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Kazakhstan wants a bigger piece of pie

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Kazakhstan wants a bigger piece of pie

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Khazakhstan wants a greater say in running the Kashagan oilfield. It warned the consortium of Western oil companies who had failed to meet time and cost targets, that the Khazak state oil company should get a larger slice of the cake. This is one of the world’s biggest oil finds in 30 years.

Khazakstan’s Prime Minister Karim Masimovsays: “The Commission on this matter has started work and in accordance with the demands of the President of our country, Kazmunaigaz should be a cooperator, and I won’t discuss what percentage yet.” The Prime Minister has complained about the disruption of the ecological balance in this shallow part of the Caspian Sea.

The country has already suspended work at Kashagan. This has put pressure on Eni and its partners Shell, Exxon Mobil, Total, Conoco and Inpex Holdings. The start of production has been delayed to late 2010. The costs have escalated from over 40 billion euros to 100 billion.

Analysts have in the past questioned Kazmunaigas’ ability to manage a project of Kashagan’s scale, where exploration is complicated by freezing winters, and toxic gas.