Eni-Led Group Cedes Kashagan Oil Stake to Kazakhstan |
| Bloomberg - Jan 14, 2008 |
Eni SpA and partners in the Kashagan oil field agreed to cede a greater stake in the world's biggest crude discovery in 30 years to Kazakhstan, giving the government more profit and resolving a dispute over delays and costs.
State-run KazMunaiGaz National Co. will pay $1.78 billion to double its Kashagan stake to 16.6 percent, on par with the top shareholders, Energy Minister Sauat Mynbayev said at a press conference in the capital Astana. The Eni-led group will pay the government $5 billion as compensation for lost revenue.
Kazakhstan demanded renegotiation of the Kashagan agreement after delays, technical complications and cost overruns hampered the project. The government is following in the footsteps of Russia, which a little more than a year ago took control of Royal Dutch Shell Plc's Sakhalin-2 project in the Pacific Ocean after pressure by regulators.
Read Full Article from Bloomberg
- Posted: 2008-01-14 10:19:42
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