Kashagan Consortium to Push Forward Project Plans

The oil consortium responsible for developing the Kashagan field met today to push forward plans to develop the project, sources close to the talks have told Reuters.

The consortium, made up of Eni, ExxonMobil and Shell amongst others, is due to submit proposals on the future of one of the world's biggest oil finds by the end of this month.

Consortium members, Kazakh officials and national oil company KazMunaiGas met in the capital Astana to discuss details of a deal reached in January that ended months of tense negotiations due to cost overruns and production delays.

Back in January, production at the Kashagan oil field was delayed to the end of 2011 by the Kazakh Government when it was confirmed that Italian energy group Eni would no longer be sole operator.

According to Reuters, industry sources believe the deadline for the proposals (set at May 31) may be pushed further if details are not finalised, particularly the start of production and the structure of its new managing company.

The field, which was discovered in July 2000, is the world's biggest oil discovery in 30 years.

By staff writer