Adrift: work on the Kashagan field in the Caspian Sea
Kazakhs call for Kashagan proposals
Western operators led by Italy’s Eni were told at a meeting with Kazakh officials today to prepare by 5 September proposals on how to solve a crisis over the Kashagan oilfield, a source close to talks said, after Kazakhstan suspended operations at the field over alleged environmental, safety and customs violations.
"The foreign operators ... are expected to present their proposals on how to solve the crisis by 5 September," the source told Reuters. "They were told at the meeting, 'The people of Kazakhstan impatiently wait for your decision on an adequate compensation for damage to the republic's national interests.'"
Kazakhstan suspended work at the oilfield earlier today after threatening several times in rexent months to revoke the consortium’s licence over delays and cost overruns at one of the world's biggest oil projects.
Earlier today the Kazakh Finance Ministry claimed a unit of the AgipKCO operating consortium breached customs rules over the import of two helicopters.
The Emergency Ministry also said it was sueing AgipKCO over violations of fire safety rules and will seek to halt construction of an oil and gas processing facility there.
Kazakh officials have also said the consortium had breached Kazakhstan's environmental laws while developing the oilfield.
On Friday Eni boss Paolo Scaroni said his company and its partners had 60 days to reach a negotiated solution for the Kashagan project.
The AgipKCO consortium also includes Shell, ExxonMobil, Total, ConocoPhillips, Japan's Inpex and the Kazakhstan's state-run producer KazMunaiGaz.