Kashagan Production Still Scheduled for 2012


Kashagan Field
(Click to Enlarge)

The economic downturn will not affect the development of Kazakhstan's Kashagan oil field, said a Shell executive, according to a Reuters report. In fact, he added, the present economy may even help minimize development costs.

"The plan is still to have first production as announced, in the fourth quarter of 2012," Shell's Caspian manager Campbell Keir told reporters. "The economic situation and the low oil price should allow us to bring the cost down."

Located 80 kilometers southeast of Atryrau, Kashagan was discovered in July 2000. Considered the most important discovery in the last three decades, the giant offshore field is estimated to hold some 7 to 9 billion barrels of gross recoverable reserves, which may be extended to 13 billion barrels through gas re-injection.

Sanctioned in February 2004, field development on Kashagan will be carried out through three phases. Developed through production hubs on platforms and man-made islands, production was initially scheduled for 2008, but cost overruns and development revisions have postponed the start-up. The first developmental phase alone is projected to cost $19 billion.

Although there have been disagreements between project partners and the Kazakh government, a MOU was signed in January 2008 that resolved the conflict. Once all phases of development are complete, full field production at Kashagan is expected to plateau at 1.5 million barrels a day.

Eni serves as operator of the Kashagan oil field with 18.52%. Partners on the massive project include Total (18.52%), Shell (18.52%), ExxonMobil (18.52%), ConocoPhillips (9.26%), Impex (8.33%) and KazMaunayGas (8.33%).
 

Related Companies
 Company: Exxon Mobil Corporationmore info


 - ExxonMobil Starts Fuels Production at Baytown, Beaumont (Sep 21)
 - Far From the Texas Coast, Hurricane Harvey Hits Oil Refiners (Sep 19)
 - Big Oil Becomes Greener With Progress in Cutting Pollution (Sep 18)
 Company: Shellmore info


 - Canada Gas Set to Strike Back Against US Shale as Glut Eases (Sep 14)
 - Harvey's Wake Tempers Bullish Outlook for US Oil Output Growth (Sep 1)
 - Storm Harvey Opens Up Rare Jet Fuel Exports from Europe to US (Sep 1)
 Company: Total S.A.more info
 - Total Steps Up Renewables Drive With EREN, GreenFlex Deals (Sep 19)
 - Far From the Texas Coast, Hurricane Harvey Hits Oil Refiners (Sep 19)
 - Big Oil Becomes Greener With Progress in Cutting Pollution (Sep 18)
 Company: ConocoPhillipsmore info


 - For ConocoPhillips, Harvey A Test Of Remote Operations (Sep 7)
 - ConocoPhillips Says Eagle Ford Shale Output Nears Pre-Harvey Levels (Sep 5)
 - US Drillers Add No Oil Rigs as Harvey Slows Production - Baker Hughes (Sep 1)
 Company: ENImore info


 - Eni Inks Cooperation Deal With China's CNPC (Sep 13)
 - Italy's Eni Confident Of Dividend Even With Lower Oil Prices (Jul 28)
 - Mexico Delays Next Oil Auction to Let Huge New Find Sink In (Jul 17)
 Company: KazMunayGas more info
 - Keppel Kazakhstan Tie-Up Wins $242M Jackup Rig Deal (Jul 11)
 - Eni Inks E&P Cooperation Agreement with KazMunayGas (Nov 6)
 - Trio Clinches E&P Deal for Caspian Sea Venture (Jun 11)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Lead Riser Engineer
Expertise: Project Engineer|Subsea Engineering|Umbilicals, Risers and Flowlines
Location: Houston, TX
 
United States El Reno: Perforating Specialist, Assoc
Expertise: Perforation|Petroleum Engineering
Location: El Reno, OK
 
United States El Reno: General Field Engineer - Cased Hole
Expertise: Petroleum Engineering
Location: El Reno, OK
 
search for more jobs

Brent Crude Oil : $56.86/BBL 0.76%
Light Crude Oil : $50.66/BBL 0.21%
Natural Gas : $2.959/MMBtu 0.30%
Updated in last 24 hours