Fitch: Growth with risks for Kazakhstan oil industry

Fitch Ratings said it said in a special report that the Kazakhstani oil and gas industry is poised for strong growth, albeit with certain operational and financial risks inherent in its development.

Although Kazakh oil and gas companies are well-placed to transform themselves into medium-sized players, their success and future actions will depend on their ability to implement expansion projects without severe delays and cost overruns, Fitch said, and to finance anticipated intensive investment programs without jeopardizing their credit profiles.

Fitch expects oil production in Kazakhstan to expand at a compound annual growth rate of 5.7% through 2015.

The risk to this forecast stems from uncertainties inherent in the Kashagan project development, the agency said. The country is land-locked, therefore its oil and gas industry is dependent on a construction of pipeline infrastructure, Fitch said.

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