Agip KCO, an Eni SpA (E) subsidiary and operator of Phase I of the giant
Kashagan offshore oil field development, is suspected of a $110 million fraud,
Kazakh state news agency Kazinform reports Friday, citing a spokesman for
financial police.
Adil Abylksamymov was quoted by Kazinform as saying Agip had calculated
expenses related to the construction of a plant twice. The company would have
been compensated for the costs from future oil production, which is planned to
begin in 2012.
A spokesman for financial police and a spokeswoman for the North Caspian
Operating Co., the Kashagan operator of which Agip is part, declined immediate
comment. In
Italy
, an
Eni spokesman wasn't immediately available to comment.
The Kashagan consortium is expected to start commercial oil production from
2012. Production will reach 1 million and 1.5 million barrels a day at the
second and third phases respectively.
KazMunaiGas, Royal Dutch Shell PLC (RDSB), ExxonMobil Corp. (XOM), Total SA
(TOT) and Eni SpA each own 16.81% in the consortium while ConocoPhillips (COP)
and
Japan
's
Inpex Corp. (1605.TO)
own 8.4% and 7.56% respectively.