Kazakh President advises to follow Azerbaijan’s example in gas operations

"Why the associated gas must belong to oil-producing company? This is not mentioned in the contract. They say Azerbaijan has solved this issue," Nazarbayev said in his speech at the meeting in Ak-Orde.

According to the Kazakh President, the associated gas is public property.

"The associated gas is worth nothing. Owner does not spend money to produce it," Nazarbayev said.

The Kazakh president instructed Prime Minister Karim Masimov to go into the issue, especially while concluding new contracts.

According to PSA contract signed 1994, Azerbaijan receives associated gas from the Azeri-Chirag-Guneshli field free of charge. In 2009, Azerbaijan received about four billion cubic meters of associated gas compared to nearly 2 billion cubic meters in 2008 from International Operating Company (AIOC) which deals with development of the Azeri-Chirag-Guneshli field.

/Trend Capital/