Kazakhstan eyes bigger state role in key oilfield

( Reuters ) - Kazakhstan warned an Eni-led consortium of Western oil majors on Thursday the Kazakh state oil company could take a greater role in the Kashagan oilfield following a row over the project's delays and cost overruns.

Kazakhstan has piled pressure on the group headed by Italy's Eni ENI.MI, suspending Kashagan's operations altogether last month and dealing a blow to investor confidence in the oil-rich Central Asian state.

Speaking on Thursday, Prime Minister Karim Masimov said state energy company KazMunaiGas should gain a bigger say in developing one of the world's biggest oil finds in three decades.

"According to the Kazakh president's orders and demands, KazMunaiGas should be a co-operator," he told reporters on the sidelines of a conference in Astana. "I will not say anything about percentages at this stage."

KazMunaiGas currently has 8.3 percent in the project in a shallow part of the Caspian Sea.

Pressed on specifics, Masimov would not say what the government's exact plan was. Asked what the government would do if the consortium did not meet Kazakh demands, he said: "Then we have Plan B. I'll tell you about that later."

Analysts have drawn parallels between the Kashagan dispute and cases of resource nationalism where governments around the world, emboldened by high oil prices, seek more cash and control from foreign companies tapping their riches.

But Masimov said Kazakhstan's concern was that Kashagan delays could undermine the country's economic growth.

"The delay in commercial oil production at Kashagan and the doubling of costs threaten Kazakhstan with serious social and economic consequences," he said.

Moves against the group, citing mainly ecological issues, echoed Russia's row with a Royal Dutch Shell-led RDSa.L group, which was solved only after the partners ceded control in Sakhalin- 2, a huge oil and gas project, to a state firm.

Masimov said a call for a bigger Kazakh role in the project was part of President Nursultan Nazarbayev's five point plan, first announced in 2001, for Kashagan's development.

The plan included a demand for the consortium to start production in 2005, guarantee ecological safety, make proper use of the gas extracted together with the oil, make use of Kazakh materials and services, as well as take KazMunaiGas as a co-operator.

Production has been postponed to the second half of 2010.

Deputy Finance Minister Daulet Yergozhin told Reuters on Tuesday that the government was seeking more than $10 billion in compensation for the problems at Kashagan.

He was quoted by an Italian newspaper on Thursday as saying costs and lost revenues from the delays could be more than $40 billion.

Other participants in the consortium are Royal Dutch Shell RDSa.L, Exxon Mobil Corp XOM.N, Total TOTF.PA, ConocoPhillips COP.N and Japan's Inpex Holdings Inc 1605.T.

But Masimov, speaking earlier, denied Kazakhstan sought to squeeze foreign investors out of its oil sector and invited the chief executive of Eni and other senior officials for talks.

" Kazakhstan is immune from so called resource nationalism," he said. " Kazakhstan has been and remains a responsible participant in the system of guaranteeing international energy security."

