Kazakhstan is considering imposing an oil export tax on Chevron¡¯s Tengiz field, broadening a campaign to milk more revenues from the petroleum industry.

When the $109.81 per tonne oil export duty was launched in May, Kazakhstan said big foreign oil projects shielded against adverse tax changes by contracts signed in the 1990s would be exempt. But this month KPO, the oil group led by BG and Eni developing the huge Karachaganak field, was forced to pay the duty.

Daulet Yergozhin, Kazakhstan¡¯

s deputy minister of finance, said lawyers had exploited loopholes in KPO¡¯s contract to impose the export tax and were now seeking similar openings in the Tengiz contract.

¡°We are in talks with Tengizchevroil [the joint venture operating the field].

¡°Lawyers are examining the contract. If they say we cannot legally impose the export tax, I will hand the oil group a letter exempting them from the tax,¡± he said.

Tengizchevroil said in a statement it ¡°strongly believes it is exempt from the export duty in accordance with the terms of its contract with the Republic of Kazakhstan¡±.

Karachaganak said KPO was paying the export tax ¡°under protest¡± while ¡±assessing all legal options¡±.

Mr Yergozhin said the export duty was deductible against other taxes and would ¡°not harm the economics¡± of the Karachaganak project.

¡°We are not Venezuela. We are not asking them to give up rights to the fields. We are not trying to steal anything.

¡°We ask them to pay taxes so that there is a fairer balance of interests at oilfields,¡± he said.

Analysts said the financial difficulties hitting Kazakhstan in the wake of the US subprime crisis had spurred the government to introduce oil export duties ahead of a package of tax reforms coming into force in early 2009.

But Mr Yerdozhin said the oil export duty had ¡°nothing to do with the credit crunch¡±.

Kazakhstan¡¯s strategy is to shift more of the tax burden on to the oil and mining industries to compensate for planned tax reductions in other, less profitable sectors.

An oil production tax, to be introduced next year will be simple to administer, limiting opportunities for corruption by both taxpayers and collectors, he said.

Corporate income tax will be reduced to about 20 per cent from 30 per cent.