Negotiations concerning Kashagan project between NC KazMunayGas CJSC and Agip KCO may be finished this week

/Kazakhstan today, February 23, 04/ - The negotiations on Kashagan project between "KazMunaiGas" "NC" JCSC and Agjp KCO can be completed this week, the president of KazMunaiGas Uzakbai Karabalin reported today on 23 February at a video press-briefing Almaty-Astana. "We are expecting that the negotiations will be completed in the near future. The results will be approved by the government of RK". "An agreement is expected to be signed within the next few days. We suppose that it will be one time payment with further payment for oil production delay," he explained. As it was informed before, Agip KCO proposed to the government a $150 millions compensation to suspend oil production on Kashagan deposit up to 2007. According to the Agreement reached between Agip KCO and the government of Kazakhstan, oil production will be commenced in 2005 on Kashagan deposit. BG Group, Exxon Mobil, Inpex Masela Ltd., Phillips, Shell and TotalFinaElf belongs to Agip KCO consortium. The first oil on Kashagan deposit was discovered on Vostok-1 well in summer 2000. Approved reserves are 11 billion barrels of oil. [2004-02-23]