Azernews.Az

The North Caspian Operating Company (NCOC) has assessed the budget of the first stage of the Kashagan oil and gas project to be $7 billion more expensive, Kazakh Oil Minister Sauat Mynbayev told reporters on Monday.

"The budget itself was submitted with rise by $7 billion. However we are not happy with this sum. I cannot say yet what the sum will be after the discussion," Mr Mynbayev said.

He noted at present proposal of the NCOC shareholders on increase in the budget of the first stage of developing the field is under the consideration of the Kazakh oil and gas ministry.

"The project to increase the first stage is under consideration," Mr Mynbayev said.

Kashagan is Kazakhstan's super-giant oil and gas field located in the Caspian Sea. According to Kazakh geologists, the reserves at Kashagan are estimated at 4.8 billion tons of oil.

The largest participants of the Kashagan project are the companies Eni (roughly 16.81 percent), KMG (roughly 16.81 percent), Total (roughly 16.81 percent), ExxonMobil (roughly 16.81 percent), and Royal Dutch Shell (roughly 16.81 percent). Other participants are ConocoPhillips (8.4 percent) and Inpex (7.56 percent).