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Astana steps back from PSAs
By Upstream staff
Kazakhstan will stop using production sharing agreements as a form of co-operation with companies seeking to tap its vast energy reserves, Prime Minister Karim Masimov said today.
Kazakhstan has been toughening its energy policy over the past years, alarming foreign investors who see its new-found assertiveness as part of the growing global trend of resource nationalism.
Masimov, addressing a meeting with tax officials, said the oil-rich Caspian nation will remain committed to contractual obligations stipulated in all existing PSAs with foreign and domestic companies.
"For new contracts we ought to exclude production sharing agreements as a type of contract," Reuters quoted Masimov saying.
"Kazakhstan will continue to fulfil its obligations for those contracts that have already been signed," he added.
He did not describe a type of contract Kazakhstan wanted to use with oil companies from now on, but said taxes should be increased for all subsoil companies.
Kazakhstan's biggest oilfields such as Kashagan, Tengiz and Karachaganak, are all being developed by Western players including Italy's Eni, ExxonMobil and Shell.
Kashagan and Karachaganak are PSAs, while Tengiz is based on a concession agreement.
Thursday, 21 February, 2008, 06:34 GMT | last updated: Thursday, 21 February, 2008, 07:49 GMT
