has a few populations ; most of them have a high instruction.

The substructure in Kazakhstan has improved since the company came here. There is still a immense positions for 1000000s investing. And its is of import to advert a necessity of betterments in fiscal domain, legal field and transit substructure in order to do operations more efficient.

5.2.2 CASE STUDY TWO

BG Group has been active in Kazakhstan for more than 15 old ages, from 1997. Company is joint operator of the elephantine Karachaganak gas condensate field, one of the biggest Fieldss non merely in north-western Kazakhstan, but besides in the universe. Furthermore, British Gas is a stockholder in the Caspian Pipeline Consortium ( CPC ) , the grapevine of this pool links militias in western Kazakhstan to the Black Sea, supplying entree to universe markets.

The influential factors that company have considered in its investing program in Kazakhstan are fast growing of economic system, large potency in oil and gas industry, effectivity, which can present adding value. Kazakhstan is a progressive and dynamic spouse for BG Group which is committed to market reforms and development. Kazakhstan with its immense and rich natural resources coupled with great strategic location, motivated work force provides great investing chances. Kazakhstan is besides impressed BG Group by its stable political and investing clime ; besides company sees its clear committedness to long-run economic growing and bettering criterion of life.

British Gas group owns 32.5 per centum of Karachaganak field, along with such immense companies as Eni with its 32.5 per centum, Chevron – 20 per centum and Lukoil 15 per centum. BG is besides a stockholder ( 14.29 % ) in the North Caspian Project, with Agip KCO as the operator of the North Caspian PSA, which includes the find of Kashagan. In the following undertaking CPC the company has 2 per centum and spouses with Russian Government 24 per centum, Kazakh Government 19 per centum, Chevron 15 per centum, LukArco 12.50 per centum, ExxonMobil 7.50 per centum, Rosneft – Shell 7.50 per centum, Omani Government 7 per centum, Eni 2 per centum, Oryx 1.75 per centum and KPV 1.75 per centum.

BG Group is one of the most successful immense companies, which is known all over the universe. It ‘s employee figure reaches about 6100 people globally, and in Kazakhstan this figure is about 2000 employees.

BG Group continuously provides new engineerings, paying great attending to presenting appropriate degree of experience to the local applied scientists and specializers. Company has a immense experience of operating in international oil market and sharing it with Kazakhstan by supplying incorporate manner of procedure for acquiring international experience through specializer ‘s rotary motion between different states. Bg Group actively invests in assorted societal undertakings and instruction of future coevals of Kazakhstan.

Furthermore, community engagement programmes of BG are chiefly driven by company ‘s corporate duty concern rules and focused on protection of the environment of host state, instruction and accomplishments transportation. Today BG Kazakhstan is a member of such associations as: Kazakhstan Foreign Investors Council Association, European Business Association, Kazakhstan Petroleum Association, and American Chamber of Commerce.

Today BG Kazakhstan is back uping the development of station alumnus programmes at one of the well-known universities of the state – Kazakh British Technical University ( KBTU ) . This sponsorship has been undertaken in coaction with Shell, 3 universities of Great Britain and the British Council.

BG Kazakhstan has organized a nine-month preparation and educational programme in Uralsk for orphaned immature grownups in order to equipt them with, of import presents, computing machine accomplishments necessary for IT specializers and web interior decorators, besides organized Kazakh and English languages classs all over the state.

One of the most of import undertakings of BG Group is Chair of Environmental Technologies at the really developed Almaty Institute of Energy and Telecommunications, which promotes research in the apprehension and possible redresss for some critical environmental jobs in Kazakhstan. In 1996 in cooperation with the University of Southampton was created a Masterss class, intensive programme of this class provides environmental scientists, directors and applied scientists with experience and makings for direction in Kazakhstan.

Bg Kazakhstan realizes that the safety and wellness of its employees, along with protection of the environment are really of import for overall success of the company. Company ‘s concern policy and rules commit to accomplishing the highest degrees of public presentation refering wellness, safety, security and the environment ( HSSE ) , that is why this remains a paramount public presentation for BG.

