Kazakhstan’s Tengizchevroil Cuts Dividends To Finance Expansion

Kazakhstan's Tengizchevroil Cuts Dividends To Finance Expansion

ASTANA, June 15 (Reuters) – Tengizchevroil, Kazakhstan’s biggest oil producer, has reduced dividend payouts to its shareholders Chevron, ExxonMobil, LUKOIL , and KazMunayGaz, KazMunayGaz’s chief executive Sauat Mynbayev said on Thursday.

Mynbayev told reporters Tengizchevroil would also borrow about $20 billion to help finance the $37 billion expansion.

He did not say what the previous and new Tengizchevoil dividends were. The company is privately held and does not disclose dividend data.

Under the expansion plan Tengiz will increase output to 39 million tonnes a year (850,000 barrels per day) by 2022 from about 27 million tonnes currently.

Kazakhstan holds a 20 percent stake in the venture via state oil and gas firm KazMunayGaz. Chevron owns 50 percent, Exxon Mobil has 25 percent and Lukarco, controlled by Russia’s LUKOIL, the remaining 5 percent.

Kazakhstan and foreign partners also continue talks on another oil project, Karachaganak, over a financial dispute, Mynbayev said.

Lukoil said last year Kazakhstan had filed a $1.6 billion claim against the consortium developing the Karachaganak gas condensate field. Kazakhstan’s energy ministry has said the dispute is about calculations of the parties’ shares in the field’s output.

“I hope (resolving the dispute) will take less than a year (from now),” Mynbayev said.

Shell and Eni hold stakes of 29.25 percent each in the consortium while Chevron owns 18 percent, Lukoil has around 13.5 percent and KazMunaiGas holds 10 percent. (Reporting by Mariya Gordeyeva; Writing by Olzhas Auyezov; Editing by Andrey Ostroukh; Editing by Greg Mahlich)