Shell, Eni Settle Dispute With Kazakhstan in $1.3 Billion Deal
- Karachaganak partners end five-year spat with government
- Agreement unlocks plans to start expansion at giant oil field
Eni SpA operation in the Karachaganak field.
Source: Eni SpA
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Royal Dutch Shell Plc, Eni SpA and their partners in the Karachaganak oil and gas venture paid $1.3 billion to settle a long-running dispute with Kazakhstan over revenue sharing.
The deal unlocks plans to boost output from the Karachaganak field and funnels additional revenue to the Kazakh economy, which is heading for its first annual contraction in more than two decades amid oil’s slump. While the government is getting less cash than it demanded last year, it’s a larger payment than initially agreed in 2018.