Kazakhstan - 03

Kazakhstan: Astana’s Dispute with KPO: Considerations and Implications

Earlier this week, LUKoil revealed to investors that the Kazakh government is demanding $1.6bn from the international consortium KPO, which runs the flagship Karachaganak oil and gas field, due to a dispute over profit sharing between the companies and the government. Notably, KPO has had recurrent disputes with Astana. In 2010, after three years of aggressive claims, the Kazakh government got a 10% stake in the company. In October 2015 Western media suggested that the government was again accusing the consortium of breaking the Final Production Sharing Agreement (FPSA) by inflating expenses and possibly overstepping environmental and labor regulations. In November…

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