The Kazakh state oil company, KazMunaiGas, is expected to sign an agreement this week with BG Group PLC (BG.LN) and Italy's Eni SpA (E) to acquire a 10% interest in the Karachaganak Petroleum Operating company for $1 billion, ending a bitter two-year tax dispute over the oil field, the Financial Times reports Monday.

A source told the FT that negotiators would finalize the agreement this week. Last week, Kazakhstan 's deputy oil minister Lyazzat Kiinov said Kazakhstan dropped a $1.1 billion tax claim against its foreign oil partners when they agreed to sell a stake in Karachaganak.
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