Fitch: State role boon for Kazakh oil and gas

Fitch Ratings said an increased state role in the Kazakh oil and gas industry looks unlikely to have implications for the ratings of companies operating in this sector in the short-to-medium-term.

On the positive side, an increase of the state role could underpin greater stability and certainty for all the players in the sector, Fitch said. It also could set clearer rules of the game, albeit tightened, and provide more clarity and coherence pertaining to industry regulation, the agency said.

Fitch noted that National Co. KazMunaiGaz (rated BBB with negative outlook) is well placed to capitalize on its close ties to the government and gain most of the benefits from the state reasserting control over the oil and gas industry amid the first right of refusal on acquisition of any on-shore projects in Kazakhstan, the agency said.

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