Kazakhstan will balance the interests of foreign investors and the state as it tries to maximise benefits from its natural resources, President Nursultan Nazarbayev said late on Friday.
Western oil companies complained after the oil-rich Central Asian state introduced higher taxes for future oil and gas projects late last year and said it would impose stricter rules for production sharing agreements (PSAs).
The government has since maintained a take-it-or-leave-it stance, saying it will not retreat or change the new rules. But, following a regular meeting with investors on the shores of the Caspian Sea, Nazarbayev hinted at a softer line.
"Our friends (the foreign investors) advised us: if you want to attract further investment, don't create barriers, don't change (the rules)", Nazarbayev told reporters after a session of the Foreign Investors' Council.
"Of course, we will pay attention", he added.
"At the same time, we will consider international experience and the interests of Kazakhstan in order to maximise the state's benefits from our natural resources," Nazarbayev said.
Kazakhstan, keen to develop its oil industry, offered low taxes and favourable legislation to investors shortly after the ex-Soviet state gained independence in 1991.
The country has succeeded in attracting about $25 billion in investments but it has also come under criticism for corruption.
Prosecutors in New York are trying US businessman James Giffen, who arranged contracts with oil majors, on accusations that he bribed Nazarbayev more than $60 million. Nazarbayev and Giffen deny corrupt practices.
Kazakh oil and gas projects involve ExxonMobil, ChevronTexaco, Shell, BP, BG, Total and ENI.
In 2003, after several years of impressive economic growth when GDP increased by 10-11 percent a year, the Kazakhs decided to amend their tax laws, including the new oil exports tax.
The government also said state-owned KazMunaiGas would have a 50 percent stake in all new offshore oil projects.
Investors reacted by saying the new taxes made future projects unviable and threatened the government's ambitious development plans.
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