News 2011
#2 (68), April 2011КPO
"Negotiating process on Kazakhstan's entry the Karachaganak project will be completed by 2011," informed Karim Massimov, Republic's Prime Minister.
Karachaganak Petroleum Operating (KPO) is a consortium of the companies formed to run the Karachaganak project. The consortium consists of BG Group and Eni, each holding 32.5 %, as well of Chevron (20 %) and LUKOIL (15 %).
KPO operates one of the world's largest oil and gas condensate fields. The consortium conducts its activity in accordance with a final production sharing agreement signed with the government of Kazakhstan in November 1997. Under the terms of agreement, the consortium will conduct management of the Karachaganak project in the period through 2038, and no new taxes and tax fees will be imposed on its participants. The main shareholders are British BG Group Plc and Italian Eni.
"The negotiating process will be completed in this year," said Massimov in an interview to the "Echo of Moscow" Radio. He explained that the authorized body in the person of the Kazakhstan' Ministry of Oil and Gas is currently conducting negotiations, and he cannot disclose the details of these negotiations so far.
Earlier, representatives of JSC NC KazMunayGas stated that Kazakhstan wishes to acquire up to 10 % in the Karachaganak consortium; the proposal "is on the table of the Karachaganak project's members," informs News-Каzakhstan Information Agency.