In 2014 share of profitable raw material of Kazakhstan on Karachaganak field to increase up to 36%

Kenzhebek Ibrashev, General Director PSA, said in his exclusive interview to www.primeminister.kz that capital invested into development of the Karachaganak oil and gas condensate has been fully recovered and this year distribution of shares of profitable raw material is expected to change in favor of Kazakhstan. “According to the forecasts, we expect further growth of total profitability of the project both for our country and for the contractor in person of Karachaganak Petroleum Operating B.V. (KPO),” Ibrashev said.

General Director explained that Kazakhstan’s incomes consist of two parts – profitable raw material and mandatory payment to the budget and taxes. Considering growth of share of profitable raw material and reduction of taxes of the contractors, total profit of Kazakhstan will increase by $70 million in 2014. “During a year we expect that Kazakhstan’s share in the product distribution will increase from the current 20% to 36%,” Ibrashev mentioned.

He said 10-11 million tons of oil and gas condensate a year is extracted on Karachaganak now and 8-9 billion cub.m. of gas is exported to the Orenburg gas refinery in Russia.--0—