Kazakh NOC Doubles % Of Kashagan Field Control To Equal ENI, Shell et. al - Reuters

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ASTANA, Jan 13 (Reuters) - Kazakhstan's KazMunaiGas has finally reached a deal with an Eni-led (ENI.MI: Quote, Profile, Research) consortium over developing the giant Kashagan oil field which will nearly double its stake to equal that of the biggest investors in the project.

In a statement on Sunday, the Kazakh company said all of the companies in the consortium -- which also includes ConocoPhillips (COP.N: Quote, Profile, Research) and Japan's Inpex (1605.T: Quote, Profile, Research) -- had agreed to the new terms. A source close to the talks said KazMunaiGas' stake would rise to 16.51 percent from a previous 8.33 percent. The largest shareholders in the project would reduce their stakes on a pro rata basis to bring their holdings in line with that of KazMunaiGas.

The largest shareholders in the group -- Eni, Royal Dutch Shell (RDSa.L: Quote, Profile, Research), Exxon Mobil (XOM.N: Quote, Profile, Research) and Total (TOTF.PA: Quote, Profile, Research) -- each previously had 18.52 percent in the field.

Exxon had previously been the only member of the consortium that had been holding out on agreement to lower its interest in favor of KazMunaiGas, saying it had a different view on the valuation. Kazakhstan had demanded an increase of its state-owned company's stake and compensation for cost overruns and the delay in the start of oil output at the field. Talks started last August.

EDIT

http://uk.reuters.com/article/oilRpt/idUKBAR38170220080113