BG Group Completes Karachaganak Agreement With Kazakh Government

BG Group Plc completed an agreement giving Kazakhstan 10 percent of the Karachaganak oil project and exempting the venture from paying export duty.

The government acquired the stake for $2 billion in cash and $1 billion in non-cash payments, BG Group said today in a statement. Tax of $1 billion is payable on the gain from the sale, it said. The Karachaganak partners won’t pay export duty for the remaining 26 years of their production sharing deal.