UPDATE 2-Kazakhstan may impose oil export duty -minister
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ASTANA, Jan 29 (Reuters) - Kazakhstan may impose a duty on exports of crude and oil products from 2009, the energy minister said on Tuesday, a step likely to alarm Western oil companies and hinder its bid to join the World Trade Organisation.
Kazakhstan, which has been toughening its oil policy, set alarm bells ringing throughout the industry last year with a row over the huge Kashagan oilfield and by passing legislation empowering the government to break oil contracts.
Speaking at a government meeting, Energy Minister Sauat Mynbayev said the duty would not necessarily apply to all producers but it would risk affecting WTO accession talks.
"We've asked for a month to complete additional calculations and prepare all the documents," Mynbayev said, adding that the final decision could be reached as soon as within a month.
"The introduction of the oil duty can complicate (WTO) negotiations but if we do not do it now we will never do it ... It is difficult, but possible."
Kazakhstan's new-found assertiveness in energy diplomacy has been a worry to foreign investors, already jittery following the Central Asian state's bitter row with Italy's Eni (ENI.MI) and other oil majors over the Kashagan field.
Kazakhstan accused the consortium of production delays and cost overruns in a 6-month dispute that ended this month after Kazakhstan stripped Eni of its leading role in Kashagan.
Mynbayev said the duty may become necessary from next year as Kazakhstan seeks to stabilise oil supplies on the domestic market -- but added that it would affect only those producers whose agreements stipulate flexible oil tax schemes.
KASHAGAN NOT AFFECTED
Most big oil producers in Kazakhstan, however, have production sharing agreements (PSA) with fixed taxation schemes that technically make them exempt from the duty.
"It is clear that in the end it will not be possible to introduce export duty for all the producers," Mynbayev said, adding that the duty would not affect the Kashagan field.
He said it would likely apply to a total of 27 million tonnes of oil exports, or 40 percent of last year's production.
The government would hold "individual" discussions with PSA companies to come up with the final list of those eligible. Continued...
