Some game rules in Hyperboreastan,

Kazakhstan 2008. ENI delays again the completion of Kashagan field, ensuring Kazakhstan space for other takeovers or bigger compensation. Such may be the penalty for a delay. The italian oil company revised the timetable of the Kashagan oil field, from 2011 to 2012-3. The delay comes to be the second in a row, as the oil field should have become operational at first by 2008. KazMunaiGaz was that time compensated with a doubled partecipation in the consortium, from 8.4 to 16.8 %.

Kashagan oil field was detected in 2000, one of the biggest discoveries since 30 years. It was probed by ENI. Due to the field´s Central Asian location, European companies were eased to make business, banking on the non- aligned politics pursued by Europe towards the Greater Middle East. American companies, conversely, had to comply to the policies of the Pentagon towards Iran and Lybia, Algeria.

As for 2007, Eni, Exxon Mobil Corp., Total SA and Shell all got to hold a 18.5 percent stake, while ConocoPhillips had 9.3 percent one. Kazakhstan’s national oil company, KazMunaiGaz, and Japan’s Inpex Corp. each owned 8.3 percent. At the times Kazakhstan did not have know how and the political weight to oppose foreign companies from reining in and its national gas company, Kazmunaigaz, did not have the experience and the sand to bargain with western firms.

useHouse hhhPerhaps the example of Russia was emblematic for the Kazakh state run energy company. Shell was accused to be environmentally uncompliant (alleged negligent installation work, safety breaches andviolation of the pipeline route plan) and was pushed to revise its contract. Gazprom stalks foreign companies by objecting on environmental violations, delays and price of delivery. The case of the Sakhalin II oil field, that was ceded by Shell to Gazprom (infact it was ceded a 50 + 1 stake) was incumbent. Experts allege the goal for KazMunaiGaz is to achieve 40% of the stakes.

As for now the status of negotiations is “still open”. Given the delay, KazMunaiGaz rise in the stakes my be at hand.