Astana, Kazakhstan, Dec. 5
By Daniyar Mukhtarov - Trend:
Currently, Agip KCO company's business systems are audited, North Caspian Operating Company (NCOC) told Trend on Wednesday. The company has been developing the Kashagan field in Kazakhstan.
"This audit is carried out every two years and is an independent risk assessment," the company said today.
"The purpose of the audit is to assess the company's activity for compliance with business objectives set out in the Agreement on Joint Activity," the company said.
Agip KCO is an Eni S.p.A. subsidiary. It is operating in accordance with the North Caspian Sea Production Sharing Agreement signed in 1997 within a contract with the North Caspian Operating Company.
The company is charged with the implementation of Phase 1 (Experimental Development Programme) on developing the Kashagan offshore field including the achievement of commercial production, complying with the highest international standards for safety and environmental protection.
Moreover, Agip KCO is charged with the implementation of Phase 2, the onshore complex project within the Kashagan field development.
Kashagan is a large oil and gas field in Kazakhstan located in the north of the Caspian Sea. Its geological reserves are estimated at 4.8 billion tons of oil. The total oil reserves amount to 38 billion barrels, some 10 billion of which are recoverable reserves. There are large natural gas reserves at the Kashagan field of over one trillion cubic meters.
The Kashagan field is located at the shallow part of the North Caspian Sea and stands out with its fragile ecosystem. Nevertheless, this oil and gas reservoir is unique for its huge reservoir pressure, large depth and high content of hydrogen sulphide.
The launch of oil production at Kashagan was postponed several times. The consortium of foreign companies led by Eni initially planned to provide commercial production in 2008.
In the course of coordination at the time of postponing commercial production, Kazakhstan increased its share in the project from eight to 16.8 per cent and achieved a royalty payment that wasn't envisaged in the preliminary agreement.
Another memorandum was signed in late June 2008 after which the period of industrial oil production at the Kashagan field on a shelf in the Caspian Sea was postponed to 2013.
It was earlier reported that the North Caspian Operating Company declared the start of the first oil production at the Kashagan field on Sept.11, 2013 on behalf of the consortium within the Production Share Agreement on the North Caspian.
However, gas leaks were detected in late September and early October in the land-based section of the gas pipeline, two kilometres from the Bolashak plant and oil production was suspended.
The partner companies in the Kashagan project are: Eni, KMG Kashagan BV (a subsidiary of KMG), Total, ExxonMobil and Royal Dutch Shell each have a 16.81 per cent share stake, ConocoPhillips has a 8.4 per cent share and Inpex has 7.56 per cent of the shares.