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


 - Gulf Of Mexico Lease Sale Nets $315M in Bids, Feds Suggest Trump Bounce (Mar 22)
 - Oil Giants Upending Shale Turf Where Wildcat Drillers Once Ruled (Mar 21)
 - ExxonMobil Agrees to Buy 25% Stake in Mozambique's Area 4 Block (Mar 9)
 Company: Shellmore info


 - Gulf Of Mexico Lease Sale Nets $315M in Bids, Feds Suggest Trump Bounce (Mar 22)
 - Norway Awards 56 Oil And Gas Licences In Mature Areas (Jan 17)
 - Southern North Sea Special Interest Group Launched (Nov 21)
 Company: Total S.A.more info
 - Total Starts Up Moho Nord Deep Offshore Project (Mar 15)
 - Chevron Commences Oil, Gas Production from Angola Project (Mar 9)
 - Oil Majors Still Years From Repairing Balance Sheets After Price War (Mar 8)
 Company: ConocoPhillipsmore info


 - ConocoPhillips CEO Talks Talent Shortage and Learning in the Downturn (Mar 7)
 - Shell Shuns New Oil Sands as Low Crude Prices Force Cost Control (Feb 27)
 - Origin To Take A$1.9B Charge On LNG, Exploration Assets (Feb 15)
 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


 - Lukoil Finds Oil at Iraq Well (Feb 22)
 - Japan's Inpex Sticks To Australia Ichthys LNG Output Target (Feb 10)
 - Inpex, ADNOC Agree to Extend Offshore Abu Dhabi Joint Development Project (Jan 16)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


Brent Crude Oil : $50.75/BBL 0.09%
Light Crude Oil : $47.73/BBL 0.50%
Natural Gas : $3.05/MMBtu 0.97%
Updated in last 24 hours