The head of KazEnergy - Crude oil production at Kashagan to begin in 2014

/REUTERS, Astana, September 4, 08/ - Industrial production at Kashagan oil will begin in 2014, several months later than earlier planned term, the head of KazEnergy Timur Kulibaev said to reporters on Thursday. "In fact, referred to October 2013, but in winter it would be impossible to run so in any case it will be in 2014" - he said. "We just tell that by the end of 2013, all objects (field) were ready to go" - the head of Kazakhstan Petroleum Association added. KazEnergy formally is not relevant to Kashagan project, but the head of the company Kulibaev, son-in-law of Kazakhstan President Nursultan Nazarbaev, the market is considered one of the most influential players. In late June, the government agreed with the offer of shareholders consortium to develop deposits of shifting the start of industrial production on the deposit in 2013 and to revise the basic provisions of PSA. It as anticipated that change in the PSA will be made not late than October 15, 2008. But in mid-August, Prime Minister of Kazakhstan Karim Masimov instructed management of national oil and gas company KazMunaiGaz to conclude negotiations with the consortium shareholders, leading development of Kashagan field, until October 25 instead of earlier planned term - October 15. "We plan that in 2014 would be 450.000 barrels per day produced in Kashagan" - Kulibaev said. Exxon Mobil, Royal Dutch Shell, Total, ConocoPhillips, Inpex Holdings Inc. enter the consortium on Kashagan development, which is under supervision of Italian Eni KazMunaiGaz in January gained increase of its stake to 16.81 %, what corresponds to the stake of major participant. Kazakhstan with adoption new Tax Code in 2009, plans to increase taxes for primary spheres. In particular, it plans to change royalty for tax on minerals production (TMP) and abolish production-sharing agreement (PSA) for new contracts. Besides, since the end of May 2008 tax on oil export in amount of $109.91 per ton was introduced for 38 companies, working in Kazakhstan. Among them are Exploration Production KazMunaiGaz and other small companies. In July the government included changes and additions to this list and imposed taxes on projects of 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. [2008-09-04]