Kazakhstan will engage in negotiations regarding a possible increase in its stake in Tengiz. This was announced today during a briefing by the Minister of Energy, Almasadam Satkaliyev, as reported by a correspondent from the Kapital.kz business information center.
“We have been instructed to conduct consultations with consortium participants in a sufficiently open manner within the framework of international agreements and international law. Given the timelines for the development of the field, the most relevant for us is Tengizchevroil, which is the Tengiz field, with partners including Chevron, ExxonMobil, and Lukoil. We plan to initiate preliminary consultations with them and, when ready, begin negotiations. The government will first formulate an agenda and a list of its requirements. One possible requirement is an increase in Kazakhstan's share in these projects,” he clarified.
The minister emphasized that, in accordance with agreements, the Kazakh side should officially begin relevant negotiations within the next year or two.
Additionally, he commented on the situation regarding the legal proceedings related to Kashagan.
“The interests of the state are represented by our authorized body, PSA, which is empowered to conduct all relevant negotiations and arbitration processes. Consultants are working who have made their own calculations, meaning that the requirements of the Republic of Kazakhstan are based on calculations made by the relevant expert organizations and consultants of our authorized body. I cannot comment on the amounts. This is an international arbitration proceeding under international law, and everything related to this process falls under the jurisdiction of the relevant authority,” emphasized Almasadam Satkaliyev.
Recall that during an extended government meeting with President Kassym-Jomart Tokayev on January 28, the Minister of Energy reported that the government had formed a commission to study the situation with existing production sharing agreements (PSAs) with extracting companies.
“One possible option for extending the PSAs includes improving contract conditions, increasing Kazakhstan's share, and changing certain operators. The final decision will be made based on dialogue: open, direct competitive dialogue in accordance with international law with the participants of these consortiums and shareholders,” he noted.
The Minister of Energy stressed that according to the terms of the PSAs, the Kazakh authorities have at least 2-3 more years before negotiations begin.
“The instruction has been sent to the government. In turn, it has formed a relevant commission to study the situation with existing PSAs and approaches related to the conditions for extending the PSAs. Moreover, the participants of the consortiums have repeatedly raised the question of the need for clarity: whether the government plans to extend the relevant agreements or not. This concerns investments and planning for subsequent capital expenditures. We are interested in ensuring that the operation of facilities occurs at an effective level,” emphasized Almasadam Satkaliyev.