Kazakhstan will not compensate NCOC expenses for production renewal at Kashagan

Almaty. January 6. KazTAG - According to production share agreement Kazakhstan will not compensate the expenses of North Caspian Operating Company (NCOC) on production renewal at Kashagan, reports "Ak Zhaiyk" newspaper.
In his written reply to the questions of the newspaper, Uzakbay Karabalin, First Vice Minister of Energy reported that "the agreement on regulation between Kazakhstan and contractor companies of the North Caspian Project was signed on December 13 2014 regulating all the issues connected with the "primary" pipeline".
"The contractors and Kazakhstan agreed that all the costs connected with designing, production, technical maintenance, exploitation of "primary" pipelines are non refundable, thus Kazakhstan will not face any loss".
According to the publication, according to preliminary estimation, the expenses for the pipelines replacement will make up approximately $3 bln.

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