Kazakhstan to decide on imposing duty for TSHO by August

/REUTERS, Almaty, July 23, 08/ - Kazakhstan authorities examine legal opportunities of including major oil producer of the country Tengizshevroil, under control of American Chevron in the list of export duty oil payers and may take decision during the week, government's source informed REUTERS on Wednesday. Kazakhstan at the end of May 2008 dutys on oil export in amount of $109.91 per ton was introduced for 38 companies that operate in Kazakhstan. Among them - semi state Exploration Production KazMunaiGaz and other small enterprisers. In July government added and expanded this list, imposing duty on Karachaganak digging, which develops companies` consortium such as LUKOIL, Eni, BG and Chevron. Next year the duty is supposed to cover all contracts, its rate will be review every quarter, depending on world oil prices. "There is no any decision on Tengizshevroil. Now lawyers analyze Legislation on subject whether they can impose duty or not. If they say they cant, so it would be" - the source said. According to source, the decision will be accepted within a week. "There is still no definite understanding (whether to impose duty or not)... First we should consult Law" - he added. At the same time, TSHO hopes that contract with Kazakhstan government in 90s will protect company from duty payment. "We have all reasons to suggest that according to term of initial agreement on Tengizshevroil joint enterprise project, made with Kazakhstan republic, recent imposed export duties on energy suppliers export not cover the products, exported by Tengizshevroil LLP" - is said in company's press service report. In 2008 TSHO plans to produce 18 m. tones of oil. American Chevron possesses the half of JV`s capital, 25% - ExxonMobil, 20% - state company KazMunaiGaz, 5% - LUKArco, under control of Russian LUKOIL. Tengiz`s produced reserves are estimated in 1.3 bn. tones of oil. [2008-07-24]