An oil group led by Italy’s Eni is believed to have taken a first step towards resolution of a dispute with Kazakhstan over the development of Kashagan, the giant oilfield in the Caspian Sea area, according to media reports.

At the weekend, the consortium agreed in principle to hand KazMunaigas, the state oil company, a bigger stake in the project to compensate for production delays and cost inflation at the giant field, Russian news agency Interfax reported. The size of the stake to be surrendered to KazMunaigas, which already owns 8.33 per cent of Kashagan, has not been determined.