BG: Kazakhstan finishes up talks on major oil field
Azerbaijan, Baku, Sept. 1 /Trend/
Kazakhstan will soon finish talks with the foreign consortium developing the Karachaganak oil field, BG Group Senior Vice President for Central Mark Rollins told Trend in Astana.
"The negotiations end soon," he said. "I do not want to comment on the project's details, as the situation around Karachaganak has several controversial points for the two sides."
Rollins added that export duties are a major controversial issue.
"I want to note that the question of the stability of customs duties is very important to us," he said.
Earlier, Reuters reported that the Karachaganak Petroleum Operating B. V. consortium agreed to cede a 10-percent share in the massive energy project to the Kazakh government. The project includes developing the country's largest oil and gas field, Karachaganak.
Reuters reported that the parties have already agreed to transfer a five-percent stake in the project to the government if the authorities rescind earlier accusations of fraud against the consortium. The news agency added that the government will also receive the right to purchase a second five-percent share for cash.
The BG Group and Eni are the project's operators. Each company owns a 32.5-percent stake in Karachaganak Petroleum Operating B.V. Chevron owns a 20-percent stake, and a 15-percent share is also owned by Lukoil.
Previously, Kazakhstan demanded $1.3 billion from BG and Eni in an international arbitration court. The government filed a criminal case against the consortium's management, accusing its leadership of fraud.
According to experts, Karachaganak has over 1.2 billion tons of oil and 1.35 trillion cubic meters of gas. About 49 percent of Kazakhstan's gas and 18 percent of the country's oil are produced on the field.