The ownership of BG Group’s biggest oil and gas asset is under discussion as KazMunaiGaz, the state energy company of Kazakhstan, seeks a share in Karachaganak, a gas and condensate field that accounts for almost a fifth of the British company’s oil and gas output.

KazMunaiGaz wants part of the giant field north of the Caspian Sea, which since 1995 has been under the control of foreign oil companies and which last year produced more than 120 million barrels of hydrocarbons. In January the Kazakh Government doubled its stake in Kashagan, another giant Caspian oilfield, to 16 per cent after lengthy negotiations with a consortium of foreign companies.

Karachaganak is the only significant oil and gas asset in which the Kazakh State does not have a shareholding and, according to Timur Kulibayev, chairman of KazEnergy, the Kazakh oil industry association, KazMunaiGaz wants to rectify the situation. A change in ownership would require that existing shareholders, including BG, give up part of their stake. For BG, Karachaganak represents 18 per cent of the British company’s output, which averaged 604,000 barrels per day last year.

Since 1995, Karachaganak has been controlled by foreign companies under a production-sharing agreement (PSA) that gives the companies a licence to extract oil and gas and sets a formula under which profits from oil sales are shared between the company and the Government. Under the present PSA, which dates from 1997 and runs for 40 years, BG and Eni, of Italy, have 32.5 per cent each, Chevron has 20 per cent and Lukoil, of Russia, holds the remaining 15 per cent.

Speaking to The Times in Almaty, Mr Kulibayev said that the role of the national oil company was increasing. “Karachaganak is a very good example,” he said. “KazMunaiGaz would like to participate and now it is the subject of negotiation.”

He cited Tengiz, another giant oilfield operated by Chevron under a PSA. “KazMunaiGaz has a 20 per cent interest in the Tengiz project and the project has been successful and KazMunaiGaz receives a dividend,” he said. “The Government receives taxes and the national company their due dividend.”

When asked what shareholding in Karachaganak would be appropriate for KazMunaiGaz, he said: “Whatever interest would allow us to be equal to other partners. We speak of between 10 per cent and up to 20 per cent. KazMunaiGaz has been negotiating.”

Fiscal pressures on foreign operators are rising, including a new oil export duty and a change in the corporate tax regime applied to energy companies. Mr Kulibayev said that companies operating under PSAs would be exempt from the company fiscal changes, but the Karachaganak consortium already is challenging the export duties, saying their imposition breaches their agreement with the Kazakh Government.

Mr Kulibayev said that the Government wanted a uniform tax regime that would not deter investment in Kazakhstan.

BG Group declined to comment yesterday on negotiations.

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