Kazakh government hopes to obtain Kashagan oil this year
Astana, Kazakhstan, March 18
By Daniyar Mukhtarov - Trend
The Kazakh government hopes to get Kashagan oil this year, expert on oil and gas issues Sergey Smirnov said on March 17.
"Preserving the oil production forecast in 2014 at 83 million tons stipulates that despite the serious problems with the work at Kashagan, the government hopes to resume the production of raw materials in this field," Smirnov told Trend on March 17.
It was previously reported that while talking about the revenues to the state budget, Minister of Economy and Budget Planning Yerbolat Dossayev reported last week that oil production forecast for 2014 remained at 83 million tons.
Kazakhstan produced 81.731 million tons of oil, including gas condensate in 2013, which is 3.2 percent more than in 2012.
Kazakhstan ranks ninth in the world according to the proven oil reserves. Oil production has increased more than threefold, gas production - more than fivefold for over 20 years.
Kashagan is a large oil and gas field in Kazakhstan located in the northerly part of the Caspian Sea. Its geological reserves are estimated at 4.8 billion tons of oil. Total oil reserves amount to 38 billion barrels, some 10 billion being recoverable reserves. There are large natural gas reserves at the Kashagan field of over one trillion cubic meters.
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 percent and achieved a royalty payment that wasn't envisaged in the preliminary agreement.
Oil production at the field began in October 2013, but it was suspended two weeks after beginning due to the leaks in the gas pipeline.
Translated by NH
Edited by CN