Johanna Popjanevski - The Central Asia-Caucasus Analyst

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22Central Asia-Caucasus Analyst, 12 December2007together political figures, parliamentarians,scientists and journalists from Azerbaijan,Kazakhstan, Kyrgyzstan and other Turkishspeakingcountries. According to the Foundation’spresident Nusrat Mammadov, participants in theconference will hear the reports on the Turkicworld’s renowned political figures including HeydarAliyev, Mustafa Kamal Ataturk, as well as thePresidents Ilham Aliyev of Azerbaijan, NursultanNazarbayev of Kazakhstan, Kurmanbek Bakiyev ofKyrgyzstan and Emomali Rahmon of Tajikistan.He added that the book “Founder and Creator ofModern Azerbaijan” dedicated to national leaderHeydar Aliyev published in Kazakh language willbe presented in the framework of the conference.The first conference on the role of political leadersin development of the Turkish speaking nations washeld in July 2007 in Kyrgyz capital Bishkek.KAZAKHSTAN WANTS $7 BILLION FORKASHAGAN DELAYS30 NovemberKazakhstan demanded $7 billion in compensationfrom an Eni-led consortium on Friday for delays indeveloping the huge Kashagan oilfield, a sourceclose to the talks said as a deadline for a settlementwas hours away. Kazakhstan has set the November30 deadline for its negotiations with the group toresolve a long-running dispute over cost overrunsand production delays at the Caspian Sea oilfield,but some officials have said talks may last longer."(We demand) more than $7 billion. That's for thedelays," said the source, who declined to beidentified. Eni had no immediate comment.Kazakhstan had previously demanded more than $10billion, according to other sources. Kazakhstanheaped further pressure on Western investors onFriday as Deputy Finance Minister DauletYergozhin announced it planned to introduce a newoil production tax to boost budget revenues,probably starting in 2009. Kashagan, with itsestimated 38 billion barrels of oil in place, lies at theheart of Kazakhstan's plans to triple its crude outputby 2017 as the former Soviet state fast emerges as anew source of non-OPEC oil. But its developmenthas been plagued by cost overruns and delays whichhave irked Kazakhstan. It is now due to startproduction in 2010, instead of 2005 originally. Itscosts have escalated from $57 billion to $136 billion.Speaking earlier in the capital Astana, Yergozhinsaid a high-profile consortium delegation was in theKazakh capital on Friday to discuss the future of theworld's biggest oil find in three decades. "We arecontinuing our talks. November 30 is not over yet,"he said. "I think we still have time. They are stillhere. ... We are discussing many issues." Officialshave said, however, that talks might continue untilthe end of the year. Sources close to the deal havetold Reuters that one of the consortium membersconsidered pulling out altogether from thecomplicated project. Yergozhin said Kazakhstanwas discussing a possible scheme to secure a share ofprofit from Kashagan earlier than planned and stillwanted Kazakh national oil firm KazMunaiGas tobe co-operator of the field, currently managed byENI. "We've said that KazMunaiGas should be cooperator,"he said. "Kazakhstan cannot choose theoperator unilaterally. The operator is chosen by allconsortium companies." Kazakhstan has accusedEni and its partners -- Royal Dutch Shell Plc, ExxonMobil Corp, Total, Conoco Phillips and Japan'sInpex Holdings Inc -- of ecological and otherviolations at the Kashagan field. Kazakhstan putfurther pressure on the Eni-led group and alarmedother investors in the oil and gas business bypassing legislation allowing the government tobreak contracts with foreign companies. (Reuters)MAN DETAINED IN DAGESTAN ONSUSPICION PLANNING ATTACK ONPOLLING DAY - POLICE SPOKESMAN30 NovemberA resident of Khasavyurt in Dagestan was detainedon Friday morning on suspicion of planning a terrorattack on the day of the elections to the Duma,December 2. A search in the suspect's home led tothe discovery of a suicide bomber's belt prepared tobe used, a spokesman for the Khasavyurt city policedepartment told Interfax. (Interfax)LEADER OF AZERBAIJANI DIASPORA INGEORGIA ARRESTED FOR TWO MONTHS1 DecemberThe Tbilisi City Court has handed down a twomonthpreliminary arrest on DashgynGulmamedov, the leader of the National Assemblyof Azerbaijanis in Georgia. Gulmamedov, who leadsthe campaign staff of Georgian presidentialcandidate Fazil Aliyev, has been charged withpropagating ethnic discrimination. Lawyer GiorgiZumbadze told journalists Gulmamedov had beenplaced in the Ortachala prison. "There is noevidence to substantiate this arrest and this ruling ispolitically motivated. An appeal will be filed on thiscase," the lawyer said. Aliyev had said earlier thatGulmamedov's arrest had been aimed at exerting
