Kazakhstan, Astana, Oct. 12 / Trend A.Bayjanov /
The Kazakh National Company KazMunaiGaz (KMG) covers the cost of servicing its stake in the Kashagan project through foreign borrowings, KazEnergy Association Chairman Timur Kulibayev told Trend .
"The KMG has become a full member of the Kashagan project with a 16.8-percent share. The company covers the cost of its share in the project by borrowing in foreign markets, which are taken under the KMG's guarantee," he said.
As previously reported, Kazakhstan's share in the North Caspian project (Kashagan) raised to 16.8 percent, which also lead to increase of the financial cost to the national company.
Regarding the Tengiz project, Kulibayev said the work on the expansion of the field has already been completed. This is a valid project and in 2010 the volume of oil production from this field will be brought up to 25 million tons a year, he added. .
According to him, Kazakhstan's share in this project was funded and serviced by external borrowing.
"The project shows outstanding results and the shareholders get good dividends, so we do not see difficulties with financing. The project funds itself," Kulibayev said.
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