Kazakh Oil and Gas Ministry confirms date of launching production at Kashagan
Kazakhstan, Astana, Oct. 2 / Trend D. Mukhtarov /
The Kazakh Oil and Gas Ministry confirmed the date of expected commencement of commercial production on the "Kashagan" field in the period from January to June 2013.
"We expect the commercial production will start at Kashagan in the period from January to June 2013," Kazakh Oil and Gas Minister Sauat Mynbayev said at KazEnergy forum.
"The Kazakh Oil and Gas Ministry expects the relevant documents on the second phase of the Kashagan project from the consortium. The preparatory work is underway."
Launching oil production at "Kashagan" was postponed several times. The consortium of foreign companies led by Eni initially promised to guarantee commercial production in 2008, then it was postponed to 2011. Another memorandum was signed later. The commercial oil production at the "Kashagan" field in the Caspian Sea was postponed to 2013. The Kazakh government and the consortium agreed on the stability of the tax regime for the Kashagan development contract.
Kashagan is one of the largest fields in the world discovered in the last 40 years. According to analysts, with Kashagan Kazakhstan has potential to join top five of largest oil companies in the world. Earlier it was planned to start production in Kashagan in 2005, but due to technical difficulties this term was postponed to late 2012-early 2013.
Kashagan project partner-companies are Eni, KMG Kashagan BV, Total, ExxonMobil, Royal Dutch Shell having approximately 16.81 percent stake, ConocoPhillips - 8.4 percent, and Inpex - 7.56 percent. The project is being developed by the NCOC consortium.