News 2017August 2013
In Astana the Government of the Republic and the oil company Tengizchevroil discuss the content of the Memorandum on the Future Growth Project (FGP) in Tengiz field, as was reported by a source in the Ministry of Industry and New Technologies informed of the course of negotiations.
The source communicated, “Currently the government has a heated discussion of all points of the Memorandum on the Future Growth Project in Tengiz field. Completion of work over this document so important to the oil and gas industry is scheduled for the end of this month.” According to the source, the discussion involves such agencies as the Ministry of Industry and New Technologies and the Ministry of Oil and Gas, as well as the representatives of TCO and the National Company KazMunayGaz.
The informant highlighted:“At present the parties are discussing the details and provisions of the future Memorandum to find the model of cooperation, which would be acceptable to all of them. It involves the list of consumable goods, works and services. It is important to ensure adequate participation of Kazakh companies in the Future Growth Project.” According to the information of the source the Ministry of Industry and New Technologies is the last remaining authority that has not yet given its consent to Draft Memorandum and insisted on its detailed consideration.
“It’s a matter of principle since we are talking about increasing the proportion of Kazakh contribution in the project at Tengiz. Judge for yourself, the preliminary estimated cost of FGP is 23 billion U.S. dollars. This is a large sum of money which has to work for the benefit of national economy,” said the agency representative. According to the source, negotiations on the Memorandum continue daily. The discussion on the Memorandum should be over by the end of August this year.