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Head of Italy’s ENI to Visit Kazakhstan

Oil&Gas Materials 10 September 2007 20:01 (UTC +04:00)

Kazakhstan, Astana / corr Trend K.Arinova / Paolo Skaroni, the head of the Italian company ENI is arriving in Astana, Kazakhstan on 11 September to meet with Karim Masimov, the Prime Minister of Kazakhstan, a source at the Government said. Skaroni intends to discuss in Astana the situation around the development of Kazakhstan's largest oilfield, Kashagan.

The claimants at ENI's position (operator of Kashagan field development project) are other members of the consortium Total and ExxonMobil.

We consider that the economic balance was broken in contradiction with Kazakhstan, all the corresponding demands have been submitted and currently friendly negotiations are being held to resolve the difficulties. If participants of the consortium of Agip do not agree with the demands of Kazakhstan then we have plan B," the Prime Minister of Kazakhstan, said during the second Eurasian Energy Forum on 6 September.

Plan B stipulates more decisive steps by the Government of Kazakhstan, in this case the replacement of operators is unilateral. "Both companies will lead the project. However, Kazakhstan has close ties with ENI. The US company ExxonMobil even intends to use political means, for instance, to achieve the cancellation of limitations on several types of Kazakhstan's products through the Senate and Congress," the source said. "The victory by the US company is undesirable to Russia and should a scenario develop through the replacement of an operator, the country can support Total's application," the same source added.

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