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Time - Man of the Year
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Time_Man_of_the_Year_Compact_Publishing_3YX-Disc-1_Compact_Publishing_1993.iso
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06019916.000
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1992-09-10
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THE WEEK, Page 24BUSINESSUnderground Partners
An American giant stakes out a big oil position in Kazakhstan
For the past year, scores of wildcatters and would-be oil
barons have been looking for ways to capitalize on the legendary
oil reserves in the Commonwealth of Independent States. But
when mighty Chevron signed an agreement with Kazakhstan last
week to develop the Tengiz field, one of the world's largest,
it marked the biggest partnership to date between a U.S.
corporation and a former Soviet republic. The plan calls for the
partners to invest $20 billion in the venture over the next 40
years. Chevron will have a 50% interest, but Kazakhstan will get
80% of the income, after the U.S. oil company pays taxes and
royalties on its share. The region could eventually produce as
much as 9 billion barrels of oil, which would help boost the
output of the former Soviet Union. Last year, overall C.I.S.
production fell 12%. The deal was nearly three years in the
making, and operation is expected to begin early next year.
Chevron's step could induce other large U.S. corporations to
invest in the politically fragile area.