Kazakh president announces cost of resumption of oil production at Kashagan
Baku, Azerbaijan, April 27
By Elena Kosolapova - Trend:
It will cost over $2 billion to resume oil production at Kazakh Kashagan oil field, Kazakh President Nursultan Nazarbayev said on Apr. 27 at a press conference in Astana, Novosti-Kazakhstan news agency reported.
Kazakhstan hopes to resume oil production at Kashagan field in late 2015, or in 2016, the he said.
The president noted that the companies developing the field, including Kazakh National Oil and Gas Company KazMunaiGas, are working on this issue.
Nazarbayev said that the revenues from Kashagan oil will help to implement the planning programs in Kazakhstan.
Kashagan is a large oil and gas field in Kazakhstan, located in the north of the Caspian Sea. The geological reserves of Kashagan are estimated at 4.8 billion metric tons of oil. The total oil reserves amount to 38 billion barrels, some 10 billion out of them are recoverable reserves. There are large natural gas reserves at the Kashagan field - over one trillion cubic meters.
The production at the Kashagan field started Sept. 2013, but in October, it was ceased after a gas leak in one of the main pipelines. The analysis revealed numerous cracks in the pipeline, which needed to be completely replaced. The replacement was said to take at least two years.
The project participants are KMG Kashagan BV, AGIP Caspian Sea BV, CNPC Kazakhstan BV, Exxon Mobil Kazakhstan Inc., INPEX North Caspian Sea Ltd., Shell Kazakhstan Development BV, Total E&P Kazakhstan.
Edited by S.I.
Follow the author on Twitter: @E_Kosolapova