17 May 2011 17:12

Tax burden on KMG EP reaches limit - company head

MOSCOW. May 17 (Interfax) - The tax burden on JSC KazMunaiGas Exploration Production (KMG EP) has reached its limit, says the company's general director, Askar Balzhanov.

"We think that today's tax burden on KMG EP is still bearable but has nearly reached its limit," he said at the annual event "EP OPEN."

He said that the average ratio of the tax burden is 72% for KMG EP.

"The problem is that our oil fields are aging and oil production requires more and more investments each year," he said.

"Of course, we have to have monies to buy producing assets but large-scale exploration activities are of paramount importance for KazMunaiGas Exploration Production," Balzhanov added.