BG Denies Smuggling in Kazakhstan

Gas company British Gas on behalf on its CEO Frank Chapman dismissed yesterday allegations of smuggling in Kazakhstan as "routine" tax inquiries.
Kazakh police service claim that the oil and gas company Karachaganak Distribution Company might have illegally taken 1.47 billion pounds worth of gas out of the country between 2001 and 2003.
Chapman denied the accusations and insisted the inquiry revolved around a 5.5 million pounds tax bill resulting from a regular review carried out in March.
The inquiry comes at a difficult time because the Kazakh government has blocked a plan by BG to sell its 17 per cent stake in the huge Kashagan field in the Caspian sea.
The British company tied up a deal to dispose of the stake to Sinopec and China National Oil Corporation in March last year, but local partners exercised their rights to take it instead.