...

Minister: Concept of developing second phase of Kashagan Field is not effective

Oil&Gas Materials 31 January 2011 17:44 (UTC +04:00)
The concept of the second phase of the project on development of the largest field in the Kazakh Caspian shelf – Kashagan – has not yet been agreed, Kazakh Oil and Gas Minister Sauat Mynbayev said at the ministry’s collegium meeting on Monday.
Minister: Concept of developing second phase of Kashagan Field is not effective

Kazakhstan, Astana, Jan. 31 / Trend A.Maratov /

The concept of the second phase of the project on development of the largest field in the Kazakh Caspian shelf - Kashagan - has not yet been agreed, Kazakh Oil and Gas Minister Sauat Mynbayev said at the ministry's collegium meeting on Monday.

"The authoritative structure cannot approve the contractor for the development of the concept of the second phase due to its inefficiency," Mynbayev said.

Kazakh National Company JSC KazMunaiGaz (KMG) Board Chairman Kairgeldy Kabyldin said that currently the project implementation period of the Kazakh Caspian oil transportation system remains an open question, since it depends precisely on the second phase of the Kashagan project.

"Timing of this project depends on the second phase of Kashagan Field development. Yet, the company agrees on work related to project's feasibility study with the State Oil Company of the Azerbaijan Republic (SOCAR) and works out details of the Eskene-Kuryk Project," Kabyldin said at the meeting.

Mynbayev said the consortium leading the Kashagan Field development is currently at the stage of experimental industrial development.

"Timing of this phase is years 2012-2013, and we hope to first get oil in the previously agreed terms," he said.

The largest participants to the Kashagan project are currently the companies Eni, Royal Dutch Shell, ExxonMobil and Total, who own 18.5 percent of the consortium. ConocoPhillips, with 9.3 percent, and Japan's Inpex, with 8.3 percent, are also in the project.

Latest

Latest