Kashagan Oil Restart Not Expected This Year
ASTANA, April 28 (Reuters) - Output at Kazakhstan's huge Kashagan oilfield is not expected to restart this year after an investigation revealed that long stretches of oil and gas pipelines may need to be fully replaced, the project consortium said on Monday.
The Central Asian nation of 17 million relies heavily on oil exports, and the setback in development at its flagship field could be a drag on state coffers.
Production at the offshore deposit, the world's biggest oil find in 35 years, started in September but then halted in early October after the discovery of gas leaks in the $50 billion project's pipeline network.
"The current assessment, based on the results of an investigation, is that both the oil and the gas pipelines might have to be fully replaced," the consortium said.
The possibility that Kashagan's entire oil and gas pipeline network could be replaced was raised by a Reuters article earlier this month.
The field's oil is 4,200 metres (4,590 yards) below the seabed at very high pressure, and the associated gas reaching the surface is mixed with some of the highest concentrations of toxic, metal-eating hydrogen sulphide (H2S) ever encountered.
The multinational group of oil companies developing Kashagan has identified stress cracking due to sulphur-laden gases as "the root cause of the pipeline issues" at Kashagan.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Offshore Australia Project Marks Step-Change (Jan 16)
- Venezuela Will Remap its Caribbean Oil, Gas Prospects (Jan 09)
- Offshore Guyana Wildcat Spuds (Jan 07)
Company: Shell more info
- GOM Subsea Contract Goes to McDermott (Nov 27)
- Shell Exec Says Canada Pipeline Debacle Won't Affect LNG Decision (Sep 24)
- Silvertip Subsea Contract Goes to McDermott (Aug 07)
Company: Total S.A. more info
- Saudi Aramco and Total JV to Hire SMBC to Advise on Funding (Jan 17)
- Deepwater Nigeria Field Starts Production (Jan 02)
- Total Spuds Well Offshore South Africa (Dec 27)
Company: ENI more info
- Eni Secures Two Deals for Oman Blocks (Jan 14)
- Eni to Operate Alaska Oil Field (Jan 03)
- Eni Spuds Well in Central North Sea (Dec 31)
Company: KazMunayGas more info
- Shell Said to Drop Plan to Buy Stake in Kazakh State Oil Company (Oct 09)
- Caspian Pipeline Consortium Cuts CPC Blend Export Plan by 10 Pct (Aug 21)
- New UK Listing Rules Set to Attract State Companies Beyond Aramco (Jul 17)