Page 14 - FSUOGM Week 30

FSUOGM POLICY FSUOGM

Uzbekistan rolls out new service

contract for oil sector

UZBEKISTAN UZBEKISTAN’S Energy Ministry has market on a contractual basis. At the same time,
announced a new type of service contract in natural gas can be partially used for the contrac-
The aim is to which contractors are offered tax allowances and tor’s own needs.
attract more foreign payment deferments. The mechanism will apply to fields with
investment. The new legal mechanism is being introduced hard-to-recover and small hydrocarbon reserves
to increase hydrocarbon extraction. It is part of where a 50% share is currently held by the Uzbek
a long-term strategy to develop Uzbekistan’s fuel state or an Uzbek government entity. The list of
and power sector and attract international spe- fields where such contracts will be applicable
cialist firms to undertake projects in the country, will be compiled by the ministry based on pro-
officials said. posals from subsoil users and confirmed by the
Under the mechanism, external contrac- government.
tors, selected on a competitive basis, will be “The introduction of these new service con-
able to perform work to increase hydrocar- tracts will positively contribute to the develop-
bon production at their own expense and risk. ment of Uzbekistan’s oil and gas industry and
Contractors can then either sell their share of encourage increased hydrocarbons production
oil/gas condensate, in non-processed form, on mutually beneficial terms,” Jurabek Mirzam-
into the domestic market or process it within akhmudov, First Deputy Minister of Energy of
Uzbekistan’s territory for sale either domesti- Uzbekistan said. “We have a long-term strat-
cally or internationally. egy to develop our fuel and power sectors. This
These sales and processing options do not measure will focus efforts on fields with oppor-
apply to natural gas, which is sold to the domestic tunities for exploration and extraction.” ™

Kazakhstan sues US financier in $0.5bn

dispute with Moldovan investor

KAZAKHSTAN KAZAKHSTAN is suing New York financier legal proceedings initiated by or involving the
Daniel Chapman and Argentem Creek Partners Statis in which the fraudulent scheme was per-
The dispute originates where he serves as CEO, alleging he conspired petuated,” Justice Minister Marat Beketayev said
with Kazakhstan's with Moldovan businessman Anatolie Stati to in a statement.
alleged appropriation of fraudulently secure an arbitration award of over The Amsterdam Court of Appeal published
some oilfields. $0.5bn against the oil-rich country, according to its judgment in the case of Anatolie Stati et al v
documents filed with a New York court. the Republic of Kazakhstan in mid-July this year,
At stake is a $0.5bn award won by the Moldo- rejecting Kazakhstan’s appeal, therefore affirm-
van businessman, who claims his investments in ing recognition on Dutch soil of the $543mn
Kazakhstan were illegally nationalised. arbitral award issued by a Stockholm-seated
Kazakhstan has, in turn, accused Stati of arbitral tribunal in December 2013.
defrauding both the former Soviet republic and The Dutch court ruling is the latest devel-
the Swedish arbitrators who initially ruled in his opment in the Stati parties' long-running
favour in 2013, charges the Moldovan investor international battle to enforce the award for
and his companies deny. Kazakhstan's violations of the investor pro-
Further upping the stakes, in a lawsuit filed tection provisions of the Energy Charter
in the Supreme Court of the State of New York, Treaty. Back in 2013, a Sweden based arbi-
the government in Nur-Sultan accused Chap- tration tribunal found that Kazakhstan had
man and his companies of “conspiring with, and violated international law by failing to treat
aiding and abetting, a fraudulent scheme” led by the Stati parties' investments in Kazakhstan
Stati. fairly and equitably.
Kazakhstan is seeking a jury trial and pursu- Stati, the CEO and sole shareholder of Ascom
ing relief permitted by law, including compensa- Group, one of the award creditors, said that “the
tory and punitive damages. judgment also paves the way for the foreclosure
“This includes any damages arising from the of the attached shares in KMG Kashagan B.V.”. ™

P14 www. NEWSBASE .com Week 30 29•July•2020