Agip-led Consortium to Pay Taxes on Kashagan Field

The State Tax Committee in Kazakhstan has revoked an important tax exemption for the Agip-led consortium that is developing the Kashagan field located in the Caspian Sea. Now the consortium will have to meet value-added-tax liabilities backdated over the last four years. Two certificates issued in 1999 and 2000 by the government had so far exempted the consortium from most VAT liabilities. An official from the tax committee said the certificates contradicted Kazakh law and were given prematurely. VAT exemption will now only be allowed once oil extraction has started, and not during the exploration stage, he added.

The government's decision follows a similar attempt in November 2002 to renegotiate the terms of the production-sharing agreement for Tengizchevroil, the consortium operating the giant Tengiz field. Various Kazakh government officials have stated that agreements signed in the 1990s on development of the country's oil riches were too generous to private-sector companies.

The Agip-led KCO consortium is comprised of ConocoPhillips, ExxonMobil, Shell, Total SA and Inpex.

Related Companies
 Company: Exxon Mobil Corporationmore info

 - Exxon CEO Doesn't See Supply Shortage Pushing Up Oil Prices (Oct 19)
 - ExxonMobil To Start Drilling First Liberia Well In November (Oct 19)
 - Norway Gas Plant Workers Agree Wage Deal, Avoid Strike (Oct 7)
 Company: Shellmore info

 - Shell Suspends Pacific Northwest Crude-By-Rail Project (Oct 7)
 - Norway Gas Plant Workers Agree Wage Deal, Avoid Strike (Oct 7)
 - Oil Industry Teams Up to Fight Cyber-Crime (Sep 29)
 Company: Total S.A.more info
 - Total Says Brazil Libra NW Prospect Holds 3-4 bln Barrels of Oil (Sep 29)
 - Oil Industry Welcomes Indonesia's Tax Reform, But Says It's Not Enough (Sep 23)
 - Oil Firms Seen Spending More Next Year For First Time Since 2014 (Sep 23)
 Company: ConocoPhillipsmore info

 - ConocoPhillips Sues Venezuela's PDVSA, Calls Bond Swap 'Fraudulent' (Oct 7)
 - MedcoEnergi Acquires ConocoPhillips' Stake in South Natuna Sea Block (Sep 20)
 - Pertamina's Upstream Arm Produces 15% More Oil, Gas Than Planned (Sep 19)
 Company: Agipmore info

 - Niger Delta Avengers Attack Escravos Terminal (May 26)
 - CAMAC Ups West African Interests (Dec 30)
 - Saipem Wins Jack/St. Malo, Kashagan Contracts (Dec 16)
 Company: Inpexmore info

 - Indonesia Considers Inpex Request To Boost Masela LNG Output Again (Oct 21)
 - MedcoEnergi Acquires ConocoPhillips' Stake in South Natuna Sea Block (Sep 20)
 - UKJV Confirms Commercial Settlement of Ichthys SMP Project Up to May 31 (Aug 30)

Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $51.38/BBL 2.44%
Light Crude Oil : $50.43/BBL 2.26%
Natural Gas : $3.14/MMBtu 0.94%
Updated in last 24 hours