Kashagan contract is rewritten

Participants of the project made decision on creation of new joint operation company "North Caspian Operating Company BV" (NCOC), which will gradually substitute the unified operator Agip KCO company.

In accordance with the four signed agreements there will be amendments made in the contract of the Northern-Caspian project.

Since the present day the contract will be defined as "Agreement on division of production Joint company" (ADPJC). It was renamed with purpose. At the moment the contract is based just on the principles of production division, but partially on the principles of the agreements Taxes-Royalty (tax-royalty), otherwise called by form of concession agreement.

KazMunayGas doubled share in the project

Authorized body of the Republic of Kazakhstan in person of Ministry of energy and mineral resources and all company partners of international consortium within the agreement on division of production on the Northern Caspain (Eni (Italy), ExхonMobil (USA), JSC "NC "KAzMunayGas," Shell (Great Britain-Netherlands), Total (France), ConocoPhillips (USA) and INPEX (Japan) reached final agreement on new plan of development of the Kashagan project.

According to the agreement, share of participation of JSC "NC "KazMunayGAs" (KMG) increases from 8,33% up to 16,81%, and the shares of other shareholders of the agreement on production division on Northern Caspian (APD NC) is allocated as follows:

Eni 16,81%

ExхonMobil 16,81%

KMG 16,81%

Shell 16,81%

Total 16,81%

ConocoPhillips 8,40%

INPEX 7,56% .

to be continued