The Kazakh government wants changes to the deal reached in January with the consortium developing the Kashagan field to take into account surging crude oil prices, a possible delay in output and a jump in costs, daily Il Sole-24 Ore reports Friday, without citing sources.
The Central Asian government wants measures that will boost compensation from the Eni SpA (E)-led consortium for cost overruns at the project, the Italian newspaper reports. The government seeks changes to the royalties to be paid for output because crude oil prices have leaped since the accord was reached at the start of the year.
Kazakhstan and the consortium, which includes Total SA (TOT), Royal Dutch Shell PLC (RDSB.LN), Exxon Mobil Corp. (XOM), reached an agreement in January over a dispute that had started the previous summer over production delays and cost overruns.