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Kazakhstan develops project on gas re-injection at Kashagan

Oil&Gas Materials 23 November 2012 04:53 (UTC +04:00)
North Caspian Consortium North Caspian Operating Company BV (NCOC) is working on a project to re-injection of gas at Kashagan, the press service of the company told Trend Capital.
Kazakhstan develops project on gas re-injection at Kashagan

Kazakhstan, Astana, Nov 21 /Trend D. Mukhtarov/

North Caspian Consortium North Caspian Operating Company BV (NCOC) is working on a project to re-injection of gas at Kashagan, the press service of the company told Trend .

"NCOC is working on the development of the gas re-injection project (CC01 project) and discussions are ongoing with the PSA Authority," the source said, responding to request to comment on the information of the Bloomberg agency with regard to the delay of oil production increase from the field.

According to the spokesman, the work on the project, which includes the injection of natural gas into the reservoir, would begin this year.

Bloomberg reported, citing its sources, that the plan to increase oil production by 20 percent at Kashagan may be postponed, which will reduce the time to recoup the costs of a project worth $46 billion, which was already late for 8 years.

"Kazakhstan recommended partners to suspend plan worth $ 5 billion on production increase from 370 thousand barrels to 450 thousand barrels per day until the partners learn how the start of production will affect the field," the sources, who asked to remain unnamed, told the agency.

According to the source the project of gas injection into the reservoir should help to increase oil production. "The consortium is holding negotiations with the competent authority - the Ministry of Oil and Gas of Kazakhstan on this project," the press officer said.

Recall, it was initially planned to start production at the Kashagan field in 2005, but it was postponed to the end of 2012 - beginning of 2013 due to technical difficulties.

North-Caspian project is implemented under a production sharing agreement for the North Caspian Sea, signed on November 18, 1997, and includes Kashagan, Kayran, Aktoty and Kalamkas fields.

At present the Kashagan project participants are Eni, Royal Dutch Shell, Exxon Mobil, Total and KazMunaiGas, which owns equal shares (16.81 per cent), as well as ConocoPhillips - 8.4 per cent and Japan's Inpex - 7.55 per cent.

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