Kazakhstan may impose oil duty from 2008

ASTANA (Reuters) – Kazakhstan may impose an oil export duty as soon as mid-2008 to stabilise domestic supplies, a senior government official said on Monday, in a development likely to worry potential newcomers to its oil business.

Officials have said that Western oil and gas companies’ existing operations in the Central Asian state will not be affected by the export duty as their production sharing agreements will not be changed.


New agreements, however, will stipulate flexible oil tax regimes including liability for the export duty.

Asked by Reuters on the sidelines of a government meeting if the duty would be introduced from next year as previously announced, Deputy Energy Minister Lyazzat Kiinov said:

“No, earlier. This year,” adding that it could happen as early as this summer. Kazakhstan had previously said it wanted the duty from January 2009.

Reuters