Company engaging merely qualified specializers or developing non prepared of them abroad before and with oil field in the beginning BG was the first who invested on it. The authorities of Kazakhstan provides the most attractive point is figure of legal revenue enhancement that is one of the lowest in the universe.

Infrastructure of Kazakhstan is rather convenient for making concern at that place, as an grounds for that is a quite sufficient figure of attracted and active investors. The labour and land cost are matching to the demands and demands of the market and BG Group is besides rather satisfied and do n’t see any incommodiousnesss. Company tries to enroll merely qualified employees, while those who in the sentiment of BG are non good prepared normally are sent for preparation to local educational centres or abroad. BG was the first who invested in Kazakhstan ‘s oil sector of economic system, and foremost realized that the Government of the Republic of Kazakhstan provides really attractive conditions for the foreign companies ‘ operation, for illustration legal revenue enhancement, which is one of the lowest in the universe.

BG has a really rich experience in operating in Kazakhstan ‘s oil market and do n’t see any jobs related to local facets.

5.3 THE ANALYSIS BASED ON INTERVIEWS

ADVANTAGES FOLLOWING OLI MODEL BY DUNNING

As it was mentioned before there is an attack the OLI Paradigm ( Buckley and Casson, 1976 ; Dunning, 1977 ) that is strive to make an overall model to explicate why MNEs take FDI instead than function foreign markets through alternate manners such as joint ventures, licensing, direction contracts, strategic confederations and exporting.[ 2 ]Harmonizing to so name Dunning OLI Paradigm ( 1988 ) FDI arises when there are satisfied three conditions: ownership, location and internalisation.

A house must hold competitory advantages in its place market. These must be firm-specific, non easy copied, and in signifier that allows them to be transferred to foreign subordinates.

Chevron and BG Group are well-known companies all over the universe and have a good repute in international oil market. Furthermore, these companies have rich experience and adulthood of operating in oil industry. Both these companies made determinations to put in Kazakhstan guided by certain influential factors, inputting new engineerings and inventions in production procedures, conveying direction on international degree, go throughing new information and new experience that contributes growing of Kazakhstan, provide employment for the local work force. All these ownership advantages were determined during the interviews. The tabular array 5.3 below demonstrates image of ownership advantages.

Table 5.3 Ownership advantages ( X – presence of advantage )

Chevron

BG Group

Brand name /fame

Ten

Ten

Size

Ten

Ten

Experience

Ten

Ten

Management

Ten

Ten

Technology

Ten

Ten

Information

Ten

Ten

It is obvious that both companies have advantages in all standards, chiefly because they entered Kazakh oil market already being experienced and successful, with its ain manner of concern, engineering, patents and inventions. For illustration Chevron has been actively engaged in “ conveying energy to people ” for more than 120 old ages. Company is elephantine in footings of capital and employee figure and operating in more than 90 states worldwide. When company entered Kazakhstan there was no any uncertainties refering it ‘s ‘ ownership advantages. Technology and inventions, experience and cognition that company conveying in Kazakhstan are legendary and alone. British gas besides one of the largest and celebrated companies in the international market. Company is runing since 1984, and in Kazakhstan if working more than 15 old ages. As we can see from the interview BG brought important figure of inventions and engineerings for host states oil market development, sharing its experience with local employees through preparations and societal undertakings. British Gas involved in geographic expedition of the universes biggest oil field and rather succeeded in it, as it still increasing production and development.

Location-specific advantages typically include market imperfectnesss or echt comparative advantages that suppose to pull FDI to specific locations and influence extend to which companies choose to turn up production outside of national boundaries. The chief location advantages of Kazakhstan are listed below in Table 5.4.

Table 5.4 Location advantages ( X – advantage )

Chevron

British Gas

Natural resources

Ten

Ten

Labor cost

Ten

Ten

Land Cost

Ten

Ten

Political state of affairs

Ten

Ten

Economic Situation

Ten

Ten

Social state of affairs

Ten

Ten

Incentives

Ten

Ten

Infrastructure

Ten

In general, both companies made their investing determination under assorted considerations, including their personal ends and involvements of each company. Harmonizing to the interview consequences the chief investing grounds that were of import incentives of FDI are low revenue enhancement government, immense resource capacity, stable political state of affairs.

