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Kazakhstan may ask Tengiz group to pay export duty

Wed Jul 23, 2008 8:58am EDT
 
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By Raushan Nurshayeva and Maria Gordeyeva

ALMATY, July 23 (Reuters) - Kazakhstan may impose an oil export duty on a Chevron-led (CVX.N: Quote, Profile, Research, Stock Buzz) oil venture in the Central Asian state, a government source said on Wednesday. Kazakhstan introduced the duty, set at $109.91 per tonne at the current global price level, in mid-May in a first such measure since Kazakhstan gained independence in 1991, but said it would not apply to major projects.

This month a group developing the Karachaganak gas field became the first Western entity to fall under the rule.

On Wednesday, the source told Reuters the government now wanted to apply the duty to Chevron's Tengizchevroil venture developing the huge Tengiz oilfield in the Caspian Sea.

"At the moment lawyers are examining legislation over whether or not we can impose the duty," he source said.

"We have not decided on Tengiz yet. ... At the moment the lawyers do not have a clear vision on this. We do not just impose something, we look at the law first."

The government said originally the duty would not affect big groups such as Karachaganak or Tengiz because of the legal nature of their contracts with the government.

But later officials hinted that Kazakhstan wanted a universal duty for all producers to broaden budget revenues.

Tengizchevroil, however, said it was exempt from the duty.  Continued...

 

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