Kazakhstan's largest oil producer Chevron Corp.-led (CVX) TengizChevrOil and existing oil production ventures under production sharing agreements will be exempt from new natural resource extraction tax, the Kazakh Economy Minister was quoted by Kazakhstan Today news agency as saying Monday.
Sultanov was quoted by the news agency as saying that royalties would be replaced by the extraction tax linked to prices on world markets. The new tax code draft was presented to Kazakh lawmakers in the capital Astana.
Sultanov was quoted as saying that about 44 million metric tons of oil produced in Kazakhstan would be affected by the extraction tax.
Stability of tax regime would be canceled for all the contracts except for Tengizchevroil and existing oil production operating under PSAs, Sultanov said.
The new tax code, which will increase tax burden on natural resources sectors, is expected to be adopted this year.