Investing in diversification: oil industry of Kazakhstan

    Sagat S. Makhanov Affiliation
    ; Urpash Zh. Shalbolova   Affiliation
    ; Yevgeniy G. Kim Affiliation


The article analyzes the growth of opportunities for the production of petrochemical products in the Republic of Kazakhstan. The article analyzes the dynamics of global demand for basic petrochemical products over the past 15 years. The aim of the article is to represent the effectiveness of the project on organizing the production of petrochemical products – polypropylene. The objective of the work is to highlight the characteristics of the possibilities of polypropylene production in Kazakhstan (availability of capacities, raw materials, and transport accessibility to world markets). The ways of using polypropylene in the national economy are substantiated. The analysis of the world demand for polypropylene, the structure of its consumption and production in the context of world economic regions, is considered the main world importers and exporters of polypropylene. The effectiveness of the implementation of the investment project to organize the production of polypropylene in Kazakhstan is presented in the form of a predictive analysis of the supply of marketable products to the markets of individual countries: Turkey, Western, Southern and Eastern Europe, China, the Russian Federation. The article also describes the strengths and weaknesses, potential opportunities and risks of the project for the production, sale and export of Kazakhstani polypropylene.

Keyword : petrochemical products, polypropylene, production and consumption, gas, consumer, global demand

How to Cite
Makhanov, S. S., Shalbolova, U. Z., & Kim, Y. G. (2023). Investing in diversification: oil industry of Kazakhstan. Business: Theory and Practice, 24(2), 325–333.
Published in Issue
Aug 8, 2023
Abstract Views
PDF Downloads
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.


Anderson, K., Capannelli, G., Ginting, E., & Taniguchi, K. (Eds.). (2018). Kazakhstan: Accelerating economic diversification. Asian Development Bank.

Andreyev, A. F., Samokhvalova, Ye. P., Pelmeneva, A. A., & Burykina, Ye. V. (2014). Fundamentals of economics and organization of oil and gas production. Academy.

Appazov, N. O., Seitzhanov, S. S., Zhunissov, A. T., & Narmanova, R. A. (2017). Synthesis of cyclohexyl isovalerate by carbonylation of isobutylene with carbon monoxide and cyclohexanol in the presence of Pd(PPh3)4-PPh3-TsOH and its antimicrobial activity. Russian Journal of Organic Chemistry, 53(10), 1596–1597.

Bekbauov, B., Berdyshev, A., & Baishemirov, Z. (2016). Numerical simulation of chemical enhanced oil recovery processes. CEUR Workshop Proceedings, 1623, 664–676.

Chen, Y., Chen, H., & Guo, Z. (2019). Present situation and trend analysis of propylene industry. Petroleum Refinery Engineering, 49(12), 1–5.

Coggona, M. M., Gkatzelis, G. I., McDonald, B. C., Gilman, J. B., Schwantes, R. H., Abuhassan, N. …, & Warneke, C. (2021). Volatile chemical product emissions enhance ozone and modulate urban chemistry. Proceedings of the National Academy of Sciences of the United States of America, 118(32), 34–45.

Dunayev, V. F., Shpakov, V. A., Yepifanova, N. P., Komarova, L. A., Lyndin, V. N., Pavlinich, E. A., Pelmenova, A. A., Vostokova, S. I., & Zubkova, T. S. (2016). Economics of enterprises (organizations) of the oil and gas industry. TsentrLitNefteGaz.

Francis Prashanth, P., Shravani, B., Vinu, R., Lavanya, M., & Ramesh Prabu, V. (2021). Production of diesel range hydrocarbons from crude oil sludge via microwave-assisted pyrolysis and catalytic upgradation. Process Safety and Environmental Protection, 146, 383–395.

Government of the Republic of Kazakhstan. (2019). Resolution of the Government of the Republic of Kazakhstan No. 1050. “On approval of the State program of industrial and innovative development of the Republic of Kazakhstan for 2020–2025 (changes as of December 31, 2019)”.

Gromov, A. I., & Titov, A. V. (2020a). Influence of the COVID-19 pandemic on the world oil market.

Gromov, A. I., & Titov, A. V. (2020b). Long-lasting effects of the COVID-19 pandemic. Oil and Gas Vertical, 15, 7–19.

Humbatova, S. I., Garayev, A. I., Tanriverdiev, S. M., & Hajiyev, N. G. (2019). Analysis of the oil, price and currency factor of economic growth in Azerbaijan. Entrepreneurship and Sustainability, 6(3), 1335–1353.

