Kazakhstan

Shell has been present in Kazakhstan since 1993. We have interests in the Karachaganak and Kashagan projects (Shell interest 29.25% and 16.81%, respectively), which generate revenues from oil and gas sales, and in the Pearls project (Shell interest 55%), which is in the exploration phase. Shell has decided not to progress the Pearls project. We also have a minority interest in the Caspian Pipeline Consortium, which allows for the transport of Caspian oil to the coast of the Black Sea.

Country Financial Analysis

The statutory corporate income tax rate in Kazakhstan is 20%. Taxpayers operating under a tax-stabilised regime in accordance with certain approved production-sharing agreements and subsoil use contracts have different tax rates, 30% for Kashagan and 33.5% for Karachaganak. The Kashagan project began production in November 2016 and started to generate revenues but reported a taxable loss during 2016-2019.

Tax paid in 2019 primarily relates to profit generated from the Karachaganak project which is also disclosed in our Payments to Governments Report for the same year. Additional taxes were also paid on income from ancillary services provided, which are not required to be reported in the Payments to Governments Report. They are included in the table above.