Eni inks pact with the Republic of Kazakhstan

22 December 2011: Astana, the companies forming the Karachaganak Petroleum Operating B.V consortium (KPO): Eni (co-operator 32,5 per cent), BG Group (co-operator 32,5 per cent), Chevron (20 per cent) and Lukoil (15 per cent), signed a binding agreement with the Republic of Kazakhstan for the settlement of all the existing disputes and the entry of the national oil company KazMunaiGaz (KMG) in the consortium.

The agreement represents a further step forward towards the strengthening of the cooperation between the parties to support the future development phases of the field that will result in a material increase of the current production. KMG will acquire a 10 per cent stake in the project which will be released pro rata by all the members of the consortium for a net consideration of 1 billion dollars (approx Rs.5,298 crore). The payment will be financed through a loan provided by the consortium to the Republic of Kazakhstan.

Source: Yourindustrynews