* Kazakhstan raised objections to revenue share in 2016
* Former Soviet state expects one-off payment
* Minister sees compromise on profit share calculation
By Mariya Gordeyeva
ASTANA, May 17 (Reuters) - Kazakhstan aims to settle itsprofit-sharing dispute with energy majors developing theKarachaganak gas condensate field within a month, the energyminister said on Thursday.
The former Soviet republic expects a large one-off paymentfrom the companies and a higher share of future revenues fromthe development of one of the Central Asian nation's biggesthydrocarbon fields, Kanat Bozumbayev told Reuters.
Kazakhstan said in 2016 it disagreed with how the consortiumled by Italy's Eni and BG, which has since been takenover by Anglo-Dutch firm Shell, calculated the parties'shares in the income from the Karachaganak field.
Settling the dispute which according to Lukoil,another partner in the project, involved a $1.6 billion claim,could pave way for expanding the project at Karachaganak andsecure higher revenue for the Kazakh government.
"The talks are in the final stage. There are optimisticexpectations that they will be concluded within a month," theminister said in an interview. "We have agreed the keyprinciples, (but) there are technical nuances."
Foreign firms are developing Karachaganak under a productionsharing agreement that allows them to recover some costs beforesharing a part of the remaining revenue with the state.
But arguments about what costs are eligible for recovery canbecome tricky and technical.
CALCULATION COMPROMISE
Bozumbayev said that Kazakhstan was seeking "compensationfor the past years", saying the figure was "more than hundredsof millions of dollars" without naming a precise number.
He said Kazakhstan had also "demanded that they change theway" profit share for the parties was calculated in future.
"We can say we have almost agreed the sum of thecompensation, and reached a compromise on the calculationmethod. Some of our demands are being met, roughly a half ofthem," the minister said.
Bozumbayev said there could also be other forms ofcompensation, such as a long-term loan for constructing an oilrefinery and supplies of oil and gas for the domestic market. Inaddition, he said there could be other investment commitments.
Eni and Shell each own 29.25 percent of the Karachaganakproject in northwest Kazakhstan, while Kazakhstan’s KazMunayGazowns 10 percent, U.S. Chevron Corp has 18percent and Russia's Lukoil owns 13.5 percent.
Karachaganak produced 4.2 million tonnes of gas condensate,a product marketed the same way as oil, in January-April, 0.7percent less than in the same period of 2017.(Writing by Olzhas AuyezovEditing by Edmund Blair)
