ASTANA, Kazakhstan, Oct. 31 (UPI) -- The government of Kazakhstan, along with several international oil majors, ratified an agreement Friday for the development of the Kashagan oil field.
The document increases the stake held by the state-run KazMunaiGaz from 8.33 percent to 16.81 percent, settling a dispute between Astana and the consortium that delayed production.
The North Caspian International Operating Co., headquartered in the Kazakh port city of Atyrau and established in the Netherlands, will represent the consortium beginning in December, energy reporting agency Platts reported.
Oil majors Shell and ExxonMobil will handle offshore production and drilling, while Italy's Eni will operate facilities onshore. France's Total will offer the first chief executive for the North Caspian operating agency.
ConocoPhillips and Japan's Inpex are the remaining partners in the Kashagan field. Discovered in 2000, the oil field holds an estimated 12.5 billion barrels of oil.
Shell, Total and ExxonMobil had complained high costs and technical difficulties presented challenges to development, prompting Astana earlier this week to say production would be delayed to 2013.
