Insight
Kazakhstan's new Tax and Subsoil Use Codes: a brighter future?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Kazakhstan has introduced its most significant tax and regulatory reforms for oil and gas since 2009-10. A new Tax Code took effect from January 2018 and a new Subsoil Use Code will follow from late June. The attention-grabbing change is a shift away from revenue-based tax terms for Kazakh oil and gas. A largely profit-based fiscal system is now available for offshore and deep onshore developments under the concession regime. There are no new tax breaks for mature fields. We evaluate five key questions surrounding the reforms, which will help shape the long-term outlook for the Kazakh upstream sector.
Table of contents
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What are the changes?
- Tax Code introduces new profit-based terms
- But some fiscal issues are largely unaddressed
- Subsoil Use Code optimises legislation
- Why did Kazakhstan need to improve its terms?
-
What is the economic impact of fiscal changes?
- Alternative subsoil tax improves the commercial proposition for offshore and deep onshore projects
-
How competitive can Kazakhstan become?
- Pre-tax economics must improve
- AST reduces government share to competitive level
- Kazakhstan joins debate on fiscal 'fair share'
- What else should Kazakhstan do?
- Appendix
Tables and charts
This report includes the following images and tables:
- Kazakhstan oil and condensate production, 2010-35
- Kazakhstan onshore E&A drilling, 2010-18
- Kazakhstan offshore E&A drilling, 2000-17
- Overview: alternative subsoil tax and standard concession terms
- Kazakhstan's new Tax Code: key changes for oil and gas
- Kazakhstan's new Subsoil Use Code: key changes for oil and gas
- Model field economics (NPV10): deep onshore
- Model field economics (NPV10): offshore (shelf)
- Model field economics (NPV15): deep onshore
- Model field economics (NPV15): offshore (shelf)
- Deep onshore field: standard terms
- Deep onshore field: AST terms
- 4 more item(s)...
What's included
This report contains:
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