Completion of deal on transfer of 10% in Karachaganak project to Kazakhstan will be done during 1h2012

/IRBIS, December 14, 2011/ - Final completion of the transaction for the transfer to the Kazakh side of 10% stake in the Karachaganak project must occur within the first half of 2012, reports the press service of the Prime Minister of the Republic of Kazakhstan. As reported today in Astana in the presence of Prime Minister Karim Massimov ceremony of signing the Agreement on the settlement of problematic issues between the Government of the Republic of Kazakhstan and the consortium Karachaganak Petroleum Operating was held. Kazakhstan's share in the Karachaganak project increased to 10%. "Karachaganak. The agreement was signed," - the message was made today by Karim Massimov on his page on Twitter. According to the Ministry of Oil and Gas, as a result of lengthy negotiations that had been conducted during the period from 2009 to 2011, the Karachaganak consortium agreed to transfer to Republic of Kazakhstan 5% share in the expense of resolving differences over the period until December 31, 2009, and sold at market price additional 5% stake in the project, thus bringing the participation of the Republic of Kazakhstan up to 10% and increasing the revenues of the Republic from the project. "The parties agreed to apply the agreed mechanism to control costs, which will allow the Kazakh side to increase control over the amount of expenses that may arise during the implementation of major investment projects in the field", - was stated in the message. In turn, for further mutually beneficial cooperation between the parties in the implementation of the Karachaganak project, the Republic of Kazakhstan and the consortium have reached several important agreements aimed at achieving maximum clarity on issues such as taxation, customs fees, reimbursement of expenses. As indicated, the Republic of Kazakhstan confirmed the stability of the contract with the Karachaganak consortium. "Taking into account the accession of the Kazakh side to the project as a member, Kazakhstan has agreed to provide additional relevant quota in the Caspian Pipeline Consortium in the amount of 0.5 million tons/year with a further increase to 2 million tons/year. Final completion of the transaction depends on the performance both parties and a number of conditions must occur within the first half of 2012. At the time of closing all the arrangements will take effect and JSC NC "KazMunayGas" will participate in the Karachaganak project (10%)", - was stated in the message. The Karachaganak field is one of the largest in the world. Stocks of liquid hydrocarbons (oil and condensate) are more than 1.2 billion tons, natural gas - 1.35 trillion cubic meters. [2011-12-14]