Commercial oil production at the giant Kazakh Kashagan field will begin in November, reports Reuters with reference to the chief executive of state oil firm KazMunayGaz.
On Friday Kazakh Acting Energy Minister Kanat Bozumbayev said that “the official launch of Kashagan is scheduled for October 23”, adding that commercial production in the amount of 75,000 barrels per day at the field is expected to be reached in early to mid-November, reports Novosti-Kazakhstan news agency.
Kashagan is one of the largest oil and gas fields in Kazakhstan located in the north of the Caspian Sea. Last month, KazMunayGaz signed a contract with trader Vitol to arrange a prepayment for its share in the Kashagan oil worth USD1 bln.
The geological reserves of Kashagan are estimated at 4.8 billion tons of oil. The total oil reserves amount to 38 billion barrels; some 10 billion out of them are recoverable reserves. There are also a large natural gas reserves at the Kashagan field amounting to over one trillion cubic meters.
In October 2013, the production at the Kashagan field was suspended after a gas leak in one of the main pipelines.
It is expected that in the following years the Kashagan’s output will be a modest 50,000 to 1 million tonnes in 2016, 3 million to 5 million tonnes next year and then 7 million tonnes in 2018, report Reuters.
North Caspian Operating Company BV (NCOC) consortium is engaged in developing the project. The Kashagan shareholders are: KMG Kashagan BV (16.88%), which is a subsidiary of KazMunayGaz, AGIP Caspian Sea BV (nearly 16.81%), Exxon Mobil Kazakhstan Inc. (nearly 16.81%), Shell Kazakhstan Development BV (nearly 16.81%), Total E&P Kazakhstan (nearly 16.81%), INPEX North Caspian Sea Ltd. (7.56%) and CNPC Kazakhstan BV (8.33%).
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