Start of oil production delayed at Kazakh Kashagan

Oil&Gas Materials 6 March 2013 13:43 (UTC +04:00)

Azerbaijan, Baku, March 6 /E. Kosolapova/

Oil production at the Kashagan field in Kazakhstan will start in June, the managing director of Agip KCO Umberto Carrara said at a meeting with the Atyrau regional head Baktykozha Izmukhambetov, Kazinform reported.

According to Carrara, this date is indicated in the documents on the project signed between the Kazakh government and the companies developing the field.

"We have some problems to resolve. But the company makes every effort to fulfil them," Carrara said.

Earlier the companies, developing the project, planned to begin commercial production at Kashagan in March 2013.

Kashagan is one of the largest fields discovered in the past 40 years. According to the analysts it has the potential to unite the top five largest oil companies in the world. Kazakh geologists estimate geological oil reserves at 4.8 billion tons. According to the project operator, total oil reserves are 38 billion barrels (six billion tons), with a recoverable volume of about 10 billion barrels. Natural gas reserves are estimated at over one trillion cubic meters.

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.

Agip KCO is ENI's subsidiary.