Volume of Priority Payment Increases in Kashagan Oil Project
Kazakhstan, Astana, 31 October / corr Trend K.Konirova / The Kazakh Ministry of Energy and Mineral Resources and KazMunaygaz company informed about successful completion of final negotiations with North Caspian consortium on detailed negotiations to develop Kashagan field in the future.
"We agreed to increase the priority payment, which was connected with new, increasing oil price," Sayat Minbayev, Kazakh minister of energy, said at a press-conference.
"In 2008, we all observed the unexampled increase of oil prices that reflected the cost of Kashagan project" he said.
The rate of priority payment at oil price totaled 3.5%, with the oil price of $45 per bbl, and 5%, with the oil price of $65 per bbl. in memorandums, which were concluded earlier.
The contract, which was concluded today, indicates that priority payment will increase from 5% by 12.5% with the oil price from $85 to $185 per bbl.
"It means that Kazakhstan will receive large sums," minister said.
The recoverable oil resources of Kashagan are estimated at 7bln or 9bln barrels.
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