Chevron besides agreed that land cost and labour cost are inexpensive comparing to other states. British Gas admitted that considerable advantage for them was stable economic growing of Kazakhstan. Although there were some hazards as, for illustration, undeveloped engineering of Kazakhstan, deficiency of experience in oil production and geographic expedition, foreign investors revealed that they can get the better of such jobs and considered them as undistinguished issues.

There were besides inquiries refering the deficit of qualified workers. As it was mentioned in interview consequences both companies noted that labour costs are inexpensive, but most of the clip non effectual. For work outing this job companies provided preparation classs, as they understood importance of engaging local employees. Local employees are more familiar with local civilization, linguistic communication and concern regulations of Kazakhstan.

Infrastructure of Kazakhstan seems had a small negative consequence, particularly jobs with oil transit. As it was mentioned oil from Kazakhstan can be transported merely by grapevine that is expensive and there is a deficiency of grapevine ‘s waies in Kazakhstan.

As a consequence it should be mentioned that all challenges and hazards were overcome and, what is more of import, investing should pay back all the costs in less than three old ages.

Internalization advantage derives from the troubles that can originate in composing governable and enforceable contracts with possible spouses that create an income which approximates the existent worth of marketed advantage. “ I ” advantages are benefits originating from bring forthing internally to the company, since they allow it to come over external markets and dealing costs.

The internationalisation procedure of international companies is normally characterized as an incremental procedure from a domestic base to high international market engagement due to limited resources and local cognition ( Johansson and Vahlne, 1977 ) . It has been suggested that international companies are besides more likely to take lower control entry manners due to investing hazards at the initial phase of internationalisation ( Palenzuela and Bobillo, 1999 ) .

A joint venture is a strategic confederation where two or more people or companies agree to lend goods, services and/or capital to a common commercial endeavor. Teaming up with other concerns in a joint venture allows to widen your selling range, more easy and clearly entree needed information and resources, construct credibleness with a peculiar mark market, entree new markets that would be unaccessible without the spouse.

Harmonizing to the interviews both companies formed joint venture with local spouses in Kazakhstan ( Table 5.5 ) . The chief ground of this is the fact that foreign companies did non hold adequate experience and cognition of operating in oil industry of Kazakhstan. It is easier to work with spouses, which can be utile to get the better of such troubles as: linguistic communication barrier, civilization barriers, cut down hazards. Companies needed counsel at the initial degrees. Companies started runing together with local spouses because of common involvements, chances to avoid competition with Kazakhstan ‘s place houses or other international endeavors. Furthermore, since 2002 there is jurisprudence and authoritiess scheme of the Republic of Kazakhstan harmonizing to which place national oil company should take part in all international oil undertaking in order control the whole procedure.

Table 5.5 Entry manner

Chevron

British Gas Group

Joint venture

Tengizchevroil:

– Chevron 50 %

– ExxonMobil 25 %

-Kazmunaigaz 20 %

– LukArco 5 %

Karachaganak:

– Chevron 20 %

– BG Group 32.5 %

– Lukoil 15 %

– Eni 32.5 %

CPC:

BG Group 2 %

– Russian Government 24

– Kazakh Government 19

– Chevron 15

– LukArco 12.50

– ExxonMobil 7.50

– Rosneft – Shell 7.50

– Omani Government 7

– Eni 2

– Oryx 1.75

– KPV 1.75

Karachaganak:

– BG Group 32.5 %

– Eni 32.5 %

– Chevron 20 %

– Lukoil 15 %

CPC:

-BG Group 2 %

– Russian Government 24

– Kazakh Government 19

– Chevron 15

– LukArco 12.50

– ExxonMobil 7.50

– Rosneft – Shell 7.50

– Omani Government 7

– Eni 2

– Oryx 1.75

– KPV 1.75

Impact OF CHEVRON AND BG GROUP ON OIL MARKET OF KAZAKHSTAN

Since the prostration of the USSR, Kazakhstan was able to do a immense advancement in footings of state ‘s stableness and attraction for foreign investings, so it is non a surprising fact that now Kazakhstan is recognized by the planetary community. When Chevron entered Kazakhstan in 1993 with the formation of the Tengizchevronoil it was the first major foreign house to come in oil market of the state. Since that clip the entire oil production from the field has increased significantly, to be exact by more than 4 times, from 60,000 barrels of oil extracted a twenty-four hours when the company was formatted till 260,000 presents.

