Zhaikmunai re oil export duty

RNS Number : 5840V

Zhaikmunai LP

30 May 2008

 

'Zhaikmunai makes submission to Kazakh Ministry of Finance regarding proposed oil export duty'

London, 30 May 2008: Zhaikmunai L.P. ('Zhaikmunai') today announces that it has submitted two letters to the Kazakh Ministry of Finance regarding the announcement on 16 May 2008 of its intention to impose an export duty on crude oil exported from the Republic of Kazakhstan. The Ministry's announcement included a preliminary list of companies that would be subject to this new export duty ('the List') which included Zhaikmunai.

The first letter, submitted to the Ministry on 23 May 2008, notes that:

- Zhaikmunai is party to a Production Sharing Contract with the Republic of Kazakhstan (the 'Contract') dated 31 October, 1997

- Zhaikmunai believes that, under the terms of this Contract, it should not be subject to or affected by the newly-approved export duty on crude oil

- Zhaikmunai is of the view that it has been incorrectly included on the Ministry's List and has requested clarification that it is not subject to the new duty.

The letter also contains a detailed legal description of the Contract and the basis for the Zhaikmunai's legal arguments that it is exempt from the new export duty. 

The second letter, submitted to the Ministry today, 30 May, 2008, re-iterates and re-affirms the views of Zhaikmunai set out in its original letter of 23 May, 2008. It goes on to state that:

- Zhaikmunai intends to continue production and export of oil from Kazakhstan as planned during June

- To the extent that Zhaikmunai is obliged to pay export duties in respect of that production it will do so. But it will make such payments under protest and reserves all of its rights under the Contract and all applicable laws, pending clarification from the Ministry that it is exempt from the new export duty.

For further information contact

ING

Mark Martin             [phone]

Brunswick

Michael Harrison        [phone]

Carole Cable

For Russian Speakers:

Natalia Erikssen        [phone]

*****

The Partnership is the indirect holding entity, formed in the Isle of Man, of an independent oil and gas business (the 'Group') engaged in the exploration, production and sale of crude oil and gas condensate in northwestern Kazakhstan. The Group's licence area is the Chinarevskoye field, which is located in the northern part of the oil-rich Pre-Caspian Basin. The Group entered into a Production Sharing Contract with the Republic of Kazakhstan in 1997. Based on a reserve report prepared by Ryder Scott Company L.P., Zhaikmunai's estimated gross proven plus probable hydrocarbon reserves as at 1 July 2007 were 397 million boe. Zhaikmunai's GDRs are listed on the London Stock Exchange under the ticker symbol 'ZKM'.

Forward-Looking Statements: 

Some of the statements in this document are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations of the Partnership or its officers with respect to various matters. When used in this document, the words 'expects,' 'believes,' 'anticipates,' 'plans,' 'may,' 'will,' 'should' and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those suggested by any such statements. 

 

END

 

 

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