May 27, 2010 / 11:25 AM / 10 years ago

UPDATE 1-Kazakhstan says Karachaganak case in arbitration

* Criminal case over same claim dropped this month

* Govt wants stake in the group (Adds details, background)

ASTANA, May 27 (Reuters) - Kazakhstan’s $1.3 billion cost overstatement claim against the BG BG.L and ENI-led (ENI.MI) KPO consortium is being reviewed by an international arbitration court, the Kazakh prosecutor general’s office said on Thursday.

“The sides ... have taken the matter to an arbitration court,” spokesman for the office, Nurdaulet Suindikov told reporters.

Kazakhstan accused KPO, in which the government wants a stake, of cost-fixing in April but then closed the criminal case against it this month.

KPO, which also includes U.S. company Chevron (CVX.N) and Russia’s LUKOIL (LKOH.MM), operates the Karachaganak gas condensate field under a production-sharing agreement (PSA) with Kazakhstan. (Reporting by Raushan Nurshayeva; Writing by Olzhas Auyezov, editing by Will Waterman)

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