Kazakhstan’s extractive sector plays an important role in the country’s development, with revenues constituting more than half of the state budget. It has the largest recoverable crude oil reserves in Central Asia and its current oil production is approximately 1.73 million barrels a day. With much of the government revenue coming from the extractive sector, Kazakhstan was among the first Central Asian countries to announce its commitment to the EITI in 2005.
70% of hydrocarbon reserves are concentrated in the west of Kazakhstan. One of the biggest oil fields – Kashagan – started its oil production in October 2016. After eight years of delay, sixteen years of development and more than USD 50 billion of investment from NCSPSA (the North Caspian Sea Production Sharing Agreement) Consortium, operated by NCOC, the Kashagan oil field production, together with Tengiz and Karachaganak, is expected to be one of the main contributors to economic growth in Kazakhstan in the upcoming years.
Mining companies form about 35% of state revenues and 3.35% from the entire employed population are employed in the extractive sector.