The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Investors heed oil funding row

A dispute over the funding of oil pipeline development pinpoints increasing tension between foreign investors and the Kazakh authorities that may hamper the development of offshore Caspian oil resources.

Oil fields critical to Kazakhstan

IT WAS ONE of the worst rows in the seemingly never-ending series of spats between the government of Kazakhstan and the small band of foreign multinationals that invest in the country.

In November 2002 TengizChevroil (TCO) stopped production at the Tengiz oil field in north-western Kazakhstan, the republic's biggest, after a row broke out over how to fund the next stage of development. Until recently proceeds from exporting production through a ragtag collection of trains, tankers and swap deals has financed development.

TCO is an international consortium led by US oil major ChevronTexaco that has been working the 9-billion-barrel oil field since 1993. Tengiz is the republic's cash cow and one of the biggest investments in the former Soviet Union.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree