Chief Executive Paolo Scaroni of Eni SpA (E), which leads the consortium developing Kashagan, said Tuesday that talks with the Kazakh government are continuing over the oil field, despite an accord reached five months ago to end a spat between the parties.
"Negotiations with the Kazakh government are continuing," as are works at the massive project, said Eni CEO at a press conference in Rome following a shareholders' meeting to appoint a new board for a three-year term.
Scaroni also said Eni hasn't set a "fixed" deadline for the talks to end.
According to the CEO, the Kazakh government has set an end of June date to reach an agreement but added that it can be "changed...we don't set deadlines."
The consortium, which includes heavyweights Exxon Mobil Corp. (XOM), Royal Dutch Shell PLC (RDSB.LN) and Total SA (TOT), reached an agreement in January to compensate the government of the Central Asian country for cost overruns and production delays after six months of talks.
Kashagan, located on the Kazakh side of the Caspian Sea, is one of the world's biggest oil discoveries in the past 30 years, with estimated recoverable reserves of 13 billion barrels. The original output start was 2005.
Other consortium members include ConocoPhillips (COP), Japan's Inpex Holdings Inc. (1605.TO) and Kazakh state-owned oil company KazMunaiGas.
The Kashagan consortium hasn't unveiled an updated cost and schedule plan for the field. In January, the sides said output was seen starting in the second half of 2011.
The Kazakh government recently said the consortium has told it that the start of production is seen slipping to 2012 or the year after.