KazMunaigas, the Kazakh state oil company seeking a bigger role in the giant Kashagan oil development in the Caspian Sea, reported a surge in profits at its production division yesterday, underscoring its determination to emerge as champion of the central Asian republic's oil industry.

Kazakhstan has demanded that the group developing Kashagan, led by Italy's Eni, allows KMG to participate in the operation of the project amid a dispute about massive cost inflation and production delays.