Exxon urges Kazakhstan not to revise tax rules

ATYRAU, Kazakhstan, June 6 (Reuters) - ExxonMobil (XOM.N) urged Kazakhstan on Friday against revising taxes for oil companies, saying the proposed measure would hinder fresh investment in the oil-rich Central Asian state.

Kazakhstan has introduced an oil export duty and announced plans to impose new taxes on the booming sector dominated by Western oil majors, as part of proposed legislation changes due later this year.

Mark Albers, Exxon's Senior Vice President, told a foreign investors forum in the Kazakh oil city of Atyrau that the proposed changes would hurt Kazakhstan's business climate.

"Restructuring fiscal agreements or revising fiscal legislation with an assumption of sustainable high oil prices might seem to generate additional revenue for the government, but in fact hinders new investment, undermining investor confidence and increasing risks," he said.

Causing further concern, the Kazakh government has also threatened to review a contract with a Western oil consortium -- which includes Exxon -- developing the giant Kashagan oil field due to disagreement over costs and production schedule.

Analysts say Kazakhstan, emboldened by its booming economy and high global oil prices, is unhappy with the terms of some oil contracts signed in the 1990s and is trying to get a greater share of revenues.

"Stability and predictability are important in making sure that both the government and the investors are confident about the optimal pace of development," Albers said.

As part of the proposed changed, the government plans to introduce a subsoil extraction tax and make all existing contracts, including Production Sharing Agreements (PSAs) subject to parliamentary approval.

(Reporting by Olzhas Auyezov)