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Nostrum Oil & Gas PLC's subsidiary, Zhaikmunai LLP (ZKM), is engaged in disputes with Republic of Kazakhstan (RoK) tax authorities regarding asserted withholding tax claims totalling approximately USD 71 million for the 2018, 2019, and 2020 tax years. On 28 January 2026, ZKM was informed that the RoK Ministry of Finance Appeal Board scheduled a hearing for 5 February 2026 to consider ZKM's appeals of the 2018 and 2019 tax audits.
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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
Further enquiries
Nostrum Oil & Gas PLC
Yelena Zhuravleva, CFO
TEAM LEWIS
Galyna Kulachek
+ 44 (0) 20 7802 2664
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.