Eric Watkins
Senior Correspondent
LOS ANGELES, Oct. 2 -- Kazakhstan could drop its demand that state-run KazMunaiGas become joint operator of offshore Kashagan oil field, according to a senior official who added that the government has no plans to revise contracts of other international oil companies.
Kazakh Energy Minister Sauat Mynbayev Oct. 2 said, "The question of Kazakhstan's role in the project as a co-operator is part and parcel of the negotiating process."
He said Kazakhstan would not approve the development plan and budget of the consortium led by Eni SPA in their present forms (OGJ, Oct. 1, 2007).
As for environmental complaints lodged by the Kazakh Environmental Protection Ministry (KEPM) and the Kazakh Emergency Situations Ministry (KESM) against the Eni group, Mynbayev said he saw no reason in them to suspend work on the project as a whole.
"The consortium accepted a part of the complaints, and it is currently in the process of rectifying them. We do not see any reasons to suspend the project because of the environment. The Environmental Protection Ministry and the consortium are reaching an agreement," he said.
He also said the government of Kazakhstan has no intention of revising contracts with foreign producers that honor the country's laws.
Contact Eric Watkins at [email protected].
