Italian ENI Pays More to Kazakhstan Trying to Stop Disputes

Italian energy giant Eni SpA will raise the royalties paid to the Kazakhstan government from the Kashagan oilfield project to 20-25 pct in an effort to break the disputes with the government.

The Kazakh government recently threatened to halt the project because of delays and violations of environmental regulations.

Actually Kazakh government wanted to raise royalties from Kashagan from 10 pct to 40 pct.

Eni CEO Paolo Scaroni will discuss the issue with prime minister on September 3-5.

Italy's prime minister Romano Prodi is set to make a visit to Kazakhstan in October where, among other things, he will discuss the dispute over Kashagan.