Kazakhstan said on Tuesday it would seek $10bn of compensation for econ­omic damage from escalating cost and late development of the Kashag­an oilfield, led by Italy’s Eni .

Eni opened talks last week with Kazakhstan about the dispute, which erupted after Eni presented the government with a revised development plan for Kashagan delaying first production until 2010 and doubling the cost of the first, 300,000 barrels a day, phase to $19bn.