E - Shell-Eni venture pays $1.3B to settle Kazakhstan dispute

Royal Dutch Shell ([[RDS.A]], [[RDS.B]]), Eni (E) and their partners in the Karachaganak oil and gas venture have paid $1.3B to settle a long-running dispute with Kazakhstan over revenue sharing, the country's energy ministry says.With the disagreement settled, the partners can press ahead with a planned $1B expansion project "to support the output plateau."In addition to the cash settlement, the partners also approved the final terms of production sharing, with the Kazakhstan government getting as much as $600M through 2037 with oil at $40-$50/bbl.The Karachaganak field, one of Kazakhstan's biggest hydrocarbon deposits, is jointly operated by Shell and Eni, each with 29.25% shares; other partners are Chevron (CVX), Lukoil PJSC and state oil company KazMunayGas National Co."Royal Dutch Shell's 30%-plus return in November is just the beginning - now is a great time to buy," Portfolio Navigator writes in a bullish report published recently on Seeking Alpha.

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Shell-Eni venture pays $1.3B to settle Kazakhstan dispute