Energy, EU – Baltic States, Forum, Legislation

The participants of the X KAZENERGY Eurasian Forum acknowledge the need for coordinated and sustainable development of the international oil&gas and energy partnership, fully taking into account the interests and views of all countries of the Eurasian continent; consider the strong influence of the oil, gas and power sector on the economic development of the Republic of Kazakhstan, and finally express the need to solve the following issues:

1. The upcoming intensive level of competition between the oil and gas rich countries to attract investments for the exploration and production activities should enable them to adjust their approach to foreign investment according to the shifts in the competitive landscape of the global oil and gas industry.

2. Overcoming dangerous trends that threaten global energy security is the primary goal of states – owners of fuel and energy resources.

3. The global energy policy in the short term will be aimed at further improving energy security, secure supplies, tariff reductions, diversification of energy sources, reduction of power generation and supply costs.

4. Current trends show that, in the long term, oil will come on stream at a higher price. Special responsibility rests with key oil producing countries whose harmonized policy affects the oil market's ability to adequately restore balance between demand and supply.

5. In the long term, the main driver of oil demand growth will be the Asia-Pacific region. For Europe, Kazakhstan remains an important crude oil supplier due to the established practice of transportation and supply at fair price. Oil refining in European countries will remain stable, which means that demand for crude oil imports will grow.   

6. To develop transport and transit potential of the Republic of Kazakhstan, taking into consideration the changing geopolitical conditions and energy configurations in the Eurasian continent.

7. The member countries of the Eurasian Economic Community and Kazakhstan, as one of its initiators, should make every effort for timely implementation of plans to create a common electricity market, as well as a common gas, oil and petroleum products market.

Creating common energy markets will enable the EAEU to assert itself as one of major players in the “new global map” of the energy market. The energy potential and positive experience of the Union are welcomed by the international community.

8. Kazakhstan can promote the development of projects with participation of foreign investors offering competitive incentives for taxation, state regulation, and other partnerships with investors.

9. Since Kazakhstan has significant oil and gas reserves and great potential for discovery of new reserves, the Forum participants have drawn up a list of priority issues of exploration to be discussed by the Government of the Republic of Kazakhstan, and its decisions would affect further economic development of the country.

10. The 2015 National Energy Report confirms that the overall reliability and stability of growth of oil production in the Republic of Kazakhstan depends on development of not only large, but also small-scale exploration and production projects. Independent participants can play a vital and positive role in the oil and gas sector of the Republic of Kazakhstan due to more intense re-development of mature oil and gas fields and creative approach to the development of new reserves (including unconventional oil). International practices show that startups and medium-sized businesses tend to become the drivers of innovative development in the energy sector.

11. The oil and gas services industry of Kazakhstan grows dynamically, but it requires broader technical cooperation and expansion of the scope of activity. To raise the profile of the Republic of Kazakhstan in the global oil and gas services sector, it is necessary to continue developing skills required for creating and using new high-tech equipment, as well as to develop relevant supporting sectors and related infrastructure, which are necessary to implement new generation projects.

12. It is necessary to continue the development of the downstream activities, particularly, rapid modernization of existing facilities and construction of modern refineries and petrochemical complexes. In turn, applications of innovative information and communication technologies would contribute to the development of so-called “smart energy”.

13. The efforts to develop new alternative directions in the energy sector should be intensified, taking into consideration a set of measures for creation of favorable investment climate in the power sector.

14. Considering the fact that GDP’s energy intensity in Kazakhstan remains higher than the average in OECD countries, in order to further enhance competitiveness of the economy and approaching the standards of the European countries, it is necessary to intensify the implementation of the state energy saving and efficiency programs.

15. Noting the significant influence of energy activities on the environment, and while preserving the potential of non-renewable energy resources for future generations, to use renewable energy sources for energy balance, to improve the environment pollution monitoring systems at energy enterprises, to accelerate transition to clean technologies and production of fuel by modern standards. In this context, it is important that the local executive authorities and the community be involved in the development of renewable energy.