Financial Times FT.com

Kazakhs halt work at Kashagan field

By Isabel Gorst in Moscow

Published: August 27 2007 08:56 | Last updated: August 27 2007 11:55

Kazakhstan on Monday called a three-month halt to work at the giant Kashagan oilfield, claiming that a consortium led by Italy’s Eni had broken environmental rules at the project and evaded customs duties on imported equipment.

The move will intensify pressure on Eni, which opens talks Monday with Kazakhstan about possible changes to the contract terms at Kashagan, where repeated delays and soaring costs have angered authorities.

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