RCS - Nostrum Oil & Gas - Update on Kazakhstan withholding tax disputes

Nostrum Oil & GasAnnouncement

03/02/2026 09:45

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RNS Number : 5102R  Nostrum Oil & Gas PLC  03 February 2026

 

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FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF THAT JURISDICTION

 

FOR IMMEDIATE RELEASE

 

 

London, 3 February 2026

 

 

Nostrum Oil & Gas PLC provides an update regarding Kazakhstan withholding
tax disputes

 

Nostrum Oil & Gas PLC (LSE: NOG) (the "Company" and together with its
subsidiaries, the "Group"), an independent oil and gas company engaging in the
production, development and exploration of oil and gas in the pre-Caspian
Basin of Western Kazakhstan, provides an update on withholding tax disputes
involving its principal operating subsidiary, Zhaikmunai LLP ("ZKM"), as
referred to in Note 24 to its interim condensed consolidated financial
statements for the nine months ending 30 September 2025.

ZKM is currently engaged in disputes with the Republic of Kazakhstan ("RoK")
tax authorities challenging the results of such authorities' tax audits of ZKM
for 2018, 2019, and 2020. The tax authorities have asserted withholding tax
claims for such three year period totalling approximately USD 71 million
(comprising USD 52 million relating to the 2018/2019 audits and USD 19 million
in potential claims for 2020), which the Company believes contradict
applicable laws and treaties and arbitral, administrative and judicial
practice. Since commencement of operations in Kazakhstan in 1997, ZKM has paid
in aggregate more than USD 1.24 billion in taxes, royalties and other payments
to the RoK.

On 28 January 2026, ZKM was informed that the RoK Ministry of Finance Appeal
Board has scheduled a hearing on 5 February 2026 to consider ZKM's appeals of
the tax audits for 2018 and 2019, following the resumption of proceedings
after a prior period of suspension. The Company expects that the Appeal Board
will consider all relevant facts together with national and international
laws, and take into account all relevant treaties, including the relevant
double tax treaty between the Kingdom of the Netherlands and RoK, pursuant to
which the Dutch tax authorities have initiated a mutual agreement procedure
("MAP") in respect of the pertinent claims. The outcome of the hearing remains
uncertain and may result in further procedural steps in accordance with
applicable laws rather than a final determination.

The scheduling of the hearing represents a further step in the progression of
the dispute. The Company continues to monitor developments closely and to take
appropriate steps to protect its interests.

The Company is incorporated under the laws of England and Wales and listed on
the London Stock Exchange. Its investor base is international, with investors
predominantly based in the United States. In addition, the Company's wholly
owned subsidiary Nostrum Oil & Gas Finance BV, incorporated in the
Netherlands, is the issuer of the Group's senior secured notes and senior
unsecured notes.

The Company will continue to defend its interests and to assess all available
legal remedies.

Further updates will be issued as appropriate.

 

LEI: 2138007VWEP4MM3J8B29

 

Further information

For further information please visit www.nostrumoilandgas.com
(http://www.nostrumoilandgas.com)

 

Further enquiries

Nostrum Oil & Gas PLC
 

Yelena Zhuravleva, CFO

ir@nog.co.uk (mailto:ir@nog.co.uk)
 
 

 

TEAM
LEWIS
 
 

Galyna Kulachek

+ 44 (0) 20 7802 2664

nostrum@teamlewis.com

 

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent mixed-asset energy company with
world-class gas processing facilities and export hub in north-west Kazakhstan.
Its shares are listed on the London Stock Exchange (ticker symbol: NOG). The
principal producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye
field which is operated by its wholly-owned subsidiary Zhaikmunai LLP, which
is the sole holder of the subsoil use rights with respect to the development
of the Chinarevskoye field. The Company also owns an 80% interest in Positiv
Invest LLP, which holds the subsoil use rights for the "Kamenskoe" and
"Kamensko-Teplovsko-Tokarevskoe" areas in the West Kazakhstan region (the
Stepnoy Leopard fields).

 

Forward-Looking Statements

Some of the statements in this document are forward-looking. Forward-looking
statements include statements regarding the intent, belief and current
expectations of the Company or its officers with respect to various matters.
When used in this document, the words "expects", "believes", "anticipates",
"plans", "may", "will", "should" and similar expressions, and the negatives
thereof, are intended to identify forward-looking statements. Such statements
are not promises nor guarantees and are subject to risks and uncertainties
that could cause actual outcomes to differ materially from those suggested by
any such statements.

 

No part of this announcement constitutes, or shall be taken to constitute, an
invitation or inducement to invest in the Company or any other entity, and
shareholders of the Company are cautioned not to place undue reliance on the
forward-looking statements. Save as required by the relevant listing rules and
applicable law, the Company does not undertake to update or change any
forward-looking statements to reflect events occurring after the date of this
announcement.

 

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