UPDATE 1-ENI CEO says Kashagan going full steam

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By Tom Bergin

MADRID, July 2 (Reuters) - Kazakhstan's Kashagan oil field, which has suffered severe delays, is now going full steam, the chief executive of operator ENI (ENI.MI) said, playing down suggestions the government was holding up the project.

Paolo Scaroni told reporters at a briefing on Wednesday that comments by the CEO of project partner Exxon Mobil (XOM.N) on Tuesday, blaming the government for delaying the project, likely related to an earlier period, rather than today.

"Probably Mr. Tillerson was referring to the fact that during the negotiation which took place from June 2007 until January 2008, during that period, the first party didn't sign new orders, and this of course has been responsible for some delays on the project," Scaroni said.

The CEO said there was no slowdown at Kashagan, one of the largest oil discoveries in the world in recent decades.

Scaroni added that he was more optimistic of first oil in 2013 after a deal with the government.

"Works are going at full speed."

On Tuesday, Rex Tillerson told a press conference at the sidelines of the World Petroleum Congress: "It's time for government of Kazakhstan to stop delaying the project."

Kazakhstan and a consortium of Western oil companies developing the huge Kashagan oilfield have agreed to put off the start of production until 2013, a senior Kazakh government official said on Saturday.

In May, Kazakhstan threatened to impose sanctions should the consortium decide to delay production from the $136 billion project. (Editing by Will Waterman)