Oil production from Kashagan has been delayed again to not earlier than year 2012 - Ministry of energy

/REUTERS, Dmitriy Zhdannikov, Astana/Moscow, January 14, 08/ - The start of industrial oil production from the giant Caspian oilfield Kashagan in Kazakhstan has been delayed again and it is unlikely that it happens earlier than in year 2012, the minister of energy Sauat Mynbayev announced. The previous forecast foresaw year 2010. Due to developed by foreign consortium Kashagan, Kazakhstan expected to triple the oil production by 2015 but the start of production was postponed repeatedly against the background of rise in price of the project and arguments of Astana with foreign shareholders about re-distribution of stakes. "We suppose that it (start of production on Kashagan) would be at the end of 2011 since we have spent a half of year for a dispute", - the minister informed journalists on Monday. Over the previous delay Kazakhstan authorities fined the consortium for more than $100 million. Earlier this day, it has become known that Kazakhstan state company Kazmunaygas - with a mighty support of authorities who had raised ecological and other types of claims to foreign shareholders - will pay $1.78 billion to the consortium for the additional more than eight percent of participation. The leader of the project Italian Eni will share its function of operator with other foreign participants, a source that is close to negotiations of the sides informed Reuters. Now the biggest participants - Eni, Royal Dutch Shell, Exxon Mobil and Total - will be joint operators of the project. Prior to the settlement of Kazakhstan's claims, they owned 18.52 percent in the project each, smaller stakes belonged to ConocoPhillips (9.3 percent), Japanese Inpex and Kazmunaygas (8.3 percent each). After a proportional transfer of shares of foreign investors in favor of Kazmunaygas, the stake of Kazakhstan's state company will increase to about 17 percent. [2008-01-14]