BG Group reported with the Republic of Kazakhstan ("the Republic") and the other contracting companies in the giant Karachaganak gas-condensate field in north-west Kazakhstan, completion of their agreement which was initially signed on 14 December 2011.*
Under the terms of the agreement the Republic has acquired a 10% interest in the Karachaganak Final Production Sharing Agreement (FPSA) for $2.0 billion cash and $1.0 billion non-cash consideration (pre-tax) including the final and irrevocable settlement of all cost recovery claims. Tax of $1.0 billion is payable on the gain arising on the disposal. The Republic's interest in the Karachaganak FPSA will be managed by the national oil company, KazMunaiGas (KMG).