The Kazakh government and an Eni SpA-led (E) consortium developing the giant Kashagan oil field in the Caspian Sea have agreed to start commercial production in October 2013, the government said Saturday.
Kazakh state oil and gas company KazMunaiGas said in a statement Saturday that "the Kashagan consortium has reached agreement with the Government of the Republic of Kazakhstan on a detailed Memorandum of Understanding which expands considerably the agreements reached last December and January and paves the way for proceeding with the development project.
"In addition to the important adjustments to the economic terms, the new agreement also provides the Republic of Kazakhstan with substantial assurances that the project will be implemented in accordance with the approved schedule," KazMunaiGas said.
A company spokesman refused to comment on the statement and provide any further details.
Energy and Mineral Resources Minister Sauat Mynbayev said, according to a statement on the government Web site, that the consortium's request to extend the contract on Kashagan beyond 2041 was "categorically" rejected.
Kazakhstan and the consortium have been in a dispute over repeated delays in production and cost overruns.
KazMunaiGas has obtained a higher stake in the project as a result of negotiations over the dispute. The project was originally to start production in 2005.