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Nostrum Oil & Gas PLC announced on 9 February 2026 that its subsidiary, Zhaikmunai LLP (ZKM), provided an update on withholding tax disputes with the Republic of Kazakhstan tax authorities. At a hearing on 6 February 2026, the RoK Ministry of Finance Appeal Board postponed its decision regarding ZKM's challenge to tax claims for the years 2018 and 2019. The Appeal Board is reviewing communications from the Dutch tax authority under a mutual agreement procedure (MAP) concerning these claims.
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London, 9 February 2026
Further 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 a further update on withholding tax disputes involving its principal operating subsidiary, Zhaikmunai LLP ("ZKM") and the tax authorities in the Republic of Kazakhstan ("RoK"), following on from its announcement on 3 February 2026.
At a hearing on 6 February 2026 regarding ZKM's challenge to tax claims by the RoK tax authorities resulting from their tax audits of ZKM for the years 2018 and 2019, the RoK Ministry of Finance Appeal Board (the "Appeal Board") postponed its decision. ZKM understands that the Appeal Board is reviewing and considering communications from the Dutch tax authority pursuant to the mutual agreement procedure ("MAP") under the relevant double tax treaty between the Kingdom of the Netherlands and the RoK (the "RoK-NL Treaty") in respect of the pertinent claims, which may result in the suspension of the appeal pending the outcome of the MAP.
Paragraph 3 of Article 4 of the RoK Constitution provides that international treaties ratified by the RoK (such as the RoK-NL Treaty) have priority over RoK domestic laws (including the RoK tax code) and RoK Supreme Court precedent provides that where an international treaty contains a mutual agreement procedure such as the MAP, for the good faith performance of the treaty such mutual agreement procedure, when invoked, should be conducted between the competent authorities of the two states party to the treaty to achieve the goals of such treaty. A treaty party may not invoke the provisions of its internal law as justification for a failure to perform its treaty obligations.
As previously announced, the Company believes that the tax claims made by the RoK tax authorities resulting from their tax audits of ZKM for the years 2018, 2019, and 2020, which deny ZKM the benefit of relevant and valid exemptions from, or reductions to, withholding tax payable under RoK law on certain bonds issued by Group companies, remuneration on an intra-Group loan, and income from consulting services, respectively, are without merit.
The Company continues to monitor developments closely and will continue to defend its interests and to assess all available legal and treaty-based 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.