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]