No go: at Kashagan
Astana 'wants $10bn Kashagan pay-out'
Kazakhstan is seeking "more than $10 billion" in compensation from the Eni-led AgipKCO consortium for delays in developing the Kashagan oilfield in the Caspian Sea, Deputy Finance Minister Daulet Yergozhin said today.
"Certainly it will be more than $10 billion," Yergozhin told Reuters by telephone, a day before a deadline for talks between the two sides was set to expire.
Kazakhstan's tax authorities had unanswered questions about the consortium's tax payments and were carrying out a planned audit into its activities, he said.
Yergozhin denied that the Kashagan case was an attack on Western investors in general.
"There are many examples in Kazakhstan of investors abiding by the law and working normally," he said.
"We will let you know about the results later. It will happen by October," Yergozhin said by telephone.
"At the moment I can say we have questions which we have been unable to get answers for."
Kazakhstan has threatened to prolong its Kashagan suspension beyond the three months already announced, putting further pressure on the consortium.
AgipKCO includes Shell, ExxonMobil, Total, ConocoPhillips, Japan's Inpex Holdings and Kazakh state-run player KazMunaiGaz.
Sources close to the talks have said Kazakhstan was expecting the Eni-led group to come up with a proposal outlining "an adequate compensation" tomorrow.
Yergozhin denied the case was part of a broader attack against Western investors. Some analysts have compared Kazakhstan to other resource-rich nations seeking to tighten the state's grip over strategic assets.
"There are many examples in Kazakhstan of investors abiding by the law and working normally," he said. "The answer is clear. Abide by the law and business ethics, and everything will be fine."