Kazakh gov't, KPO to sign agreement on Karachaganak project soon
Baku, Azerbaijan, Jan. 4
By Rashid Shirinov – Trend:
The agreement on the settlement of the dispute on the calculation of oil revenues between the government of Kazakhstan and the Karachaganak Petroleum Operating consortium (KPO) will be signed in January, Trend reports citing Interfax-Kazakhstan.
"We will probably sign the agreement in January. We worked hard on the text of the agreement in December. Almost all issues are agreed upon," Kazakh Energy Minister Kanat Bozumbayev said.
He noted that the Settlement Agreement will come into force on July 1.
"After this, KPO will pay us the first part of the compensation, $400 million," the minister said.
In October 2018, the government of Kazakhstan completed a three-year negotiation process with the consortium on the dispute on the calculation of oil revenues. According to the agreement, KPO will pay Kazakhstan a compensation of $1.111 billion within three years.
Karachaganak Petroleum Operating is a consortium of companies united for the implementation of the project in Karachaganak, one of the world’s largest gas and condensate fields. The shares in the consortium are as follows: Eni - 29.25 percent, Royal Dutch Shell PLC - 29.25 percent, Chevron - 18 percent, Lukoil - 13.5 percent and KazMunaiGas - 10 percent.
Follow the author on Twitter: @ShirinovRashid