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U.S. concerned over revision of oil contracts in Kazakhstan

Oil&Gas Materials 5 January 2011 20:22
The U.S. government is concerned over the revision of the long-term contracts on oil projects in Kazakhstan, the U.S. ambassador to Kazakhstan Richard Hoagland said to a press conference in Astana.
U.S. concerned over revision of oil contracts in Kazakhstan

Kazakhstan, Astana, Jan. 5 /Trend, A.Maratov/

The U.S. government is concerned over the revision of the long-term contracts on oil projects in Kazakhstan, the U.S. ambassador to Kazakhstan Richard Hoagland said to a press conference in Astana.

"I always emphasize that for us it is extremely important that the U.S. companies would follow the laws of the countries where they work. But at the same time, we have always been concerned when the long-term contracts are being reviewed," said Hoagland, responding to a question regarding the recent changes in the tax regime in Kazakhstan regarding oil business, particularly on doubling the amount of the oil export duty - up to $ 40 per ton.  

According to ambassador, the heads of the executive management of various American corporations, including companies that operate in the oil sector, contact with the embassy and share their views on tax policy of the country.

"But these are business issues, and they should be resolved through negotiations. And therefore the position of the embassy is so: we call on both parties to resolve all issues through negotiations and compromises," said the diplomat, adding: "And so there are world-class lawyers who earn huge monies in this regard."

American companies Chevron and ExxonMobil operate on the two largest projects in the oil and gas sector of Kazakhstan - Tengiz and the North-Caspian project (Kashagan).

Oil production on the biggest oil field in the Kazakh section of Caspian - Kashagan is to begin later in 2013. Tengiz production volume exceeded 22 million tons of oil per year.

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