Eric Watkins
Senior Correspondent
LOS ANGELES, Jan. 25 — A new managerial consortium consisting of Eni SPA, Royal Dutch Shell PLC, Total SA, and ExxonMobil Corp. has been formed to perform operational management of Kazakhstan’s Kashagan oil field, said Eni Chief Executive Officer Paolo Scaroni. He said Eni will continue to manage the test phase.
In a conference call with financial analysts, Scaroni explained the details of the deal Eni reached several days ago with the Kazakh government (OGJ Online, Jan. 18, 2008).
According to a report in Milan’s Il Giornale newspaper, the consortium will have priority in negotiations on extending the contract for the exploitation of the Kazakh oil field beyond the allotted timeframe.
The consortium also will have the right to match any proposals put forward by other companies negotiating any further exploitation of the project.
Scaroni pointed out that the “lengthy negotiations have delayed the first barrels being produced from the oil field. Now, this will take place in 2011, and the production will be 370,000 b/d.”
Stefano Cao, director general of Eni’s exploration and production division, said the exact amount of investment to be made in the project will not be known until March.
“We have to see what the outcome of the claim will be and then we will do our sums; a few months will be required to draft the budget and the experimental plan,” Cao said.
The manager then dealt with the amount of compensation that the government claims is $5 billion, but other estimates suggest $2.5-4.5 billion.
“The compensation will be the outcome of mechanisms established in the contract: a bonus, a priority payment, and a change in the interest rates that will be applied to the investment and that are linked to oil prices,” he said.
“The combination of these three factors will result in a different transfer value, which will be based on the scenario we face. Anyway, the priority payment will start after the beginning of production, as will the mechanism to calculate the interest,” Cao said.
According to Scaroni, Il Giornale reported, “The bonus relates to a small sum in comparison with the compensation value as a whole, the bulk of which is connected to events within the oil and gas industry.”
Contact Eric Watkins at [email protected].
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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