Kazakhs See Kashagan Expansion Agreement Soon, Kommersant Says

Kazakhstan expects to reach an agreement soon with the international partners in the Kashagan oil field about expanding the project, Prime Minister Karim Massimov said in an interview published today in Kommersant.

Negotiations on Kashagan’s second phase were slowed because of parliamentary elections and the formation of a new cabinet this month, and will resume now that Massimov has been reappointed and Oil and Gas Minister Sauat Mynbayev kept his post, the Russian newspaper said, citing the Kazakh premier.

Parliamentary elections were held Jan. 15, and the new legislature expressed confidence in the government on Jan. 20. Kashagan, once touted as the world’s biggest discovery in four decades, is scheduled to start its first-phase production in June 2013 “at the latest,” former Deputy Oil and Gas Minister Lyazzat Kiinov said in December.

To contact the reporter on this story: Svetlana Antoncheva in Astana, Kazakhstan at santoncheva1@bloomberg.net

To contact the editor responsible for this story: Hellmuth Tromm at htromm@bloomberg.net

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