Kazakh oil services companies ask for tax holidays in 2020

Nur-Sultan, March 20 – Neftegaz.RU. The situation in the world oil market and the collapse in oil prices by almost 40% will have a very serious impact to Kazakh oil market, especially in the oil services market of Kazakhstan, Centrasia Group Chairman Almas Kudaibergen told New Europe.

Oilfield services companies in Kazakhstan, concentrated mainly in the western regions of the country, will pay less taxes this year. Respectively, profits in regional and republican budgets will be reduced, Kudaibergen said.

According to him, due to global efforts of different countries’ governments to combat the spread of coronavirus, there will be a sharp fall in oil demand.

“Given the difficult economic situation and the daily epidemiological situation in Kazakhstan, on behalf of more than 2,000 oilfield services companies in Kazakhstan, I ask the country’s authorities to consider introducing tax holidays for the oilfield services sector. Such a measure will allow many companies to survive under the prevailing conditions,” Kudaibergen told New Europe.

He noted that more than 500,000 people depend on oilfield services companies – about 200,000 employees and their family members.

“In recent years, oilfield services companies have made significant progress in increasing Kazakh content in the oil and gas industry. If now Kazakhstan oil service companies are not supported during the crisis, then the local content in the industry will be discarded several years ago. And after the end of the crisis, which is sure to end, like any other crisis, foreign oilfield services companies will again come to the Kazakhstan market, because the governments of their countries have supported them,” Kudaibergen said.

Author: Kulpash Konyrova