Kazakhs seek 2.5 bn from ChevronTexaco-led TCO
28.09.04 11:08
/REUTERS, September 28, 04/ - Kazakhstan's government is seeking a
total of $2.5 billion in back taxes and fines from ChevronTexaco-led oil
venture Tengizchevroil (TCO), Chevron's venture partner LUKOIL said on
Tuesday.
"I believe this is now in the stage of negotiations (with the government)," a
LUKOIL official said by telephone from Moscow. Russia's Kommersant daily
said earlier the Kazakh government was seeking $120 million in back taxes
from LUKOIL as part of its claim to TCO.
"I have nothing to add to what Kommersant said," the official said. Kazakh
officials and other TCO partners could not be immediately reached for
comment.
Kommersant said that Kazakhstan's tax claim to TCO was for overdue taxes
and fines dating back to 2000-03.
TCO, the Central Asian state's largest oil producer, has been at odds with
the government on how to fund its expansion. TCO has pressed for the so-
called "accelerated amortisation".
But the government has said that this financial scheme cuts taxes which the
multinational venture pays to the state budget.
TCO, which sits on the giant onshore Tengiz oilfield in western Kazakhstan,
aims to boost output to 480,000 barrels per day by 2006 from around
260,000 bpd currently.
ChevronTexaco holds 50 percent in TCO, while LUKOIL owns a 54 percent
stake in LUKArco, which holds 5 percent in TCO.
On Wednesday Russia's government is due to hold an auction to sell its
remaining 7.6 percent stake in LUKOIL with a starting price of nearly $2
billion. LUKOIL is the world's second largest firm by reserves.
U.S. energy firm ConocoPhillips is tipped by Russian media and officials to
be a "very interested" bidder for the LUKOIL stake. The firm has several joint
projects with LUKOIL.
Other partners in TCO include ExxonMobil with 25 percent and Kazakh state
oil and has holding KazMunaiGas with 20 percent.
[2004-09-28]