The agreement signed on December 14, 2011, by the Republic of Kazakhstan and Karachaganak Petroleum Operating (KPO) consortium came into legal effect yesterday.

The agreement sets forth transferring a 10% interest in KPO to state-owned KazMunayGas (this assigned interest is to be proportionally distributed among all participants of the project), as well as withdrawal of all lawsuits and settlement of tax and customs claims.

Besides, the Republic of Kazakhstan will provide KPO with an additional 0.5 million tons per year quota for oil pumping through the Tengiz-Novorossiysk pipeline of the Caspian Pipeline Consortium. The quota will further be increased up to 2 million tons per year as the pipeline capacity rises.

Tags: Karachaganak Petroleum Operating B.V.