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Confirmation of oil presence at Kashagan, safe production outweighs suspension

Oil&Gas Materials 24 June 2014 14:11 (UTC +04:00)

Astana, Kazakhstan, June 24

By Daniar Mukhtarov - Trend:

The confirmation of the oil presence at the Kashagan field is the most important thing for Kazakhstan, despite the suspension of oil production at the field, Kazakh Oil and Gas Minister Uzakbai Karabalin told Trend on June 23

Karabalin made the remarks answering a question about the possible timeframes for resumption of production following the detection of leaks on the pipelines.

"The autumn of last year showed that the presence of oil at the Kashagan field is confirmed, the wells are operating normally and in general this large scale complex can function. This is the main thing," Karabalin added.

Oil production at Kashagan has been repeatedly postponed and in the autumn last year it was resumed, and was again interrupted due to a number of technical deviations. Leading organizations were involved in exploring the problem issues.

"Currently, a plan is being developed for further action. The detected problems are being very carefully reviewed in order to minimize them thereafter. No need to hurry here," the minister said. "Moreover, we and other project participants are considering proposals to optimize all aspects of the project's functioning, including the technical and organizational aspects."

Oil production at Kashagan field started on September 11, 2013. However, on Sept. 24, the usage of the field was suspended due to a gas leak on a pipeline running from the D Island to the Bolashak Integrated Oil and Gas Plant.

The pipeline sections were supplied by two Japanese companies - Sumitomo and JFE, and the Italian company Saipem was engaged in laying the pipes.

Experts found out that the sulfide stress cracking was the immediate cause of the pipeline leaks. The sulfide stress cracking was itself caused by unforeseen increase in hardness of the metal at very small sections of the pipeline.

Resumption of production will depend on the research results, to be available by late Q2, but the production is not expected to be resumed in 2014.

The North Caspian Consortium is committed to securing the production safety in compliance with global best practice of operating oil and gas fields, the provisions of the North Caspian Sea Production Sharing Agreement (NCSPSA), and the legislation in effect.

The project participants are: KMG Kashagan B.V., AGIP Caspian Sea B.V., CNPC Kazakhstan B.V., Exxon Mobil Kazakhstan Inc., INPEX North Caspian Sea Ltd., Shell Kazakhstan Development B.V., and Total E&P Kazakhstan.

NCOC is the operator under the North Caspian Sea Production Sharing Agreement, acting on behalf of the North Caspian Consortium.

Edited by CN

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