Yerlan Akkenzhenov, Kazakhstan’s energy minister, said he expects global oil prices to remain around $80 per barrel but noted that a significant increase could bring major additional revenue to the country.
Speaking about possible market scenarios, Akkenzhenov said that if oil prices reach $100 per barrel, Kazakhstan could receive about $20 billion in extra revenue for its national budget and the National Fund of Kazakhstan. If prices reach $120 per barrel, the additional revenue could rise to approximately $37 billion.
Read also: In major policy pivot, Kazakh oil fund shifts billions away from foreign currencies.
He said that amount would be comparable to the cost of building two oil refineries or financing a nuclear power plant, which has an estimated preliminary price tag of about $15 billion.
Middle East conflict could affect prices
According to the minister, the likelihood of higher oil prices will largely depend on how the military conflict in the Middle East develops.
Read also: How the Israel-US-Iran conflict could impact Kazakhstan.
Kazakhstan’s current state budget is based on a projected price of $60 per barrel for Brent crude oil, a benchmark used in global oil markets.
