Kazakhstan

Energy is the leading economic sector. Production of crude oil and natural gas condensate in Kazakhstan amounted to 51.2 million tons in 2003, which was 8.6% more than in 2002. Kazakhstan raised oil and gas condensate exports to 44.3 million tons in 2003, 13% higher than in 2002.

Gas production in Kazakhstan in 2003 amounted to 13.9 billion cubic meters (491 billion cu. ft), up 22.7% compared to 2002, including natural gas production of 7.3 billion cubic meters (258 billion cu. ft); Kazakhstan holds about 4 billion tons of proven recoverable oil reserves and 2,000 cubic kilometers (480 cu mi) of gas.

Industry analysts believe that planned expansion of oil production, coupled with the development of new fields, will enable the country to produce as much as 3 million barrels (477,000 m³) per day by 2015, lifting Kazakhstan into the ranks of the world's top 10 oil-producing nations.

Kazakhstan's 2003 oil exports were valued at more than $7 billion, representing 65% of overall exports and 24% of the GDP. Major oil and gas fields and their recoverable oil reserves are Tengiz with 7 billion barrels (1.1 km³); Karachaganak with 8 billion barrels (1.3 km³) and 1,350 km³ of natural gas); and Kashagan with 7 to 9 billion barrels (1.1 to 1.4 km³).

Kazakhstan instituted an ambitious pension reform program in 1998. As of January 1, 2005, the pension assets were about $4.1 billion. There are 16 saving pension funds in the republic. The State Accumulating Pension Fund, the only state-owned fund, could be privatized as early as 2006.

The country's unified financial regulatory agency oversees and regulates the pension funds. The pension funds' growing demand for quality investment outlets triggered rapid development of the debt securities market. Pension fund capital is being invested almost exclusively in corporate and government bonds, including Government of Kazakhstan Eurobonds.

The Kazakhstani banking system is developing rapidly. The banking system's capitalization now exceeds $1 billion. The National Bank has introduced deposit insurance in its campaign to strengthen the banking sector. Several major foreign banks have branches in Kazakhstan, including ABN AMRO, Citibank, and HSBC. Raiffeisen Zentralbank and UniCredit have both recently entered the Kazakhstan's financial services market through acquisitions and stake-building.