Kazakhstan’s share in profits from Karachaganak stands at 20%

Kazakhstan’s share in the profits from Karachaganak oilfield developed by Karachaganak Petroleum Operating (KPO) stands at 20%, Minister of Oil and Gas Sauat Mynbayev told during an on-line conference, Bnews.kz reports. “Now the Kazakh side enjoys 20% in the profits, after taxation”, Minister said. "Kazkahstan is ready to consider a concept of the 3rd stage of development [of Karachaganak] as soon as it is submitted for consideration”, he said, adding that “configuration of the 3rd stage of development [of Karachaganak] that was submitted for consideration at the start of negotiations made up $ 23 billion (…) This configuration was not accepted. As of today, no concept of the 3rd stage has been approved.” “I think the parties are waiting for the “old” reciprocal claims to be resolved. As soon as the claims have been resolved, the consortium will come up with a new concept of the 3rd stage within a short time”, Minister summed up. With its 1.2 billion tons of oil and condensed gas and 1.35 trillion cubic metres of gas, Karachaganak is one of the largest O&G fileds in the world. Karachagank accounts for 49% of all the gas production and 18% of oil production in Kazkahstan. Karachaganak Petroleum Operating (KPO) is a consortium of companies to develop Karachaganak oilfiled. The consortium includes BG Group, Eni (32.5% each), Chevron (20%) and LUKOIL (15%). KPO operates in accordance with a PSA signed with the Kazakh Government in November 1997. According to the PSA, the consortium shall be operating the project up to 2038.