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Interfax: KazMunayGas to get larger share in Kashagan oil project

ASTANA.  Oct  20  (Interfax)  –  All  participants  in a project to develop  the  giant  Kashagan  oil field in Kazakhstan, including Kazakh officials,  on Saturday reached an essential agreement to enlarge Kazakh state company  KazMunayGas’  share  in the project but did not agree the future size of its share yet, a source told Interfax.

Today KazMunayGas holds an 8.33% share in Agip KCO, the consortium running the project. Project operator Eni holds a stake of 18.52% in it. So do Total, ExxonMobil and Royal Dutch Shell. The share of ConocoPhillips is 9.26%, and that of Inpex 8.33%.

ExxonMobil was the only consortium member to set a condition for enlarging  KazMunayGas’ stake. The U.S. company demanded that the production sharing agreement on which the project remain in effect beyond 2041. The source said Kazakhstan would not agree to that.

Agip  KCO and the Kazakh government are drafting a memorandum of understanding  to  make provision for a larger stake for KazMunayGas and for further talks on compensating  Kazakhstan  for losses caused by a change in the oil price.

Kashagan, an offshore field in the Kazakh sector of the Caspian Sea, contains estimated  minimum  recoverable oil reserves of 7 billion barrels and total geological oil reserves of 38 billion barrels.

http://www.interfax.com/3/326401/news.aspx

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