Astana will receive compensation of $1 billion from the shareholders of Karachaganak

© RIA Novosti / Press-service of JSC «NK Rosneft»go to fotobanka installation. Archival photoAstana will receive compensation of $1 billion from the shareholders of Karachaganak© RIA Novosti / Press-service of JSC «NK Rosneft»to the photobank

Kazakhstan has settled a dispute with Karachaganak shareholders, the consortium will pay the the Republic more than 1 billion dollars and will provide the loan for a period of 10 years for the construction of an infrastructure project in the amount of $ 1 billion, reported on Monday the press service of the Ministry of energy the Republic.

The Karachaganak gas condensate field, one of the largest in the world, under the terms of the agreement on production section (SRP). Shell and Eni are joint operators of the Karachaganak field, and both companies have equal shares of participation in 29,25%. Us Chevron and Russian LUKOIL owns 18% and 13.5%, respectively. From 1 July 2012 the joint company became part of the national company «KazMunaiGas», whose share in the project is 10%.

Energy Ministry of Kazakhstan reported earlier that between the Republic and the members of the Karachaganak project, there is disagreement related to the calculation of the share in the produce section. The Minister Kanat Bozumbayev said that according to the signed Memorandum the negotiations on this issue was completed on 1 September 2017. Later, they several times renewed.

«Today, the government of the Republic of Kazakhstan represented by the Ministry of energy, Ministry of Finance and the authority — of «PSA» LLP, as well as the shareholders of the Karachaganak project in the face of Eni, Shell, Chevron, LUKOIL and KazMunaiGas (hereinafter — the consortium) has reached an in principle agreement on a friendly settlement of the dispute according to the index of objectivity,» — said in the Ministry.

«The parties signed an agreement on the principles that set forth the major terms of the settlement: the consortium will pay the Republic of cash compensation in the amount of 1,111 billion dollars, there will be changes in the production-sharing arrangement OSRP that will provide Republic with additional income from the project in the amount of about $ 415 million until 2037 at a price of $ 80 per barrel, the consortium will provide the Republic a long-term loan for a period of 10 years for the construction of an infrastructure project in the amount of $ 1 billion or pay the equivalent value of the loan (in case of refusal of the Republic from the loan) in the amount of approximately $ 200 million», — reported in the Ministry.

The Ministry stressed that «the total cash value of the settlement is for the Republic more than $ 1.7 billion, of which in the coming years the state will receive about 1.3 billion».

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