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


 - Exxon Fined for Russia Sanctions Violations Under Tillerson (Jul 20)
 - Big Oil Sees Salvation in Gas, But What If It's a Wrong Bet? (Jul 18)
 - ExxonMobil Says Will Drop Discussions Over Indonesia's East Natuna (Jul 18)
 Company: Shellmore info


 - BP Says It Is Considering IPO of US Pipeline Assets (Jul 18)
 - Top Oil Market Summons Poseidon to US-Mideast Crude Fight (Jul 18)
 - Big Oil Sees Salvation in Gas, But What If It's a Wrong Bet? (Jul 18)
 Company: Total S.A.more info
 - Total, BP Unit, YPF Boost Investment in Argentina's Vaca Muerta (Jul 18)
 - Big Oil Sees Salvation in Gas, But What If It's a Wrong Bet? (Jul 18)
 - S.Korea's Hanwha Total Says Naphtha Cracker Shut After Lightning Strike (Jul 17)
 Company: ConocoPhillipsmore info


 - ConocoPhillips to Sell Barnett Assets for $305 Million (Jun 29)
 - ConocoPhillips To Lay Off 300 In Canada After Cenovus Deal (May 4)
 - ConocoPhillips Posts Surprise Loss On Higher-Than-Expected Costs (May 2)
 Company: ENImore info


 - Mexico Delays Next Oil Auction to Let Huge New Find Sink In (Jul 17)
 - Trump Administration Approves Eni Plan To Drill Offshore Alaska (Jul 13)
 - Total To Drill For Gas Off Cyprus Despite Collapse Of Peace Talks (Jul 12)
 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
United States Houston: Application Evaluation Specialist
Expertise: Drilling Engineering|Field Development
Location: Houston, TX
 
Production Engineer I Job
Expertise: Petroleum Engineering|Production Engineering
Location: Oklahoma City, OK
 
MPD Field Engineer
Expertise: Drilling Foreman / Drilling Supervisor|Petroleum Engineering|WellSite Supervisor
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $49.3/BBL 0.80%
Light Crude Oil : $46.79/BBL 0.70%
Natural Gas : $3.04/MMBtu 0.97%
Updated in last 24 hours