Kazakhstan 's government said Tuesday it will buy an 8.4% stake in the project to develop the giant Kashagan oil field from ConocoPhillips (COP).

The ministry of oil and gas in a statement on its website said it "officially notified ConocoPhillips that it is exercising its right under the Subsoil Law of Kazakhstan to pre-empt ConocoPhillips' proposed sale of its... interest in the North Caspian Sea Production Sharing Agreement."

Kazakh state energy company KazMunaiGaz will acquire the stake in one of the world's largest oil projects for the government.

According to North Caspian Operating Company, or NCOC, the multinational joint venture to develop the field, Kashagan and neighboring fields in the North Caspian Sea hold estimated reserves of some 35 billion barrels of oil in place.

Kashagan is a joint venture between KazMunaiGaz, Eni SpA (E), ExxonMobil Corp. (XOM), Royal Dutch Shell PLC (RDSA, RDSA.LN), France 's Total SA (TOT), and Japan 's Inpex (IPHXY, 1605.TO).

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