Tethys Petroleum Braces for Kazakhstan Tax Hike Impact
Tethys Petroleum Limited (TSXV:TPL) has issued a corporate update in response to Kazakhstan's recent excise tax increase. The new tax coefficient of 95% on gasoline and diesel will significantly compress downstream margins and reduce cash flow for the company.
The tax hike, effective retroactively from September 1, 2026, is part of Resolution No. 816 adopted by Kazakhstan on September 11, 2026. This increase in excise tax coefficient will impact Tethys's Kul-Bas oil production, which currently exceeds 400 tons per day.
The company plans to seek farmout partners for three of its current licences: Nurzhau, Diyar, and Zhanasu. However, due to the prevailing tax and pricing framework, Executive Chairman Bill Wells emphasized that Tethys is unlikely to participate in upcoming licence auctions.
Tethys's Kul-Bas oil production is expected to surpass 500 tons per day after the commissioning of CPF Phase II by the end of September. The company will also revise its internal operating and cash flow forecasts to account for the combined pressures of the elevated tax rate and restricted alternative sales channels.