Pakistani FWO talks interest to co-op with Azerbaijan in infrastructure projects
Pakistani FWO talks interest to co-op with Azerbaijan in infrastructure projects
Italy's share in Azerbaijani oil export in 2020 disclosed
Italy's share in Azerbaijani oil export in 2020 disclosed
Hungary-Azerbaijan cooperation on ACG, Baku-Tbilisi-Ceyhan pipeline can expand to new areas
Hungary-Azerbaijan cooperation on ACG, Baku-Tbilisi-Ceyhan pipeline can expand to new areas
Loading Bars
Pakistani FWO talks interest to co-op with Azerbaijan in infrastructure projects
Azerbaijani president receives Signify representatives via video format (PHOTO)
OSCE MG should support post-conflict rehabilitation of Azerbaijani territories - OSCE PA VP
Chairperson-in-Office of OSCE looks to visit Azerbaijan
Italy's share in Azerbaijani oil export in 2020 disclosed
Azerbaijani satellites to provide HD broadcasting to West Africa region
Hungary-Azerbaijan cooperation on ACG, Baku-Tbilisi-Ceyhan pipeline can expand to new areas
Khazar Consortium opens again tender for service maintenance in Turkmenistan
Conversations ongoing on potential projects between Turkmenistan, UK
Uzbekistan’s fiscal policy to continue supporting economic recovery - Fitch Ratings
Payment card turnover in Azerbaijan continues to grow
Azerbaijan’s crude oil export to China up
Hungary eyes including Azerbaijani gas in country’s future energy mix
Azerbaijani market of great interest to Russian Perm region's business circles
Azerbaijan reports 142 more COVID-19 recoveries
Azerbaijan discloses volume of foreign trade operations with Russia in Jan. 2021
Azerbaijan to use new 'cloud' technologies in audit during 2021 - Chamber of Auditors
Volume of loans issued by Georgian commercial banks down
Uzbek-Korean JSC announces tender for transport services
OSCE ready to deploy mediation missions for sustained peace in Azerbaijani liberated territories - president
CNPC in Turkmenistan opens tender for provision of gas leakage detection services
Fitch projects share of state-owned banks in Uzbekistan to reduce
"Sign of Khojaly" film demonstrated within "Justice for Khojaly" campaign (VIDEO)
OIC SecGen pays tribute to those who lost their lives in Khojaly genocide
Reconstruction of Azerbaijan’s liberated lands to deepen economic co-op with Hungary
Moderna sees $18.4 billion in sales from COVID-19 vaccine in 2021
Swiss agriculture technologies to be introduced in Kazakhstan's Almaty
Tesla short-sellers sitting on $3.5 billion weekly profits
Azerbaijani FM receives Pakistani FWO's Director General (PHOTO)
Resident of Azerbaijan's liberated Jabrayil district injured as result of mine explosion
Georgia creating new council to develop state enterprise reform strategy
Uzbekistan approves investment agreements on construction of wind farms in Bukhara region
Iran's raw steel exports shrink
Dutch company sets up concrete production plant in Uzbekistan’s Tashkent region
Georgian Railway to resume passenger transportation
Azerbaijan records growth of debit cards in January 2021
Azerbaijani company signs contracts for transportation of aluminum products to Turkey
Russia increasing supplies to Turkey along BTK railway
Main share of Czech investments in Georgia falls on energy sector
Oil refining volumes decrease in Kazakhstan year-on-year
Azerbaijan communications ministry working on stabilizing Internet in districts
Azerbaijan’s Azerishig, MERKABA-SOFT companies sign contract
Payments of Azerbaijani insurance companies double
Data on cotton yarn sales on Turkmenistan’s exchange in Jan.2021
Kazakhstan's national oil&gas company reports lower annual oil transportation volumes
Kazakhstan's KazMunayGas sees decrease in 2020 oil extraction
Azerbaijan sees Jan.2021 growth of national currency deposits in local banks
Georgia plans to hinder construction of plastics recycling plant in Kutaisi FIZ
Iran reveals COVID-19 data for February 25
AzTV will investigate historical assasinations (PHOTO)
Kazakhstan eyes to host meeting of Turkic Council countries' energy ministers in 2022
Zarif urges South Korea to release Iran's blocked assets
UK eager to restart U.S. talks on tariff removal
Saipem expects capex to rise in 2021
Central Bank of Azerbaijan announces winner of tender for survey on household plans
Central Bank of Azerbaijan shares data on revenues of Azerbaijani insurance companies
Number of trucks crossing through Iran's Jolfa border checkpoint revealed
German companies eye 'green economy' dev't projects in Kazakhstan
Kazakh investors interested in several sectors of Turkish economy
Assets of pawnshops and microcredit organizations in Uzbekistan increase
Kazakhstan's major copper company reveals its 2021 production guidance
Turkey's activity on Turkmenistan’s exchange in Jan.2021
Azerbaijani president takes part in ceremony of providing families of martyrs, disabled with apartments (PHOTO)
Details of import-export via Iran's Bushehr Province announced
President Ilham Aliyev attends opening of Shaghan Rehabilitation Pension (PHOTO)
KAZ Minerals provides update on Baimskaya Project in co-op with Russia
Military coup attempt in Armenia - PM inviting supporters to Republic Square
Uzbek agriculture ministry to create system to monitor irrigated lands
Pashinyan dismisses head of General Staff
Armenian General Staff demands Pashinyan's resignation
Azerbaijani banks' foreign currency demand down
Azerbaijan privatizes several district public properties via auctions
Turkmenistan prepares to host transport conference for landlocked developing countries
Bakcell launches internet package for online education and work
Iran starts exporting products from Tombak port
Georgian PM appoints Vice PMs
Extraction from Iran's South Pars gas field exceeds plan
Kazakhstan's KAZ Minerals reports increase in revenues
TOP-5 trading partners of Azerbaijan in Jan. 2021
Georgia to extend grace period for auto importers
Saipem’s capex down, net financial debt up in 2020
Kazakh national atomic company's subsidiary opens tender to repair vehicles
Saipem sees decrease in revenues due to slowdown of projects
Barclays lifts 2021 oil price outlook on tighter U.S. supply view
Azerbaijani MFA comments on statements by Luxembourg's FM
Khojaly genocide - heaviest crime of last century, says Turkish Parliament's chairman
Turkey records more revenue from Jan.2021 car exports to France
Uzbekistan eyes purchasing helicopters from Airbus
Turkey always next to Azerbaijan - speaker of Turkish Parliament
Volumes of agricultural products export in Turkmenistan’s Lebap region revealed
Annual profit margin of Georgian banks increases
Azerbaijan's export of plastics over Jan. 2021 shows substantial growth
Iranian parliament shares grief of relatives of victims of Khojaly tragedy
Upgrading of Internet equipment in Azerbaijan's Khachmaz district continues - Ministry
Uzbekistan to fund introduction of drip irrigation technology for cotton growing
Europe’s gas trade to decline to 450 bcm by 2050
Kazakh gas producing company opens tender to buy spares for wells repair
Turkmenistan to send cargo flight to Turkey
Kazakhstan boosts mutual trade with Germany amid COVID-19
Ukrainian companies eye creating logistics center in Turkmenistan’s seaport
All news