Kazakhstan Accuses Oil Companies Of Tax Evasion

ALMATY, Kazakhstan (AP) — Kazakh authorities on Wednesday accused Italy's Agip KCO and a U.S. oil services company of evading millions of dollars in taxes in a case some say could alarm Western investors in the oil-rich Central Asian nation.

Agip, an affiliate of Italy's Eni that formerly led the project to develop the giant Kashagan oil field, and Parker Drilling Company International have failed to pay around $66 million in taxes, the financial crime police said in a statement.

The statement provided no specific details.

The project to develop Kashagan, which Agip estimated may contain up to 9 billion barrels of recoverable reserves, has been plagued in recent years by a dispute between the operators and the Kazakh government over production delays.

An Agip KCO spokeswoman said the company was unable to comment on the charges. Officials with Parker Drilling Company International could not be reached for comment.

In October, Kazakhstan signed a revised oil deal boosting the profits that state energy company KazMunaiGas will get from the consortium developing Kashagan.