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KMG: No compromise made on financial dispute around KazTransGas-Tbilisi joint venture

Oil&Gas Materials 6 May 2011 19:23 (UTC +04:00)

Kazakhstan, Astana, May 5 / Trend, A. Maratov /
There is no progress yet in resolving the financial dispute between the Kazakh and Georgian sides around the KazTransGas-Tbilisi joint venture, KazMunaiGas Chairman Kairgeldy Kabyldin said in an interview with Trend.

"Yet there is no positive progress and we will wait," Kabyldin said.
The Kazakh national company's leadership is in talks with the Georgian counterparts to fulfill obligations undertaken by the Georgian side in the KazTransGas-Tbilisi joint venture. The dispute lies in the fact that the partners of the Kazakh side on the joint venture and the Georgian authorities were supposed to fulfill three key terms.

The disagreement between the Kazakh gas industry workers and their Georgian partners began three years ago. The KazTransGas and the Georgian State Oil and Gas Corporation then had different points of view on fuel prices.

KazTransGas purchased movable and immovable assets of Tbilgaz for $12.5 million in 2007, and announced plans to invest $82 million in Tbilisi's gas distribution system. The company has already made investments in the amount of $45.5 million for two years.
At present, the venture's total investment cost is about $100 million.

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