New Pipelines To Cost Kashagan Oil Project Up To $3.6B

The more expensive alternative is to use carbon-steel pipes of strength L415 (X60) with an internal coating made of non-corrosive alloys, it said.

Contacted by Reuters, the consortium declined to comment.

The Kashagan consortium will have to buy pipes adding up to a total length of 200 km (125 miles) to replace the entire network of the field's oil and gas pipelines, the ministry added.

A current delay in testing steel and welding is likely to frustrate the consortium's plans to restart output at the field in the second half of 2016, it said.

Senior Kazakh government officials have said that output from Kashagan may be restored in the first or second half of 2016.

The consortium is in talks with Italian oil service group Saipem regarding the replacement of oil and gas pipelines at the oilfield, the ministry said.

Saipem had originally been contracted to lay the current pipeline network at Kashagan, using pipes supplied by Japanese companies Sumitomo and JFE.


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