LONDON -(Dow Jones)- BG Group PLC (BG.LN) has suspended the formal arbitration process in a dispute over export duties payable by its operations in Kazakhstan and has resumed discussions directly with the Kazakh government with the aim of finding an amicable solution, BG's Chief Executive Frank Chapman said Wednesday.
The consortium operating the large Karachaganak gas and condensate field - BG Group, Eni SpA (E), Chevron Corp. (CVX) and Lukoil Holdings (LKOH.RS) - had been seeking through international arbitration a refund of over $1 billion for oil export duties it believes it shouldn't have had to pay.
"The [Kazakh] government has expressed a strong desire to try to find an agreement on this...and we would like to find an amicable solution," Chapman said.
Company Web site: http://www.bg-group.com
-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com