Deal means smooth development of Kashagan - Eni

By Ian Simpson

MILAN, Jan 15 (Reuters) - The giant Kashagan oil field in Kazakhstan can now be developed smoothly with a new management structure that includes stripping Italian oil major Eni of its lead role, Eni's exploration and production chief said on Tuesday.

Ending months of talks over a new Kashagan agreement, Kazakhstan said on Monday it would pay $1.78 billion to double its stake in the field, with the project being further delayed to 2011.

Under the new accord, Exxon Mobil XON.N, Royal Dutch Shell (RDSa.L) and France's Total (TOTF.PA) will progressively join Eni (ENI.MI) in operating the project, Chief Executive Paolo Scaroni said in a conference call with analysts.

Eni will head the project in its initial phase.

Stefano Cao, head of Eni's exploration and production unit, said he believed Kazakhstan had not appreciated the difficulties in developing Kashagan. The Caspian Sea site features high-pressure reservoirs as well as winter temperatures now at minus 25 degrees Celsius (minus 13 Fahrenheit).

"I think we have to be shrewd and concrete and move on and I believe now we have devised a model which will allow us to go on in an uninterrupted fashion," Cao said.

"So it's better to look to the future than to the past."

Eni expects output of about 300,000 barrels a day in 2011 and a rise to commercial capacity of 370,000 barrels a day in about another year, he said.