UPDATE 2-Kazakh gas field group to cede stake to state-sources

* ENI, BG, Chevron and LUKOIL to relinquish 10 percent

* KazMunaiGas spokesman declines to comment

* Duty breaks or withdrawal of cost lawsuit on table

* Resolution could mirror Kashagan deal

(Adds background on foreign companies' conflicts with state) By Jessica Bachman and Katya Golubkova

MOSCOW, Aug 13 (Reuters) - The four foreign stakeholders in Kazakhstan's Karachaganak gas field have agreed to cut their stakes and relinquish 10 percent of the company to the Kazakh government, sources told Reuters.

One source close to the negotiations said the Karachaganak Petroleum Operating Group (KPO), made up of ENI (ENI.MI), BG Group (BG.L), Chevron (CVX.N) and LUKOIL (LKOH.MM), discussed terms of sale on July 19 but they were not final.

"The companies said they would transfer 5 percent to the state if it abandons the re-introduced oil export duty or drops its cost overstatement lawsuit of more than $1 billion," the source said.

"Kazakhstan will buy the remaining 5 percent in cash."

Britain's BG Group owns 32.5 percent of KPO, ENI has a similar stake, U.S. major Chevron has 20 percent and Russia's LUKOIL has 15 percent. It was not immediately clear how much each would give up to bring the Kazakh state in as a shareholder.

Kazakhstan has accused ENI- and BG-led KPO of violating immigration laws and overstating costs by $1.3 billion as it seeks a stake in the giant oil and gas field in the west of the oil-rich Central Asian country [ID:nLDE6520OC].

The consortium denies all wrongdoing and says it has acted in accordance with the Kazakh laws and agreements it has with the Kazakh government.

A spokesman for state oil company KazMunaiGas [KMG.UL] declined to comment on Friday. Spokesmen for all four members of the operating group have also declined comment.

NOT ALL CASH

A source within the consortium who is close to the negotiations but declined to be identified said both sides aimed to conclude talks in the autumn, and that KazMunaiGas wanted some control over expenditure on the third stage of Karachaganak.

"It won't all be cash", the source said, referring to the sale.

Another top-level source in the KPO told Reuters the path to resolution would mirror that taken by foreign partners in the Kashagan oil field project two years ago.

"Nobody, of course, wants to sell, but the only logical solution is the Kashagan model. It will mirror that," he said.

KazMunaiGas President Kairgeldy Kabyldin said on June 3 that the state oil and gas company had made a proposal to the Karachaganak consortium to acquire a 10 percent stake in the venture. [ID:nLDE6520OC]

Talks between KPO and the government have been going on since April, and KazMunaiGas Chairman Timur Kulibayev has said the price would be open to negotiation.

PRESSURE

In 2008, partners in the large ENI-led Kashagan oilfield project ceded an 8.5 percent stake to allow KazMunaiGas to double its share after facing accusations of environmental violations, delays and cost overruns.

Now Kazakhstan has filed a cost overstatement claim for $1.3 billion against KPO in arbitration court and said in June that it will reintroduce energy export duties this year [ID:LDE65R105] that the Karachaganak may have to pay.

Under current rules, most Western energy majors working on production sharing agreements (PSAs) in Kazakhstan are not liable to changes in the country's tax legislation, and BG CEO Ashley Almanza has said that Karachaganak should not have to pay.

Both the Kashagan and Karachaganak PSAs with the Kazakh government were signed in the 1990s when the country was desperate for foreign investment and expertise to develop its energy sector.

But in recent years Kazakhstan, Central Asia's largest energy producer, has made it a top priority to claw back control over its oil and gas operations and raise more money for the budget through taxes and export duties [ID:nLDE6680VM].

In June, Kazakhstan's oil minister, Sauat Mynbaev, said the country's 16 production sharing agreements with foreign oil firms were under review, as they were initially set "at a loss," but there were no plans to cancel them [ID:nLDE65F0V3]. (Reporting by Jessica Bachman and Katya Golubkova in Moscow, Maria Gordeyeva and Robin Paxton in Almaty and Chris Baldwin in London; writing by Jessica Bachman; editing by Melissa Akin and Alex Lawler)