Monday, January 22, 2007

More Trouble in Kazakh Oil Country: Foreign Investment and Foreign Laborers being Re-thought?

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Kazakh workers striking at an Agip construction site late last week

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Some of the increasing workforce of Chinese oil companies active in Kazakhstan

Those who have been working for foreign oil companies in western Kazakhstan for some time are well aware of the fact that there will come a time when Kazakhstan wants to take total control over its own resources. While there have long been waves of dissatisfaction in Kazakhstan with regards to foreign investment in the oil sector, the role of foreigners in the oil extraction business of western Kazakhstan is coming under particularly close scrutiny as of late.

One of the big issues in the last year has related to the role of foreign sub-contractors in western Kazakhstan. In October, Kazakh workers attacked Turkish supervisory contractors on a construction site at the Tengiz oil field. While the conflict eventually was resolved, continual comments to my website suggest that there is still animosity towards Turkish and other foreign workers among local employees. This past week, for example, a similar issue flared up on an Agip construction site also run by Turkish contractors at Karabatan. Unhappy with their wages and their treatment at the hands of Turkish supervisors, some 200 Kazakh workers went on strike, but Agip moved to quickly mitigate the dispute by raising wages. While these conflicts were mitigated, there are still lingering problems between Kazakh workers and foreign supervisors in the region, especially when the supervisors are from sub-contracting companies and from developing countries. After fifteen years of independence, the workers of Kazakhstan are becoming increasingly disgruntled at the higher wages and alleged arrogance of foreigners working in the oil sector, especially when those workers are from developing countries.

This issue, however, is obviously of more concern to Kazakh workers in western Kazakhstan than it is to the Kazakh government. The government remains most concerned about the bigger question of asset ownership. As indication of that concern, the new government in Astana has just amended the law “On Mineral Wealth” so as to institute a two-year moratorium on the re-sale of licenses to develop oil deposits. This move is meant to send a clear sign that Astana wants to keep their natural resource assets in check and curb quick sell-outs that have been rampant in recent years. As Reuters suggests, this move may be especially focused on controlling the rapid increase of Chinese oil companies’ assets in the region. Still, it is an issue that will affect other foreign companies as well.

Overall, it would be wrong to suggest that these various events add up to the imminent demise of foreign oil companies in Kazakhstan. That would be highly unlikely before Kazakhstan sees the long-awaited returns on the Kashagan oil field scheduled to begin pumping oil in 2009. But, they do suggest that foreign oil companies will need to be watching developments in Astana more closely. Furthermore, while the tension between Kazakh workers and foreign sub-contractors in the region has yet to be exploited by the nascent political class in Kazakhstan, it is a populist issue that could benefit various political forces in the country, especially in the context of the country’s quiet intra-elite competition for the right to take over the reigns once President Nazarbayev steps down. If such political forces begin to look to workers in western Kazakhstan for support, that could spell even more troubles for the various foreign oil companies active in the west of the country.

77 Comments:

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Anonymous thailand real estate said...

Kazakhstan's oil should belong to the people of Kazakhstan and not to the foreign oil companies. Yes they do provide employment and income for the government, but how much of this did they pocketed themselves?

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Anonymous RES said...

It has been rightly informed by you that there is more trouble in Kazakh oil country. The information is useful

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6:17 AM  
Blogger Arjun Simkhada said...

Trekking in Nepal…Family Adventure style
The towering Himalayas are, to many travellers’ minds, the chief reason for visiting Nepal. The country tumbles steeply down from the 800km stretch of the Himalayan battlements that forms its northern border, and can claim no fewer than eight of the world’s ten highest peaks – including, of course, Everest, the highest of them all. The mountains are more than just physically astonishing, however. The cultures of highland-dwelling Nepalese peoples are rich and fascinating, and the relaxed, companionable spirit of trekking life is an attraction in itself. The Himalayas have long exerted a powerful spiritual pull, too. In Hindu mythology, the mountains are where gods go to contemplate, while the Sherpas and other mountain peoples hold certain peaks to be the very embodiment of deities.
Most visitors to mountain areas stick to a few well-established trekking routes. They have good reasons for doing so: the classic trails of the Everest region with its famous trails like Everest Base camp trek and the 3 high passes are both mind blowing ventures and highly popular in the world. And Annapurna regions are so popular because they offer close-up views of the very highest peaks; this includes Annapurna 1 & 2, fishtail peak and Ganesh Himal trek. Famous treks like the Ghorepani Poon Hill Trek, Annapurna Base camp trek & the Annapurna Circuit trek are some of the most famous on earth. Dramatic scenery and fascinating local cultures are most known in this area. Lodges on the main trails – some as sophisticated as ski chalets, these days – make it possible to go without carrying a lot of gear or learning Nepali, and without spending too much money, either. While trekking, you’ll likely eat and sleep for $20–30 a day. For those who put a high priority on getting away from it all, there are plenty of less-developed routes, of course, and simply going out of season or taking a side-route off the main trail makes a huge difference.
The Helambu and Langtang regions are less striking but conveniently close to Kathmandu, attracting a little fewer than ten percent of trekkers. The Langtang valley trek & the Ganja-La pass are known trails in this area. This leaves vast areas of eastern and far western Nepal relatively untrodden by visitors. To hike in these areas you’ll need either to get set for camping and carry your own supplies, and live like a local, or pay to join an organized trek with tents and accept the compromises that go along with that.
With a good operator, you can anywhere in the wild. A Great Himalayan Trail now runs the length of highland Nepal – though it will be for some time, if ever, before such a route will be serviced by lodges.
Treks in remote far eastern and far western Nepal are mostly restricted to two kinds of globe trotters, both adventurous in their own way. The majority come on organized camping treks with agencies – in fact, this is obligatory for those areas that require a permit. The minority are independent trekkers prepared either to carry tents and food or negotiate with porters, or to seek food and lodging in local homes and basic lodges. Some great camping outdoors include the Manaslu circuit Trek, Upper Mustang trek the Dhaulagiri circuit, Rara lake trek and the great Kangchenjunga trek, both north and south.

3:18 AM  
Blogger Nepal High Trek Ptv. Ltd. said...


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10:59 PM  
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11:01 PM  
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11:03 PM  
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1:54 AM  
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1:55 AM  
Blogger Nepal Wide Adventure said...


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1:56 AM  
Blogger Nepal Wide Adventure said...



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1:56 AM  
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1:56 AM  
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1:57 AM  
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4:40 AM  
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4:45 AM  
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4:47 AM  
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4:51 AM  
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4:53 AM  
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4:58 AM  
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1:59 AM  
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2:06 AM  
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2:15 AM  
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2:17 AM  
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2:33 AM  
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5:07 AM  
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5:08 AM  
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5:08 AM  
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5:09 AM  
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5:09 AM  
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5:10 AM  
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5:10 AM  
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12:24 AM  
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12:24 AM  
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12:35 AM  
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12:36 AM  
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12:41 AM  
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12:42 AM  
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12:46 AM  
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4:45 AM  
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4:49 AM  
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4:51 AM  
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4:53 AM  
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4:55 AM  
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5:00 AM  
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5:03 AM  
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3:11 AM  
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3:17 AM  
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3:18 AM  
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3:22 AM  
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3:22 AM  
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3:25 AM  
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3:26 AM  
Blogger Mount Face Nepal said...

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3:41 AM  

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