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


 - ExxonMobil's $5.6B Acquisition Validates Permian as Core Operator Strategy (Jan 17)
 - Petrovietnam, Exxon Mobil Sign Deal On Gas Generation (Jan 13)
 - ExxonMobil Strikes More Oil Offshore Guyana (Jan 12)
 Company: Shellmore info


 - Norway Awards 56 Oil And Gas Licences In Mature Areas (Jan 17)
 - Southern North Sea Special Interest Group Launched (Nov 21)
 - Report: Growing Confidence in North Sea Oil, Gas Industry (Nov 14)
 Company: Total S.A.more info
 - Big Oil Back On The Acquisition Trail As Outlook Brightens (Jan 19)
 - Oil, Gas Firms Make Global 100 Most Sustainable Corporations List (Jan 19)
 - Norway Awards 56 Oil And Gas Licences In Mature Areas (Jan 17)
 Company: ConocoPhillipsmore info


 - Startup Of Malikai Oil Field To Boost Malaysia's Kimanis Exports (Dec 13)
 - US Shale Firms Go Back To Work Buoyed By OPEC Deal, Trump Victory (Nov 14)
 - ConocoPhillips Aims To Sell Up To $8 Billion In Gas Assets (Nov 10)
 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


 - Inpex, ADNOC Agree to Extend Offshore Abu Dhabi Joint Development Project (Jan 16)
 - Total, Shell, Eni Eligible to Bid for New Iran Oil, Gas Projects (Jan 3)
 - SOCAR, AIOC Agree to Develop ACG Field (Dec 23)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


Brent Crude Oil : $55.23/BBL 0.46%
Light Crude Oil : $52.75/BBL 0.62%
Natural Gas : $3.24/MMBtu 1.25%
Updated in last 24 hours