Igaliyeva, L., Yegemberdiyeva, S., Utepkaliyeva, K., & Bakirbekova, A. (2020). Development of economic mechanism for ensuring ecological security in Kazakhstan. International Journal of Energy Economics and Policy, 10(4), 240–250.

Kondratyev, V. B. (2019). Global oil and gas market: Main trends. Mining, 148(6), 30–35.

Kondratyev, V. B. (2020). Coranovirus and mining. Mining Industry, 5, 10–18.

Ministry of Justice of the Republic of Kazakhstan. (2004). Decree of the Government of the Republic of Kazakhstan No. 101 “On approval of the Program for the development of the petrochemical industry of the Republic of Kazakhstan for 2008–2013”.

Ministry of Justice of the Republic of Kazakhstan. (2014). Decree of the President of the Republic of Kazakhstan No. 874 “On approval of the State program of industrial and innovative development of the Republic of Kazakhstan for 2015–2019 and on making additions to the Decree of the President of the Republic of Kazakhstan dated March 19, 2010 No. 957 “On approval of the List of state programs”.

Nurazkhanov, A. (2020). Post-COVID-19 oil & gas: Payback hour or new opportunity?

Ozdoyev, S. M., Abduev, N. S., Popov, V. A., Tileuberdi, N., & Dong, M. H. (2019). Common and differing geological features of the Alakol and Chinese Dzungarian troughs in view of their oil-and-gas prospects. News of the National Academy of Sciences of the Republic of Kazakhstan, Series of Geology and Technical Sciences, 4(436), 6–11.

Park, K.-B., Jeong, Y.-S., Guzelciftci, B., & Kim, J.-S. (2020). Two-stage pyrolysis of polystyrene: Pyrolysis oil as a source of fuels or benzene, toluene, ethylbenzene, and xylenes. Applied Energy, 259, 12–25.

Razakova, A. A., Shalbolova, U. Zh., & Yelpanova, M. A. (2019). Efficiency of the investment project solution for diversification in the oil and gas industry. Academy of Strategic Management Journal, 18(6).

Shalbolova, U. Zh., Narmanova, R. A., Tlessova, E. B., & Ryskulova, Zh. O. (2017). Economic efficiency of cold oil bituminous mastic production. Espacios, 38(46).

Sherwood, J. (2020). The significance of biomass in a circular economy. Bioresource Technology, 300, 11–34.

Sheveleva, A. V., & Akiyeva, L. B. (2016). Diversification of activities of oil and gas companies amid falling oil prices and the introduction of economic sanctions. Bulletin of MGIMO University, 6(51), 144–151.

Sokolov, N. A., & Larin, S. N. (2018). Perspectives of the development of the oil and gas sector of the Russian economy in the conditions of implement replacement program implementation. Bulletin of Science and Practice (Scientific Journal), 4(1), 191–203.

Stepanenko, I. (2020). Trends of the oil and gas industry, priority areas of development. Moscow Economic Journal, 1, 518–524.

Suerbaev, H. A., Chepajkin, E. G., Dzhiembaev, B. Z., Appazov, N. O., & Abyzbekova, G. M. (2007). Catalytic hydroxycarbonylation of isobutylene with carbon monoxide and polyhydric alcohols in the presence of the Pd(acac)2-PPh3-TsOH system. Petroleum Chemistry, 47(5), 345–347.

Suerbaev, K. A., Chepaikin, E. G., Appazov, N. O., & Dzhiembaev, B. Z. (2012). Hydroalkoxycarbonylation of isobutylene with polyhydric alcohols in the presence of catalytic systems based on palladium compounds and tertiary phosphines. Petroleum Chemistry, 52(3), 189–193.

Tcharo, H., Vorobyev, A. E., & Vorobyev, K. A. (2018). Digitalization of the oil industry: Basic approaches and rationale for “intelligent” technologies. The Eurasian Scientific Journal, 10(2).

Volkova, A. V. (2020). Large-scale polymer market. National Research University Higher School of Economics.

Yang, J. (2018). Analysis of sustainable development of natural gas market in China. Natural Gas Industry, 5(6), 644–651.

Yegorov, O. I., & Chigarkina, O. A. (2015). Development priorities for oil and gas processing in Kazakhstan. Oil and Gas, 4(88), 41–50.