Kazakhstan may ask Tengiz group to pay export duty
By Raushan Nurshayeva and Maria Gordeyeva
ALMATY, July 23 (Reuters) - Kazakhstan may impose an oil export duty on a Chevron-led (CVX.N) 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.
"Tengizchevroil appreciates the Republic of Kazakhstan's commitment to respecting the sanctity of contracts," its press-service said in remarks sent to Reuters by email.
"Tengizchevroil strongly believes that it is exempt from the recently introduced customs export duty in accordance with the terms of its contract with the Republic of Kazakhstan."
The Tengiz venture also includes Exxon Mobil (XOM.N), LUKOIL (LKOH.MM), and Kazakh energy firm KazMunaiGas [KMG.UL].
The government source said it would take a week to decide on Tengiz.
MORE CONTROL
The duty is based on the average first-quarter global oil price of $714.9 per metric tonne, or about $94 per barrel (one tonne of Kazakh oil roughly equals 7.6 barrels).
It is due to float in accordance with global oil prices but the government has yet to revise the original duty set in May.
The trend comes against the backdrop of a wider strategy by the Kazakhstan government to abandon subsoil contracts favoured by oil companies due to their liberal tax regime, and extract more revenues in the energy sector.
Analysts say the oil-rich nation is growing in its resolve to exert more control over its resources following the first post-Soviet decade when Kazakhstan, its economy in tatters, lured foreign investors with tax breaks and sky-high returns.
The list of liable companies also includes London-listed KazMunaiGas Exploration and Production (KMG E&P) (KMGq.L), as well as PetroKazakhstan, controlled by China's CNPC. (Writing by Maria Golovnina)
