None
EN
Shell’s Kazakhstan Surprise: When “Cost Recovery” Comes Back to Bite
['Walt Beyer', 'Is Sabotaging Our Life', 'Far The Worst Broadband Provider Ever', 'Shell Energy Broadband Service Is Appalling', 'Extremely Slow Shell Broadband']
Royal Dutch Shell Plc .com
A $4 Billion Reminder of Who Owns the GroundShell and its partners at the Karachaganak oil and gas field have just learned an uncomfortable lesson: production-sharing agreements are not a one-way street.
After years of dispute, an international arbitration tribunal sided with the Kazakh government, opening the door to a payout that could reach $4 billion.
The Art of Cost Recovery (According to Oil Majors)For decades, “cost recovery” has been one of the oil industry’s most versatile phrases.
It can stretch to cover delays, redesigns, overruns, and the occasional surprise that only emerges after billions have already been spent.
From the host state’s point of view, it sometimes looks like revenue quietly evaporating before it ever reaches the treasury.