Astana names export duty date
Kazakhstan will impose an oil export duty of $109.91 per tonne with effect
from 18 May, according to reports.
The measure, signed by Prime Minister Karim Masimov on 8 April, is aimed at
taming inflation and raising budget revenues. It will not apply to Western
players developing Kazakh fields, but will affect new entrants into
Kazakhstan's play.
The decree, Kazakhstan's first such measure since it gained independence in
1991, was published in the official Kazakhstan Pravda newspaper today and
will come into effect 30 days after its publication, according to Kazakh
legislation.
Its publication was in line with market expectations after officials said the
measure would be enforced from mid-May.
The duty is based on the average first-quarter global oil price of $714.9 per
tonne, or about $94 per barrel.
One tonne of Kazakh oil roughly equals 7.6 barrels.
The government has assured the Western players at the huge Tengiz and
Karachaganak fields - including Chevron, Eni and BG Group - that they will
be not be liable.
But, since Kazakhstan plans to abandon the more flexible production sharing
agreements such as those held by Tengiz operators altogether, newcomers on
the Kazakh market will have to pay the duty, a Reuters report said.
Last year, Kazakhstan produced 67.5 million tonnes of crude, exporting about
60 million tonnes of that volume. This year's production is seen at 70
million tonnes.
The duty will apply to 27 million tonnes of oil exports, or about 40% of last
year's production.
17 April 2008 07:52 GMT
| last updated:
17 April 2008 07:52 GMT
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