Archive for February 5th, 2008
Oil Chronicles: News from the Caspian Sea
From the Kazakhstan International Business Magazine - the original article can be found here.
Against the background of high world energy prices this year, the Kazakh oil and gas sector has maintained target growth rates: oil output grew by 2.1% in the first 10 months of the year (its exports grew by 11.5%), gas condensate output grew by almost 18% and gas output by 14.1%. Nevertheless, despite the favourable price situation, the autumn of 2007 has offered foreign investors unpleasant surprises too.
New Amendments to the Old Law…
Astana adopted amendments to the Law On Subsoil and Subsoil Use in late October, which toughened up requirements set for mining companies and, as a result, changed the nature of relations between Kazakhstan and foreign investors.
In particular, one of the amendments stipulates that “if the actions of a mining company, while conducting mining operations in deposits/mines that have strategic importance, lead to a considerable change in the economic interests of the Republic of Kazakhstan, posing a threat to national security, the authorised body has the right to demand that conditions of contracts be changed and/or amended to restore the economic interests of the Republic of Kazakhstan”.
These amendments also envisage expanding a list of reasons for terminating a mining contract by amending Article 45-2.2 of the Law On Subsoil and Subsoil Use.
For example, a contract can be terminated:
* if within two months of receiving notification the mining company fails to agree to hold talks to change the provisions of the contract in writing or refuses to hold these talks;
* if within four months of receiving the mining company’s agreement to hold talks, the parties fail to conclude an agreement; or
* if within six months of achieving a coordinated decision to restore Kazakhstan’s economic interests the parties fail to sign amendments to the contract.
News Roundup - February 5, 2008
The Moscow Times: Kazakhstan hikes gas transit prices
Gazprom agreed to pay $1.40 for shipping 1,000 cubic meters of gas 100 kilometers in 2008, Kazakh gas-pipeline monopoly KazTransGaz said in an e-mailed statement. The 30-cent increase took effect Jan. 1 and will not change this year, the company said…
The Moscow Times: ArcelorMittal faces $1Bln in taxes
ArcelorMittal, the world’s biggest steelmaker, is planning to appeal a court ruling in Kazakhstan that would force its local division to pay 132.4 billion tenge ($1.1 billion) in back taxes and fines…
EurasiaNet: Kazakhstan: Government keeps legal heat on disgraced former presidential son-on-law
Shortly after Aliyev’s trial in absentia on racketeering and kidnapping charges ended with a conviction, a new legal case began in a closed military court, supposedly relating Aliyev’s activities as deputy chairman of the Committee for National Security Committee (KNB)…
Gazeta.KZ: Gold and currency reserves of Kazakhstan grew in January by 5,9%
International reserves of the country as a whole (in current prices), including the National Fund money (according to the preliminary information, USD 21 555,9 mln), grew by 5,9% and amounted USD 40 717,2 mln, reports the agency with reference to the National Bank of the Republic of Kazakhstan information.
TREND: KazMunayGaz decreases gas transportation in 2007
Kazakhstan’s national company KazMunayGaz decreased gas transportation in 2007, the company said to Trend…
TREND: Revenues of KazMunayGaz increase in 2007
The revenues of Kazakhstan’s national company KazMunayGaz increased by 5% in 2007, the company reported to Trend…
TREND: KazMunayGaz increases oil production, refining and transportation
Kazakhstan’s national company KazMunayGaz increased oil production in 2007, the company reported…
e-Travel Blackboard: Kazakhstan’s Air Astana records 46% growth in passenger traffic
Air Astana achieved a whopping 46 percent growth in passenger traffic in 2007. The carrier’s revenue also increased 48 percent over last year, compared to 2006…
EurasiaNet: Azerbaijan: SOCAR’s westward expansion could hamper Russia’s Caspian plans
SOCAR, Azerbaijan’s state energy company, is aiming to become an influential regional player in the Caspian Basin’s already crowded field. The company’s emergence may bolster Azerbaijan’s ability to resist potential bullying by Russia, which currently enjoys a dominating advantage in the regional game over energy development and exports…
TREND: Azerbaijan and EU come to agreement on Trans-Caspian gas pipeline
Azerbaijan and European Union (EU) has reached an agreement to support the project of the Trans-Caspian gas pipeline. Elmar Mammadyarov, the minister of foreign affairs of Azerbaijan and Dmitri Rupel, the president of EU and the minister of foreign affairs of Slovenia said on 4 February in Baku after the negotiations…
The Oil and the Glory: Becoming quieter on the Caspian
The prize in the Pipeline War is Turkmenistan. Russia and China — especially the former — are far ahead of the West in the contest. One reason has been their willingness to look the other way on the issues of human rights, rigged elections and presidents for life…
Itar-Tass: French premier to visit Kazakhstan for talks on cooperation
French Prime Minister Francois Fillon will make an official visit to Kazakhstan on February 8, Kazakhstan’s Foreign Ministry spokesman Yerzhan Ashikbayev said…
Associated Press of Pakistan: Pakistan, Kazakhstan to strengthen defence ties
Pakistan and Kazakhstan have reiterated their desire to further promote and strengthen bilateral cooperation particularly in the area of defence…
Financial Times: Frequent traveller: Arrivals are best
Johannes Sittard, 64, is chief executive of Eurasian Natural Resources Corporation, the Kazakhstan-based mining group, with headquarters in London. The company joined the London Stock Exchange last year, raising £1.36bn ($2.7bn) through the sale of new shares, valuing it at approximately £6.8bn…
