Tax hit: Tengizchevroil'se Tengiz field may face export tax
Kazakhstan eyes tax on Tengiz
Kazakhstan may impose an oil export duty on the Chevron-led Tengizchevroil oil venture, which develops the huge Tengiz oilfield in the Caspian Sea, a government source said today.
Kazakhstan introduced the duty, set at $109.91 per tonne at the current global price level, in mid-May in a first such measure since Kazakhstan gained independence in 1991, but said it would not apply to major projects.
This month a group developing the Karachaganak gas field became the first Western entity to fall under the rule.
Today a source told Reuters the government now wanted to apply the duty to Tengizchevroil’s Tengiz oilfield.
"At the moment lawyers are examining legislation over whether or not we can impose the duty," the source said.
"We have not decided on Tengiz yet. ... At the moment the lawyers do not have a clear vision on this. We do not just impose something, we look at the law first."
The government said originally the duty would not affect big groups such as Karachaganak or Tengiz because of the legal nature of their contracts with the government.
But later officials hinted that Kazakhstan wanted a universal duty for all producers to broaden budget revenues.
Tengizchevroil, however, said it was exempt from the duty.
"Tengizchevroil appreciates the Republic of Kazakhstan's commitment to respecting the sanctity of contracts," its press-service said in remarks sent to Reuters by email.
"Tengizchevroil strongly believes that it is exempt from the recently introduced customs export duty in accordance with the terms of its contract with the Republic of Kazakhstan."
The Tengiz venture also includes ExxonMobil, Lukoil and Kazakh energy firm KazMunaiGas.
The government source said it would take a week to decide on Tengiz.