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.

20 Comments:

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10:39 PM  
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?

12:55 AM  
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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Blogger Unknown said...

15 Day Annapurna Circuit Trek from Kathmandu


Highlights:
Incredible trek from low land to highland
Manang village, the Tibetan settlement
Magnificent view from Throng La passes (5416m)
The pilgrimage town of Muktinath
Short but breathtaking flight from Jomsom to Pokhara
This two weeks trek in the Annapurna region is specially designed considering those individuals who have only limited time in Nepal and are very interested to explore this area by crossing Thorung La Pass (5416m.).
Description:
Trekking in the Annapurna region is the best approach to have a close look at the formation of mysterious nature's wonders which have facilitated this region to be highly concentrated trekking spot amongst the world since 1977 when it was first time opened for the foreigners. This region has been associated with the name of massive Annapurna peak - one among eight world's highest peaks of the world. This highly praised and spectacular trekking route makes your traveling a different experience ever in lifetime. More than anything else, the great deal of traditional culture and the unique hospitality of the native people can definitely help to erase your tired mind in course of your great journey. This two weeks trek in the Annapurna region is specially designed considering those individual who have got only few times in Nepal and very interested to explore this area by crossing Thorung La Pass (5416m.). In this way, this short but exclusive trek program is basically targeted to enjoy the Himalayan spirit through unique adventure as well as within short period of time.

This magnificent trek leads you to the fine village inhabited by a wide diversity of people from different ethnic groups, offering spectacular and majestic view of the white Himalayas. As it continues to the north of the main Himalayan range on to the high and dry Tibetan Plateau, the scenery is equally breathtaking.

Muktinath - the most sacred Hindu temple stands as the most remarkable feature of this trek offering the astonishing view of the snow - capped mountains from the top. The eye appealing view of around surrounding is beyond one's thought to enable you to enjoy never ending blissful experience in peace and tranquility.

Jomsom at an altitude of 2713m is the ultimate destination of this trek where our hiking excursion gets an end. A night rest at this point is more praiseworthy in a sense that the countryside view settle down your all tiredness both mentally and physically. The next day, a 20 minutes scenic flight takes you another picturesque town - Pokhara which undoubtedly offers many things of tourists alike within a very limited area.

Anyone with sound health can join this trek since this trek has been set on the basis of slow hike pace to get full acclimatization with a view to enable our clients to get ultimate fun of trekking in this Himalayan paradise.

Annapurna Circuit trekking day by days Itinerary

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http://nepalguideinfo.com/annapurna-circuit-trek/

http://www.hikehimalayas.com/trekking-in-nepal/trekking-region/everest-region/everest-base-camp.htm
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12:04 AM  
Blogger Unknown said...


Light Trekking route as
Langtang Gosaikunda Trek,
Everest Gokyo Lakeand
Manaslu Tsum Valley trek in Nepal.

4:53 AM  
Blogger Unknown said...


One of the best top selling peak climbing in Nepal as
Island Peak climbing,
Mera Peak Climbing and
Lobuche Peak climbing.

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Blogger Krishna Kumar Chalise said...

Yeah! There is more trouble in Kazakh Oil Country.
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Anonymous Himalayan sound healing trip said...

Trek to the high Mountain with local music and the sound of the peaceful singing bowl sound healing. Travelers might be amazed to know that such types of trekking in Nepal Himalayas exist. The main flow of visitors to Nepal Himalayas is mainly for trekking towards various exciting exotic destinations.

7:50 AM  
Anonymous Langtang Valley Trek said...

Langtang valley trekking explores the spectacular Himalayan region in the northern side of Kathmandu city of central Nepal, where jaw-dropping mountain vistas surround all around the trip.

7:52 AM  
Anonymous Manaslu Circuit Trek said...

Manaslu Circuit Trek is a strenuous trek in the Manaslu region of Nepal. The route was opened in 1991 AD as a restricted area trekking that requires a special trek permit and its recognition got a higher degree of significance since 2010 after tea houses were built. It made the trip comfortable and exciting. Walking through the ethnic settlements, raging rivers, crossing shaky bridges, you eventually cross the technical Larke pass (5160m).

7:53 AM  
Anonymous Everest Three Passes Trek said...

The Everest region is home to the amazing mountainous landscape and is known for a wide variety of mountaineering, trekking, and hiking destinations. Normally tourists tend to choose a lighter and easier way to explore this Himalayan region. However, those who are planning a challenging hiking trip must explore this adventure destination. The Everest Three Passes Trek is one of the best high-altitude trekking routes in the world. As the name suggests this hiking route comprises three major high mountain passes above the 5000-meter mark, namely Kong Ma La 5535m, Cho La 5420m, and Renjo La 5345m.

7:55 AM  
Anonymous Island Peak Climbing said...

Island Peak (6189m) is also known as Imja Tse, which is situated in the Everest region on the top of Chukung Glacier between the Ama Dablam and Lhotse Himalayan range. It is a gorgeous and comparatively less challenging NMA (Nepal Mountaineering Association) authorized trekking peak.

7:56 AM  
Anonymous Everest Base Camp Trek said...

The Mount Everest base camp trek trail is located in the Sagarmatha National Park enlisted in the World Heritage Sites by UNESCO. This amazing hiking trip to the base camp of the world’s tallest mountain peak is a must-include vacation trip on any adventure seeker's bucket list.

7:57 AM  
Anonymous Khopra Trek said...

Khopra Ridge Community Trek is an off-the-beaten hiking trail in the Annapurna region. It is an underrated trekking destination, as not a lot of travelers and trekkers are aware of this majestic trail. Panoramic Mountain views, Khayer Lake, Rhododendron forests, waterfalls, hilly gorges, and community villages inhabited by the majority of Magar ethnic tribes are the major features of this excursion.

7:59 AM  
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