Kazakhstan, Astana / corr Trend K.Konirova / The situation regarding Kashagan field, through which Kazakhstan wants to be one of the ten large oil empires, is getting tense. Although the Government of Kazakhstan decided to apply ecological 'bludgeon', it seems that the events surrounding Kashagan are developing the same way as the Russian scenario regarding the Sakhalin-2 field.
A statement made by the Kazakh Prime Minister Karimm Masimov, two weeks ago at a regular meeting of Cabinet Ministers, in which he voiced the Government's dissatisfaction with delays of oil production in the Kashagan field only strengthened the rumors regarding the change of operator on the project. It became clear that the black clouds over the Italian company Eni headed by Agip KCO consortium which is responsible for the development of the field intensified.
The first accusation to address the consortium at the Governmental meeting was made by the Minister of Economy and Budget Planning, Bakhit Sultanov. He said:
- The Ministry has serious suspicions regarding the revenue part of the budget for next year. Thus, particularly, due to threats of the postponement of the beginning of oil production in the Kashagan field, vast amounts of income will not go to the National Fund.
Later, the Minister of Environmental Protection, Nurlan Iskakov, made a speech:
- I would like to inform that operations in Kashagan may be ceased. We are currently carrying out a full audit and we have already found grounds to consider that the operator is not following the requirements of ecological legislation of Kazakhstan. He said that material testifying to breaches have been forwarded to the Prosecutor General's Office and Ministry of Energy and Mineral Resources.
Hearing the two Ministers, Karim Masimov presented the Energy Minister, Baktikoja Izmuhambetov, with the task of clearing up the situation and to make a decision. Therefore, the unknown is ahead and a decision regarding the operator should be made by the Energy Minister.
Yet it is difficult to provide a way out of the situation, but the issue that events are developing the same as the Sakhalin scenario is certain. Formerly using ecological 'bludgeon', Russia restored ownership of the large-scale Sakhalin field. Not tolerating the ecological fines, foreign companies refused the project.
It is wholly possible that due to such events, the Italian company Eni will be forced to go and another company will replace it. The candidates are not clear yet, but amongst them are Russian and British companies.
However, an alternative scenario is possible. In order to maintain its reputation, Eni and the consortium are prepared to pay the Government compensation to satisfy them.