Kazakhstan to Sign Oil Export Agreements

Kazakhstan President Nursultan Nazarbayev is in Washington to sign two agreements allowing Western companies to export oil from his country. One agreement, a $6-billion project of BG of Britain, Agip of Italy and Texaco Inc. of New York, allows those companies to develop the Karachaganak field near Kazakhstan’s northern border with Russia. The other involves Mobil Corp., Agip, BG, British Petroleum, Shell Oil Co., Norway’s Statoil and France’s Total, said Mobil spokesman Dave Dickson. BG, which holds a 32.5% stake in the Karachaganak project, aims to boost its daily oil production past 400,000 barrels a day within five years. The company, formed in February when the old British Gas pipeline monopoly was broken up, has identified the oil exploration division as the key driver of profit growth in the years ahead. Texaco took a 20% stake in the field in August and plans further ventures in the area.