Central Asia-Caucasus Analyst, 12 December 2007 23pressure on him as a presidential candidate.Georgian law enforcement agencies detainedGulmamedov on November 27. (Interfax)KAZAKHSTAN PICKED TO CHAIR OSCE1 DecemberKazakhstan will assume the presidency of theOrganization for Security and Co-operation inEurope (OSCE) in 2010, the body's council hasdecided. The Central Asian country will be the firstex-Soviet republic to chair the human rights anddefence watchdog. The move has been criticised byHuman Rights Watch (HRW), which saysKazakhstan's human rights record is not up toscratch. The US says Kazakhstan has pledged toimprove its electoral system by 2009. "These arevery important commitments by the government ofKazakhstan. We intend to see these commitmentsare implemented," said US Under Secretary of Statefor Political Affairs Nicholas Burns.But Human Rights Watch was pessimistic aboutthe prospects for reform in Kazakhstan."Kazakhstan doesn't observe OSCE commitmentsat home. Entrusting in Kazakhstan the leadership touphold the organisation's human rightscommitments is a singularly bad idea," said HollyCartner, Europe and Central Asia director at theUS-based human rights organisation. Finland is tohold the OSCE presidency in 2008, followed byGreece in 2009. (BBC)PKK REPORTEDLY PLANNING MOVE TOAZERBAIJAN1 DecemberThe Kurdistan Workers Party may be planning amove to Azerbaijan from northern Iraq, Turkishintelligence reports say. Leaders of the party,usually known by its initials, PKK, have beendiscussing the move with Armenian officials,Today's Zaman reported. They would relocate tothe Nagorno-Karabakh region, which is underArmenian control. The Turkish parliament recentlyauthorized military operations across the borderinto Iraqi Kurdistan. In response, the United Statesand the Iraqi government have put pressure onKurdish leaders to deny the PKK a base. A formerPKK member has told Turkish intelligence thatmost of the camps in Iraqi Kurdistan have beenevacuated. (UPI)KAZAKHSTAN OIL TAX CRACKDOWN2 DecemberKazakhstan warned international oil companies atthe weekend to stop living “in ancient times” as itprepared totightenthefiscal regimeat oilfieldsand increase state ownership of its flagship CaspianSea development. Daulet Yergozhin, Kazakhstan’sdeputy finance minister, said, draft revisions to thetax code, to be debated in parliament early nextyear, would increase budget revenues, be “simple toadminister and collect and very understandable foroil and mineral producers”. There are plans tointroduce a new blanket tax covering all oilproduction to replace existing royalties and rentscharged only on oil exports.Analysts said the tough tax proposals reflectedwidespread frustration in Kazakhstan, led byPresident Nursultan Nazarbayev, about theadvantageous contracts secured by foreign oilcompanies in the 1990s when oil prices were low andthe republic was sunk in an economic recession thatfollowed the collapse of the Soviet Union. “We aretrying to catch up with the times. If investors wantto live in ancient times it may suit them, but it doesnot suit us,” Mr Yergozhin told the FinancialTimes. Foreign investors would be consulted aboutthe tax amendments, he said. His comments cameas Kazakhstan appeared close to asserting greatercontrol over the giant Kashagan field as part of asettlement of a dispute with an oil consortium ledby Eni of Italy about surging costs and productiondelays at the giant Caspian Sea project.KazMunaiGas, Kazakhstan’s state oil company, saidin a statement that four out of five members of theEni group, which includes ExxonMobil, Shell,Total, ConocoPhillips and Inpex of Japan, hadagreed in principle to dilute their shares inKashagan to allow it raise its interest to match thatof a “large participant”.Industry insiders said KazMunaiGas wasnegotiating to raise to 30 per cent its 8.33 per centinterest in Kashagan, one of the world’s biggestuntapped oilfields. Exxon is understood to havedemanded an extension of the Kashagan contractbeyond 2041 in exchange for handing shares toKazMunaiGas. Exxon could not be reached forcomment. A deadline of December 20 was set forthe finalisation of a settlement at Kashagan duringtalks last week, the Eni group said in a statement atthe weekend. (FT)TURKMENISTAN STARTS WORK ONNORTH-SOUTH RAIL LINK TOKAZAKHSTAN AND IRAN2 December
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Johanna Popjanevski - The Central Asia-Caucasus Analyst

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