Eni Close to Resolution on Kashagan

Italian oil company Eni is taking steps to resolve a dispute with Kazakhstan over the development of the Kashagan oilfield in the Caspian Sea, according to Russian reports.

An oil group led by Eni has agreed to hand state-owned company KazMunaigas a bigger stake in the project to compensate for production delays and cost inflation at the giant field, according to Russian news agency Interfax.

In August, it was revealed that Eni could lose control of Kashagan, the world's biggest oil discovery in 30 years, after the Kazakh Government announced an increase in project costs.

Eni, who has not commented on the venture, leads a consortium including Total, Shell, ExxonMobil, ConocoPhillips and Inex.

By staff writer