Kazakhstan tightens control over mineral development

The Kazakhstan government has terminated subsurface use contracts with
six small extracting companies. Another 34 companies received
notifications of violations, a VK special correspondent in Kazakhstan
reports.

The three biggest extraction projects in the Caspian region,
Kashagana, Tengiza, and Karachaganaka, which determine the oil-and-gas
policy of the state, were not affected by the punitive measures.

Lat year, the total sales of goods and services in oil and gas sphere
exceeded $3 billion in Kazakhstan. Nevertheless, the Kazakh state’s
share barely reached 11% of the total amount.

Finance police recently initiated a criminal case against the
consortium which runs the Karachaganaka field. This includes the
British BG Group, Italy’s ENI, the U.S.’s Chevron and Russia’s Lukoil.

The investors are accused of exceeding state-set limits for the
extraction of oil and gas. The lawsuit against them is worth $708
million. Market insiders believe these were just the first steps in
the tightening of the state’s extraction policies.