Start of the production at Kashagan in Kazakhstan will depend on the results of commissioning works

Kazakhstan, Astana, 27 June / Trend D.Mukhtarov /

Start of the oil production at Kashagan field in Kazakhstan will depend on the results of commissioning works, the source of oil and gas sector told Trend.

"On upcoming Sunday, June 30, the construction works to be completed on Kashagan. All objects are constructed here. Now the matter is the commissioning works and start-up operations, which have already begun. The start of the Kashagan oil production depends on their results", - the source said.

As reported last week, the deputy of the International Energy Agency (IEA), Richard Jones, speaking at the international conference "Development of the Caspian shelf" in Atyrau, said that oil production at Kashagan will start in 2014, although earlier there was officially stated that the production from the field to be start in October 2013.

"Kashagan is a very complex project. Here, you face with the high reservoir pressure and a high content of hydrogen sulfide. Because of these the date of the first oil production was altered several times to ensure safety during the entire period of oil production", - the source added.

According to him, today at Kashagan at two sites the commissioning works are undergoing, namely on the installation of oil and gas "Bolashak" and at the sea complex.

At the "Bolashak", which was built about 30 kilometers from the regional center, the crude oil produced in the Kashagan field, will be purged of gas impurities and water prior to export.

"The installation "Bolashak" is ready. Now here is a check for signs of leaks. Checking of the all nodes on the sea complex is necessary since it is a closed system, in which the oil will flow with hydrogen sulfide", - the source said.

According to him, if there is at least one leak, the system automatically closes.

According to the source, in October of this year, there comes a time when the state does not reimburse the costs of the international consortium working on the development of the Kashagan field.

"Therefore, the contractor is trying to run the project by October of this year, but then again, it all will depend on the outcome of the end of commissioning works", - the source said.

He did not exclude the fact, that the start of oil production could begin in the spring of the next year, after the end of ice season in Northern Caspian, which freezes in the winter.

As previously reported, on June 30, British Prime Minister David Cameron and President of Kazakhstan Nursultan Nazarbayev will visit Atyrau. The visit includes meetings with representatives of the British oil and gas companies operating in the Caspian shelf.

According to reports, the start of the commercial production from the field has repeatedly postponed; the last time it was announced by October 2013.

North-Caspian project is implemented under a production sharing agreement for the North Caspian Sea, signed November 18, 1997, and includes the Kashagan field, Kayran, Aktoty, Kalamkas. The Kashagan field - one of the largest deposits in the world, investigated in the last 30 years with geological oil reserves of 4.8 billion tons.

NCOC (North Caspian Operating Company BV) - a single operator of the North Caspian project. The shareholders of NCOC are Agip Caspian Sea BV (16.81 percent), KMG Kashagan B.V. (16.81 percent), Conocophillips North Caspian Ltd. (8.40 percent), ExxonMobil Kazakhstan Inc. (16.81 percent), Inpex North Caspian Sea Ltd. (7.56 percent), Shell Kazakhstan Development BV (16.81 percent) and Total E & P Kazakhstan (16,81 percent).