Kazakhstan to continue talks over Karachaganak tax dispute
Baku, Azerbaijan, Jan. 26
By Elena Kosolapova – Trend:
Kazakhstan will continue talks about tax dispute with the consortium developing the Karachaganak oil field, said Energy Minister Kanat Bozumbayev, according to the Energy Ministry’s website Jan. 26.
The minister said that in December 2016 Kazakhstan and shareholders of Karachaganak signed a memorandum extending negotiations for nine months.
Meanwhile, Kazakhstan will continue arbitration proceedings on this issue, which were initiated last year, he said.
Karachaganak is being developed within the production sharing agreement (PSA) reached between Kazakhstan and a consortium that includes Royal Dutch Shell (29.25 percent), Eni (29.25 percent), Сhevron (18 percent), Lukoil (13.5 percent) and KazMunaiGas (10 percent).
Kazakhstan claims that during a certain period it did not receive a part of its share of oil from the Karachaganak field. Bozumbayev earlier said the oil that was not received is worth billions of dollars.
The Karachaganak oil and gas condensate field, located in the West Kazakhstan Province, is one of the largest fields in the world. Its reserve is estimated at over 1.2 billion tons of liquid hydrocarbons and 1.3 trillion cubic meters of gas.
The field gives almost 45 percent of the total gas and 16 percent of the total liquid hydrocarbons produced in Kazakhstan.
As much as 141.7 million barrels of oil equivalent was produced from the field in 2015.