The budget lost $100 m payments from BG

29.09.04 11:08
/IRBIS, September 29, 04/ - The information below is translated abstract of KZ-today news. The Ministry of Finance of Kazakhstan (MoF) informed that the state budget would not receive planned $100 m payments from BG Group Pls. MoF informed that BG is currently negotiate its rights (resale of shares in Kashagan project) thus taking additional obligations over corporate and income taxes. MoF had previously planned to receive payment in 2004 but legal procedures and negotiation of the deal with other shareholders in the project delayed BG tax obligations. MoF noted that budget revenues would be anyway met by 101.5%. Recently, the minister of Energy and Mineral Resources announced that next stage of negotiations on sale of BG stake to Kazakhstan would be held in October this year with planned completion of talks by end of the year. British BG has previously announced plans to sell its stake in Kashagan (16.67%) in equal parts to each of project participants (Eni, Royal Dutch/Shell, Total, Exxon Mobile, ConocoPhillips and Inpex). At the same time, Kazakhstan government appeared to be willing to buy the stake. [2004-09-29]