Report: Exxon may take over as Kashagan operator

|About: Exxon Mobil Corporation (XOM)|By:, SA News Editor

Exxon Mobil (XOM) reportedly is prepared to take over as operator of the Kashagan field in an effort to fix the beleaguered $50B project offshore Kazakhstan.

Discussions are continuing but Exxon could be appointed as soon as at the end of June, the publication Nefte Compass quoted a senior Kazakh official as saying.

Kashagan production started last September after numerous delays but was halted in October after the discovery of gas leaks in the pipeline network, and output may not restart until 2016.

The other Kashagan shareholders are Eni (E), Shell (RDS.A, RDS.B), Total (TOT) and Kazakh state oil company KazMunaiGas, each with 16.8%, and Japan's Inpex and China National Petroleum (PTR) as junior partners.