Kazakhstan cancels PSA on construction of gas processing plant at Karachaganak

The Kazakh Energy Ministry informed in a statement that the implementation of the project for the construction of a gas processing plant at the Karachaganak oilfield under the current Production Sharing Agreement (PSA) with the engagement of the project shareholders was canceled.

At the current stage, the Ministry is developing alternative mechanisms to implement the project outside the Agreement, with the possibility of involving national companies, reads the statement. 

Earlier it was reported that Karachaganak shareholders demanded an additional one billion US dollars for the gas processing plant construction.