Kazakhstan and a consortium of companies developing the Kashagan oilfield agreed to put off the start of production until 2013, the Minister of Energy and Mineral Resources Mr. Sauat Mynbayev said on 28 June.

Apart from fixing the schedule, the new agreement stipulates a new floating royalties structure for Kashagan requiring it to pay 3.5 percent of output to the government at global prices above $45 a barrel, 7.5-8 percent at $130, and 12.5 percent at $195.

The consortium agreed to the changes provided that it will be exempted from new taxes and duties Kazakhstan plans to introduce from next year for its key industries to boost revenues and foster diversification. The tax exemption issue will be considered by the Parliament.

Kazakhstan also rejected the consortium's proposal to extend its production sharing agreement (PSA) beyond 2041.
Under the earlier deal signed in January 2008, KazMunaiGas, Kazakhstan’s national operator, doubled its stake to 16.81 percent in Kashagan for $1.78 billion. Other shareholders cut their stakes on a pro-rata basis.
 

The Embassy of the Republic of Kazakhstan in the UK