Kazakhstan says Exxon holdout risks Kashagan talks

ASTANA/NEW YORK (Reuters) - Kazakhstan said on Monday that Exxon Mobil Corp's (XOM.N) holdout for better value for part of its stake in the giant Kashagan oil field endangers the project.

Exxon is the only company from a consortium of oil majors overseeing the field that has not agreed to lower its interest in the project in favor of Kazakhstan's state-owned oil company, Kazakh energy minister Sauat Mynbayev said.

Kazakhstan and the oil companies have set January 15 as the new deadline for talks over the project -- the largest oil find in the last 30 years. Both sides had previously aimed to close the deal by December 20.

Exxon said last week it was not against cutting its stake in favor of Kazakh state company KazMunaiGas KMG.UL but had its own view on valuing the deal.

Mynbayev said Kazakhstan did not like Exxon's offer.

"Such an approach bears risks for the project," he said.

In addition to the larger stake, a source close to the talks said last week that the group of oil companies, led by Italy's Eni (ENI.MI), had agreed to concede more profits from the field to the country.

The Central Asian state is also seeking a cash payment as compensation for cost overruns and delay in the start of production at Kashagan.

Exxon maintained that it continues to work with Kazakhstan "to reach an amicable solution on the appropriate and fair value for the equity."

Spokesman Gantt Walton said the consortium was working to resolve the issues within the framework of the production sharing agreement currently in place.

Operator Eni, Royal Dutch Shell Plc (RDSa.L), Total SA(TOTF.PA) and Exxon Mobil each have 18.52 percent in Kashagan.

Smaller stakes belong to ConocoPhilips (COP.N), with 9.26 percent, and Japan's Inpex Holdings Inc (1605.T) and KazMunaiGas, with 8.33 percent each.

The Caspian Sea field is at the heart of Kazakhstan's ambitious plans to triple oil output by 2017.

It is now due to start pumping oil in 2010, instead of the original 2005 target. Total costs have soared to $136 billion from $57 billion.

Emboldened by sky-high oil prices, Kazakhstan has intensified pressure on the oil companies to secure itself a larger stake in the field.

Events surrounding development of the Kashagan field have raised concerns among foreign investors that the government may be following the lead of other countries like Venezuela that have tightened their grip on resources such as oil as it surged toward $100 a barrel.

Countries as varied as Nigeria, Venezuela and Canada have changed terms of previously agreed-upon contracts or nationalized assets that were owned by foreign oil companies.

Over the past several years, Exxon has gained a reputation for standing fast in the face of pressure from host governments. The company left Venezuela rather than renegotiate its contracts there and is currently in disagreement with Russia over the destination for gas from its Sakhalin-1 project.

(Writing by Michael Erman in New York and Olzhas Auyezov in Almaty; Editing by Ramthan Hussain/Jeffrey Benkoe)