Cuts to Kashagan budget to be specified in June: Head of KazMunayGaz

Oil&Gas Materials 12 June 2009 10:45 (UTC +04:00)

Kazakhstan, Astana, June 12 / Trend , K.Konyrova/

"We will cut the budget of the Kashagan project on the background of the financial crisis when prices for services and materials have dropped," President of KazMunayGaz Kairgeldi Kabyldin said. However, Kabyldin did not specify the cuts to the budget.

"The task is not to specify how much we need to cut the cost of the project. Our task is to try to cut expenses while prices for services and commodities have dropped. If we succeed to cut the cost of investments, then it will be profitable first for Kazakhstan," he said.

A total $137 billion was invested into the Kashagan project. "The cost of the first phase of development of Kashagan is $37 billion. Roughly $18 billion have been invested so far," Kabyldin added.

The next meeting of the project managing committee to consider results of talks with contractors of the project will be held in June, 2009. The cuts to the project will be divulged after this meeting, he said.

The first Kashagan oil will be pumped in the end of 2012 or in early 2013 in accordance with the recent agreement among participants of the North-Caspian project.

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