Commodities and Futures News

Kazakhstan takes oil majors to arbitration over costs

2023.04.11 04:05


© Reuters. FILE PHOTO: Infrastructure on D Island, the main processing hub, is pictured at the Kashagan offshore oil field in the Caspian sea in western Kazakhstan August 21, 2013. REUTERS/Stringer

ASTANA (Reuters) -Kazakhstan has started arbitration proceedings against companies developing its Kashagan and Karachaganak oilfields over $13 billion and $3.5 billion respectively in costs deducted as part of profit-sharing deals, its energy minister said on Tuesday.

“I can only say these lawsuits have been filed in the interest of the people of Kazakhstan,” Energy Minister Almasadam Satkaliyev told reporters, declining to provide any further details about the claims.

The offshore Kashagan field, one of the biggest discoveries in recent decades, is being developed by Eni, Shell (LON:), TotalEnergies, ExxonMobil (NYSE:), KazMunayGas, Inpex and CNPC.

Eni, Shell and KazMunayGaz are also partners in Karachaganak, alongside Chevron (NYSE:) and LUKOIL.

The two consortia’s offices in Kazakhstan did not reply to requests for comment.

Both projects are covered by production-sharing agreements stipulating that companies can deduct certain costs from income before splitting it with the government. The size of the deductions determine how much income there is to be split.

Kashagan and Karachaganak, both of which pump around 400,000 barrels of oil per day, are the second and third biggest producers of oil respectively in the Central Asian nation whose economy relies heavily on energy exports.

The Astana government has already had a series of disputes with its partners about the terms of oil deals, which typically ended with settlements.

According to a Bloomberg report published this month, the claims cover the period from 2010 to 2018 for Kashagan and from 2010 to 2019 for Karachaganak.

Kazakhstan and the Karachaganak consortium settled their most recent dispute in 2018 after three years of negotiations, with the group paying Astana $1.1 billion and giving it a greater portion of future profits.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 75,202.15 1.11%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,809.65 6.11%
tether
Tether (USDT) $ 1.00 0.06%
solana
Solana (SOL) $ 188.93 1.32%
bnb
BNB (BNB) $ 593.77 1.65%
usd-coin
USDC (USDC) $ 1.00 0.03%
xrp
XRP (XRP) $ 0.545913 2.79%
dogecoin
Dogecoin (DOGE) $ 0.190394 1.50%
staked-ether
Lido Staked Ether (STETH) $ 2,807.47 6.03%
tron
TRON (TRX) $ 0.160289 2.28%
cardano
Cardano (ADA) $ 0.377746 6.50%
the-open-network
Toncoin (TON) $ 4.88 3.71%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,335.22 6.74%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 75,169.14 1.21%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 0.31%
avalanche-2
Avalanche (AVAX) $ 26.90 2.23%
weth
WETH (WETH) $ 2,811.75 6.36%
chainlink
Chainlink (LINK) $ 12.29 3.79%
bitcoin-cash
Bitcoin Cash (BCH) $ 377.66 3.15%
sui
Sui (SUI) $ 2.29 0.14%
polkadot
Polkadot (DOT) $ 4.09 0.55%
leo-token
LEO Token (LEO) $ 6.28 1.32%
usds
USDS (USDS) $ 0.986141 0.91%
uniswap
Uniswap (UNI) $ 9.02 1.78%
litecoin
Litecoin (LTC) $ 70.93 1.47%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,960.18 6.40%
near
NEAR Protocol (NEAR) $ 4.16 1.70%
aptos
Aptos (APT) $ 9.63 3.57%
pepe
Pepe (PEPE) $ 0.00001 10.47%
bittensor
Bittensor (TAO) $ 513.57 1.56%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.39 0.29%
internet-computer
Internet Computer (ICP) $ 7.63 0.05%
dai
Dai (DAI) $ 1.00 0.07%
monero
Monero (XMR) $ 165.01 1.76%
ethereum-classic
Ethereum Classic (ETC) $ 19.85 3.85%
kaspa
Kaspa (KAS) $ 0.117445 0.35%
stellar
Stellar (XLM) $ 0.098599 2.43%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.13%
whitebit
WhiteBIT Coin (WBT) $ 19.37 0.24%
aave
Aave (AAVE) $ 180.66 10.57%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.341511 5.00%
blockstack
Stacks (STX) $ 1.66 0.16%
okb
OKB (OKB) $ 40.13 2.50%
crypto-com-chain
Cronos (CRO) $ 0.086913 3.47%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.41%
dogwifcoin
dogwifhat (WIF) $ 2.34 0.75%
arbitrum
Arbitrum (ARB) $ 0.570447 9.04%
filecoin
Filecoin (FIL) $ 3.72 3.36%
mantle
Mantle (MNT) $ 0.63855 8.35%