The company brings to the budget of the state a important sum of about a billion of USD a twelvemonth. Company has the ability to lend a batch to the economic system of the Kazakhstan through such instruments as employees ‘ wages, purchase of local goods and services, revenue enhancements, duties and fees paid to both state-owned companies and authorities, every bit good as the new engineerings and patterns brought to the state by taking universe specializers.

Now, more than 83 per centum of the people working for Chevron in Kazakhstan are locals, comparing to merely 50 per centum back in 1993, and these employees are non merely the ordinary workers, more than 75 % of direction are besides Kazakhs. Now, Kazakhs are able to acquire the cherished first-hand experience from the best technological and concern patterns, they are able to work for the multi-billion dollar undertakings, and we could state that this experience is invaluable and for certain would assist them and fix for the productive employment in the hereafter.

Chevron is utilizing the most up-to-date equipment on its production units, every bit good as the latest methods and expertness ; this shows the great illustration to the local companies and promotes the fight among them.

The company besides pays a batch of attending to the support of the local community. For illustration in class of last 10 old ages Tengizchevroil contributed more than $ 600 million to fund societal undertakings in the Atyrau oblast for the community and employees.[ 3 ]Company actively support schools and different substructure undertakings ( new clinics, houses for homeless, etc. ) .

BG Group, every bit good as the Chevron was one of the first big foreign companies to put into Kazakhstan oil market. BG has been working really near with the authorities of Kazakhstan for all these old ages and was interested in the development of the state as much the state itself. Company is the joint operator of the Karachaganak condensate filed and a stockholder of the Caspian Pipeline Consortium, which is supplying the entree for the company to the universe gas market. The company actively back up the environmental plans in the part every bit good as participate in the development, together with the authorities, of the particular economic plans. Company is ready to lend to the procedures of development through capacity edifice and support – the instruments it has been utilizing since it came into the market.

Company provides the oil market with the long term, stable occupations by this showing the committedness to the state and its programs to go on to put into it.

CHEVRON, BG GROUP AND KAZAKHSTAN: FUTURE TOGETHER

Company sees its hereafter in the state instead booming, it is already known for certain that in the class of following old ages at that place will be immense investings into the Tengiz field to increase its production by 19 million dozenss per twelvemonth. It is estimated that the entire sum of the investings done would be arounf $ 2 billion.

Company would go on to actively back up the local communities of the geographic expedition countries and Chevron together with Kazakhstan would go on to turn together, as the Y did for the last 17 old ages, built on the history of the support, trust, success and equal partnership which would assist to develop both company and state in future.

The company strongly believes that the current good relationship with the authorities would enable it to convey more benefits to all parties interested – authorities, local people and company itself.

Natural gas would be in changeless demand all over the universe due to the economic and environmental benefits it is able to supply. So BG Groups position its together hereafter with Kazakhstan as instead comfortable. Company would go on to work in conformity with the long term ends set by the Kazakh ‘s Government and would back up the authorities in every possible manner. That would do the investings climate more attractive.

Company would run under Karachaganak installations till the 2038 and is be aftering to put to a great extent into uninterrupted development of the field. The completion of the undertaking with 13 wellsby the beginning of the 2011 would increase the expected export volumes to around 10mtpa and develop gross militias of 300 mmboe.[ 4 ]

Besides the Caspian Pipeline Consortium would do it possible to enlarge the market entree, with the immense potency of the Atyrau-Samara tie in, which is worked actively on presently. The completion of the undertaking is planned to be in 2013.

Company would go on to supply the efficiency and international expertness every bit good the support for labor forces and locals communities in future, to travel to the brilliant and comfortable hereafter together with Kazakhstan.

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