Prime Minister of Kazakhstan instructed to conclude negotiations on Kashagan until October 25

/REUTERS, Almaty, August 20, 08/ - The Prime Minister of Kazakhstan Karim Masimov instructed the new management of national oil and gas company KazMunaiGaz to conclude negotiations with consortium` shareholders of Kashagan before October 25, instead of earlier announced October 15, press service of the Prime Minister of RK informed. "Masimov gave the range of orders, among which Kashagan negotiation completion till October 25 and completion of 51% share acquisition process of MANGISTAUMUNAIGAZ" - press service informed. The Italian company Eni lead the consortium to develop deposits of Agip KCO, will cease to be the main operator of the project and share this status with Exxon Mobil, Royal Dutch Shell, Total, ConocoPhillips, Inpex Holdings Inc. A month earlier, government agreed with shareholders` offer on shifting the start of industrial production on 2013 and reviewing the main parts of production sharing agreement (PSA). Changes in PSA were supposed to include not late than October 15, 2008. KazMunaiGaz in January gained increasing of its stake to 16.81 %, what corresponds to the major stake project. Kazakhstan with adoption new Tax Code in 2009plans to increase taxes for primary spheres. In particular, it plans to change royalty for tax on minerals production (TMN) and abolish for new contracts such kind of agreement as production sharing agreement (PSA). Besides, since the end of May taxes on oil export in amount of $109.91 per ton was introduced for 38 companies, working on Kazakhstan territories. Among them Exploration Production KazMunaiGaz and some small companies. In July government added and expanded the list, including LUKOIL, Eni, BG and Chevron. Last year Kazakhstan produced 67.5 m. tones of oil and condensate, export made 60.8 m. tones. Forecast for 2008 - 67.6 m. tones. [2008-08-20]